ACTIVITY-BASED COSTING An organisation so as to be to comply with financial reporting requirements, the traditional cost accounting system is closely linked to its general ledger system. This in particular has to do with cost allocation. Mostly, costs are accounted either for valuation (i.e., financial statements analysis) or decision-making activities (i.e., internal purpose) or both. Meanwhile, sometimes the costs are accounted for reimbursement purposes (e.g., corporate health insurance, corporate
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CHAPTER 5 Activity-Based Management and Activity-Based Costing Questions 1. Activity-based management is a management approach that associates the activities executed by an organization with the value customers derive from products. Efficiency and effectiveness are achieved by reducing the level of activities that do not create value for the customer and by improving execution of activities that do create customer value. Specific tools beneath the ABM umbrella include activity
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720851 Taiana Marco 672497 Trifonov Angel 720619 A.Y. 2007/2008 Contents Q1.Do you agree with Water’s decision to keep product 103? 3 Analysis of the P&L statement of 31 December 2004 3 Sensitivity analysis 5 Strategic scenarios 9 Q2. Should Superior lower as of January 1, 2006 its price of product 101? To what price? 11 Q3.
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THE NATURE OF MANAGEMENT ACCOUNTING [SUMMARY] What is Management Accounting? Management Accounting is the process within an organization that provides information used by an organization’s managers in planning, implementing and controlling the organization’s activities. Management Accounting as One Type of Information Information is a fact, datum, observation, perception or nay other thing that adds to knowledge. An organization’s day-to day activities requires a considerable
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ACCOUNTING 525: MANAGERIAL ACCOUNTING Winter Quarter 2003 INSTRUCTOR: Professor D. L. Jensen 428 Fisher Hall 292-2529 at office (Please leave recorded message; if I'm not in, I'll return your call.) jensen.7@osu.edu (I check my e-mail several times daily and will respond ASAP) OFFICE HOURS: By appointment or chance STUDENT ASSISTANT: Ms. Yun Jin (jin.81@osu.edu) REQUIRED TEXT AND SUPPLEMENTARY MATERIALS: Horngren, Foster and Datar, Cost Accounting: A Managerial Emphasis, 11th edition
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you plan to charge customers to buy a single unit of your product. Psychology of Pricing: Pricing can involve a complicated decision-making process on the part of the consumer, and there is plenty of research on the marketing and psychology of how consumers perceive price. Take the time to review articles on pricing strategy and the psychology of pricing before choosing how to price your product or service. Pricing Methods: There are several different schools of thought on how to treat price when
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Extending New Institutional Theory: Regulation and ActivityBased Costing in Portuguese Telecommunications* Maria Major1, 2 and Trevor Hopper3 1 Departamento de Finanças e Contabilidade, ISCTE – Escola de Gestão, Av. das Forças Armadas, 1649-026 Lisboa, Portugal. 2 UNIDE Researcher. 3 Manchester School of Accounting and Finance, University of Manchester, Manchester, M13 9PL, UK. * The authors wish to thank Bob Scapens, Sven Modell, Salvador Carmona, Angelo Riccaboni, John Burns, Mahmoud Ezzamel
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measurement. Planning and decision making. Preparation of financial statements. Internal auditing and control. 2. Strategic management can be defined as the development of a sustainable: A. B. C. D. E. Chain of command. Competitive position. Cash flow. Business entity. Company image. 3. Cost management has moved from a traditional role of product costing and operational control to a broader strategic focus, which places an emphasis on: A. B. C. D. E. Competitive pricing. Domestic marketing. Short-term
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Cost Accounting : An Introduction MODULE - 6B Elementary Cost Accounting 27 COST ACCOUNTING : AN INTRODUCTION After passing your senior secondary examination, if you set up a small manufacturing unit, say manufacturing of packing boxes, a problem will arise what price of each box you should quote to the buyer. Many factors are considered while fixing the price of a product/item such as competitors’ price etc. One of the basic factors is the cost of its production. Cost is essential not only
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CVP relationships: - Equation - Contribution margin - Graph methods ABC systems apply equally well to manufacturing, merchandising and service companies. ABC information is useful for the: -Pricing and product mix - Cost reduction and process improvement - Product design - Decisions for planning and managing activities Describe sensitivity analysis. How has the advent of the electronic spreadsheet affected the use of sensitivity analysis? Sensitivity analysis is a "what-if" technique
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