------------------------------------------------- Management accounting Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. In contrast to financial accountancy information, management accounting information is: * primarily forward-looking, instead of historical * model based with
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............................................................................................................. 9 Exhibit 1. Net income in traditional and ABC systems. .................................................................. 12 Exhibit 2. Cost per unit based on ABC method ............................................................................... 13 Exhibit 3. Recommended Selling Prices with 35% Gross Margin ................................................ 14 Bibliography ........
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INTRODUCTION Accounting has rightly been termed as the language of the business. The basic function of a language is to serve as a means of communication. Accounting also serves this function. It communicates the results of business operations to various parties who have some stake in the business viz., the proprietor, creditors, investors, Government and other agencies. Though, accounting is generally associated with business but it is not only business which makes use of accounting. Persons like
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use of J. Wang, 2016. 9-101-092 REV: AUGUST 5, 2003 ROBERT S. KAPLAN Wilkerson Company The decline in our profits has become intolerable. The severe price cutting in pumps has dropped our pre-tax margin to less than 3%, far below our historical 10% margins. Fortunately, our competitors are overlooking the opportunities for profit in flow controllers. Our recent 10% price increase in that line has been implemented without losing any business. Robert Parker, president of the Wilkerson
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ACCOUNTING 603 FALL 2012 Tijuana Bronze Machining (TBM) As time goes by, it becomes clear to me that our competitors are crazy. Pumps are a major product in a big market for all of us, but with the prevailing price cutting mentality no one will be able to sell pumps profitably as long as we all are forced to match each other’s lower prices. I guess we should be grateful that competitors don’t play the same foolish game in valves and flow controllers. Even with the 12 ½% price increase, we
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1-812-471-9341 E-mail: achea@ix.netcom.com Received: June 21, 2011 doi:10.5539/ijbm.v6n11p3 Accepted: July 4, 2011 Published: November 1, 2011 URL: http://dx.doi.org/10.5539/ijbm.v6n11p3 Abstract The author begins the article by outlining a brief historical evolution of activity-based costing (ABC) in the USA preceded by an operating definition of terminologies. Next, he presents the literature review and the methodology employed during the study. He reviews the application of ABC in the service sector
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Full Cost Accounting A Course Module on Incorporating Environmental and Social Costs into Traditional Business Accounting Systems Noellette Conway-Schempf, Ph.D. Carnegie Mellon University Pittsburgh, PA 15213 1 Overview: This module describes methods for incorporating environmental information into accounting management information systems to allow financial decision makers to include environmental criteria in their decisions. The module is subdivided to permit a progression of detail
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the service sector—banks—needs accurate cost information to make strategic decisions, and how more refined accounting systems help fulfill this need. Buckeye National Bank is a hypothetical bank that has suffered falling profits despite a shift in customer base toward retail customers, which the current information system reports are more profitable than business customers. Following a step-by-step approach, you will develop the Bank’s average cost of serving a retail customer account and
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MANAGERIAL ACCOUNTING Master of Business Administration Kuala Lumpur Malaysia 1. Define and explain the meaning of a manufacturing overhead rate that is applied in a job order costing system. A predetermined overhead rate is based on the relationship between estimated annual overhead costs and annual operating activity. It also used to apply the provisions of the estimated cost of manufacturing overhead cost object for a particular reporting period. This rate is often used to help close
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LEARNING OBJECTIVE LO1: Explain why accounting is essential for decision makers and managers. LO2: Describe the major users and uses of accounting information. LO3: Explain the role of budgets and performance reports in planning and control. LO4: Describe the cost-benefit and behavioral issues involved in designing an accounting system. LO5: Discuss the role accountants play in the company’s value chain functions. LO6: Identify current trends in management accounting. LO7: Explain why ethics and standards
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