MANAGEMENT ACCOUNTING (Relevant Costing and Standard Costing) Instructions: In separate sheet of paper, number your paper 1 to 120, and write the letters only (a,b,c,d, T, F) TRUE-FALSE STATEMENTS 1. Incremental analysis identifies the probable effects of management decisions on future earnings. 2. In making decisions, management considers only financial information because accounting is presented in financial context. 3. In incremental analysis, total fixed costs will
Words: 4833 - Pages: 20
for a competitive strategy to be successful. The profitability of a firm depends to a large extent on how effectively it manages the various activities in the value chain, such that the price that the customer is willing to pay for the company’s products and services exceeds the relative costs of the value chain activities. It is important to bear in mind that while the value chain analysis may appear as simple in theory, it is quite time-consuming in practice. The logic and validity of the proven
Words: 3447 - Pages: 14
and hide from the customer the fact that manufacture/supply delay is longer than delivery delay, and also to ease the effect of imperfections in the manufacturing process that lower production efficiencies if production capacity stands idle for lack of materials. The reasons for keeping stock All these stock reasons can apply to any owner or product stage. Buffer stock is held in individual workstations against the possibility that the upstream workstation may be a little delayed in providing
Words: 6763 - Pages: 28
organisations consist of activities that link together to develop the value of the business, and together these activities form the organisation’s value chain. Such activities may include purchasing activities, manufacturing the products, distribution and marketing of the company’s products and activities (Lynch, 2003). The value chain framework has been used as a powerful analysis tool for the strategic planning of an organisation for nearly two decades. The aim of the value chain framework is to
Words: 3471 - Pages: 14
obligation within the corporate sector is consequently a strategic component in any strategy for accomplishing the goal of sustainable development; and evaluating the viability of such a strategy requires both the resolution of scientific and manufacturing problems; and also the attention of how organization’s account for environmental cost to demonstrate their corporate social responsibilities. The Environmental Management Accounting (EMA) and the Environmental Financial Accounting (EFA) are
Words: 5757 - Pages: 24
MARGINAL COSTING Introduction This paper explores the use of cost accounting information for decision-making purposes. DEFINITION OF KEY TERMS Marginal cost: This is the cost of a unit of a product or service, which would be avoided if that unit or service was not produced or provided Break-even point: This is the volume of sales where there is neither profit nor loss. 1 9 6 COST ACCOUNTING S T U D Y T E X T Margin of safety: This is the excess of sales over the break-even volume in
Words: 2815 - Pages: 12
Financial Accounting and Cost Accounting Management Accounting Financial, Cost and Management Accounting Cost Concept and Cost Object Cost Management Cost Classification Methods of Costing Techniques of Costing Specific Cost Systems Cost Department and its relationship with other Departments Installation of Costing System Specimen Questions with Answers Test Yourself Page . No 1 1 2 3 4 .5 6 7 10 12 13 14 16 17 18 20 ♦ ♦ 1.0 1.1 EVOLUTION OF COST ACCOUNTING, COST CONCEPTS AND COST CLASSIFICATION
Words: 102642 - Pages: 411
and interpret the sales activity variance. L.O.4 Prepare and use a profit variance analysis. L.O.5 Compute and use variable cost variances. L.O.6 Compute and use fixed cost variances. L.O.7 (Appendix) Understand how to record costs in a standard costing system. For the second month in a row, profits at our Bayou Division are down and I don’t know why. We budgeted $190,000 in profit for August, but the actual result was only $114,500. We thought we had developed realistic monthly budgets. I know sales
Words: 19482 - Pages: 78
FRANCISCO – SINGAPORE – SYDNEY – TOKYO Elsevier The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, UK First edition 2009 Copyright © 2009 Elsevier Ltd. All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department
Words: 187223 - Pages: 749
like competitors and management accounting contributes not only strategy developing also critically evaluates the current strategy of any organisation. In addition, management accountant can assist to control costs by implementing activity based costing methods, offer competitive pricing, budgeting process etc. Also, by applying benchmarking process, management accountant can discover strengths and weakness of Jessop ltd and way to overcome these weaknesses and keep their steady growth by exploiting
Words: 3937 - Pages: 16
