Financial accounting for decision makers 6e peter atrill and eddie mclaney

... role of management accounting A useful starting point for our discussion is to acknowledge the general role of accounting, which is to help people make informed business decisions All forms of accounting, ... degree of standardisation and the range and quality of information provided Not -for- profit organisations l Not -for- profit organisations also require management ac...

Ngày tải lên: 20/06/2014, 23:20

... knowledge of the BEP and the planned volume of activity gives some basis for assessing the riskiness of the activity.) Achieving a target profit In the same way as we can derive the number of units of ... Expected volume of sales BEP Difference (margin of safety): Number of baskets Percentage of estimated volume of sales Without the machine (number of baskets) 500 250...

Ngày tải lên: 20/06/2014, 23:20

... in providing management accounting information is to help managers make more informed decisions There are broadly four areas where managers use information concerning the full cost of the business’s ... The logic of full costing is that the entire cost of running a particular facility, say an of ce, is part of the cost of the output of that of ce For example, the rent may...

Ngày tải lên: 20/06/2014, 23:20

... standard profit mark-up of 25 per cent of full cost Management is concerned by the lack of profit Full cost for one unit of a product is calculated by charging overheads to each type of product ... for those involved with pricing decisions to have some feel for the elasticity of demand of the commodity that will be the subject of a decision The sensitivity of the d...

Ngày tải lên: 20/06/2014, 23:20

... senior management is aware of the potentially threatening nature of this form of budgeting, care can be taken to apply ZBB with sensitivity However, in the quest for cost control and value for money, ... by central management before being submitted to the Board for approval Updated forecasts for the year are prepared at least quarterly The Board is provided with details of...

Ngày tải lên: 20/06/2014, 23:20

... One Fuel Miser consists of one of each component The planned sales for the first seven months of the forthcoming accounting period, by channels of distribution and in terms of Fuel Miser units, ... first point we must pick up, therefore, is the loss of profit arising from the loss of sales of 100 units of the product Activity 7.2 What will be the loss of profit arising f...

Ngày tải lên: 20/06/2014, 23:20

... £000 Cost of machine Operating profit before depreciation Operating profit before depreciation Operating profit before depreciation Operating profit before depreciation Operating profit before depreciation ... time years’ time years’ time Cost of machine Operating profit before Operating profit before Operating profit before Operating profit before Operating profit before Disposal proceed...

Ngày tải lên: 20/06/2014, 23:20

... out some of the main findings REAL WORLD 8.10 A survey of US practice A survey of the chief financial officers (CFOs) of 392 US businesses examined the popularity of various methods of investment ... context of investment decisions, because of The relatively long timescales involved There is more time for things to go wrong between the decision being made and the end of t...

Ngày tải lên: 20/06/2014, 23:20

... Survey of Management Accounting, Ernst and Young, 2003 Using contribution to make decisions – marginal analysis If we cast our minds back to Chapter 2, where we discussed relevant costs for decision ... contracts such that if they not work for any reason, they are not paid The baskets are sold to a wholesaler for £14 each What is the BEP for basket making for the business? Solu...

Ngày tải lên: 21/06/2014, 04:20

... budgeted overheads for next year, analysed between the two cost centres This should be in the form of three columns: one for the total figure for each type of overhead and one column each for the two ... theoretical aspects of the subject before going on to look at some more practical issues, particularly the role of management accounting information in pricing decisions M05_ATRI...

Ngày tải lên: 21/06/2014, 04:20

... M., Management Accounting, 5th edn, Prentice Hall, 2007, chapter 11 Drury, C., Management and Cost Accounting, 7th edn, Cengage Learning, 2007, chapter 15 Hilton, R., Managerial Accounting, 6th ... Page 218 ACCOUNTING FOR CONTROL Budgeting for control In Chapter 6, we saw that budgets provide a useful basis for exercising control over a business Control involves making events...

Ngày tải lên: 21/06/2014, 04:20

... £15,000) Net saving before depreciation Net saving before depreciation Net saving before depreciation Net saving before depreciation Net saving before depreciation Net saving before depreciation ... vans Net saving before depreciation Net saving before depreciation Net saving before depreciation Net saving before depreciation Net saving before depreciation Net saving before depreciation ... v...

Ngày tải lên: 21/06/2014, 04:20

... Conventional management accounting has been criticised, however, for failing to address fully the strategic aspects of managing a business This criticism does not mean that the management accounting ... subject must continue to develop if it is to retain a high degree of relevance for decision makers Strategic management accounting is still a fairly new topic and there is...

Ngày tải lên: 21/06/2014, 04:20

... a broader and more complete range of information for managers, which should, in turn, contribute to a more balanced assessment of performance It is, therefore, not surprising that these measures ... considered a better performance indicator than ROI Assessing divisional performance requires some basis for comparison A particular division can be compared with that for: – Other divisions o...

Ngày tải lên: 21/06/2014, 04:20