Tools for Business Decision Management Makers 10 docx

... business s products. Neither C nor D is incorporated into A or B. Costings (per unit) for the pro- ducts are as follows: ABCD ££££ Variable materials 15 20 16 17 Variable labour 25 10 10 15 Other ... unlimited quantities of products C and D to the business, charging £40 per unit for product C and £55 per unit for product D. Next year’s estimated demand for the products, from the m...

Ngày tải lên: 22/06/2014, 02:20

... the business operates when we are undertaking a position analysis or when we are formulating plans for the future. Management What is strategic management accounting? CHAPTER 9 STRATEGIC MANAGEMENT ... in Step 3) and formulating long- and short-term plans to pursue them. 5 Reviewing business performance and exercising control by assessing actual perform- ance against planned perf...

Ngày tải lên: 22/06/2014, 02:20

... making decisions that result in an increase in profits for their particular division, but which reduce the profits of Activity 10. 2 DIVISIONALISATION 371 ‘ M10_ATRI3622_06_SE_C10.QXD 5/29/09 10: 41 ... importance of non-financial measures in managing a business and how they may be used for decision- making purposes. M10_ATRI3622_06_SE_C10.QXD 5/29/09 10: 41 AM Page 366 The above...

Ngày tải lên: 22/06/2014, 02:20

... 12.0 124 100 .0 116 100 .0 100 100 .0 M10_ATRI3622_06_SE_C10.QXD 5/29/09 10: 41 AM Page 384 Sometimes, a division will sell goods or services to another division within the same business. For example, ... others. Activity 10. 21 Real World 10. 10 provides some insight into the kind of non-financial measures that are regarded as important by management accountants in manufacturing...

Ngày tải lên: 22/06/2014, 02:20

... 1.00 Current buying-in cost 2.50 1 .10 Scrap value 1.70 0.40 The metal wire is in constant use by the business for a range of its products. The fabric has no other use for the business and is scheduled ... cost for Buccaneers Ltd for next year is expected to be made up as follows: £000 Direct materials: Forming department 450 Machining department 100 Finishing department 50 Dir...

Ngày tải lên: 22/06/2014, 02:20

... cater for a range of products and no single product decision will cause the business to amend it. Required: (a) Prepare a summary of information that would help with the pricing decision for the ... busi- nesses. The business is about to commence production of a new model of machine for which facilities exist to produce a maximum of 10 machines each week. To assist management...

Ngày tải lên: 22/06/2014, 02:20

... to use the May figures for explaining the variances. Note that the business had budgeted for a higher level of output for June than it did for May. CHAPTER 7 ACCOUNTING FOR CONTROL 224 What else ... shares 60,000 During June, the business intends to make payments of £40,000 for a leasehold property, 10, 000 for equipment and £6,000 for a motor vehicle. The business will...

Ngày tải lên: 22/06/2014, 02:20

... depreciation 20 10 160 2 years’ time Operating profit after depreciation 40 10 10 3 years’ time Operating profit after depreciation 60 10 10 4 years’ time Operating profit after depreciation 60 10 10 5 ... machine (100 ) (100 ) 1 year’s time Operating profit before depreciation 20 (80) ( 100 + 20) 2 years’ time Operating profit before depreciation 40 (40) (−80 + 40) 3 years’ time Oper...

Ngày tải lên: 22/06/2014, 02:20

... the 10% discount rate required to achieve a zero NPV would there- fore be (2.46)/4.21 × 1% = 0.58% The IRR is therefore (10. 00 − 0.58)% = 9.42% However, to say that the IRR is about 9 or 10 per ... estimated price before a zero NPV is obtained. The margin of safety is, therefore, not very high for this factor. In practice this should not represent a real risk because the business cou...

Ngày tải lên: 22/06/2014, 02:20

... major performance indicator. The required minimum rate of return is the business s cost of capital of 10 per cent a year. 10. 6 CHAPTER 10 MEASURING PERFORMANCE 406 M10_ATRI3622_06_SE_C10.QXD ... liabilities 100 100 100 100 100 Current liabilities Trade payables 75 35 65 36 8 Taxation 10 1 3 3 1 Other short-term liabilities – 5 3 – – Overdrafts and short-term loans 4 5 1 10...

Ngày tải lên: 22/06/2014, 02:20