Financial management for decision makers 7th atrill

... 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