... Contrasting ABC and traditional costing 5
Task 3: Flexible budget and flexible budget performance report 12
Task 4: Cash Budget andControl 16
References 21
20
Cash budget for March and April:
March
April
1. ... performance?
Etc.,
Therefore, CVP analysis is an important tool in planning anddecisionmaking but it is not so
accurate.
i
MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL PROGRAM
ASSIGNMENT
ACCOUNTING ... Managerial Accounting (3
rd
Edition) . International Student edition, South – Western, CENGAGE Learning. China
Translation & Printing Services Limited.
3. Pham Thi Ngoc Bich (2013). Accountingfor Decision...
... and young people 30
15. Decisionmakingfor babies and young children who
cannot consent for themselves 34
16. Decisionmaking by competent minors 38
PART 3C The process of decisionmakingfor ... that the high standards set fordecision making
with andfor adults apply similarly to decisions in paediatric care.
Although specific and important differences exist between adult and
child patients, ... advance directive and decisions
involving children and young people 25
PART 3A Decisions involving adults 25
13. Capacity and incapacity 25
PART 3B Decisions involving babies, children and young people...
... understand the importance of ethics in business andaccountingand how to
recognise and handle ethical dilemmas as part of the decision- making process.
DecisionMakingand the Role of Accounting
11
1.2 ... accounting information and explain how
they use the information in their decision- making processes.
DecisionMakingand the Role of Accounting
3
used have developed from the earliest known accounting ... measuring,
recording and communicating economic information to permit informed
judgements and decisions by users of the information.
1.4 Users of accounting information form two main groups: decision makers...
... upward
22
22
.
af
.
2
Physics and Measurement
SOLUTIONS TO PROBLEMS
Section 1.1 Standards of Length, Mass, and Time
No problems in this section
Section 1.2 Matter and Model-Building
P1.1 From ... s and t = 300. s).
P2.17 (a)
a
v
t
== =
∆
∆
800
600
13
.
.
.
ms
s
ms
2
(b) Maximum positive acceleration is at t = 3 s, and is approximately
2 m s
2
.
(c)
a
=
0
, at
t
=
6 s
, and also for ... mi
a
f
Chapter 1
3
P1.6 For either sphere the volume is
Vr=
4
3
3
π
and the mass is mV r==
ρρπ
4
3
3
. We divide this equation
for the larger sphere by the same equation for the smaller:
m
m
r
r
r
r
s
ss
A
A
A
===
ρπ
ρπ
43
43
5
3
3
3
3
.
Then...
... between risk and
return.
What is management accounting?
l All accounting must be useful fordecisionmakingand this requires a clear under-
standing of for whom andfor what purpose the information ... we deal with each topic.
For accounting information to be useful fordecision making, the accountant must
be clear about for whom the information is being prepared andfor what purpose it will
be ... financial infor-
mation and then communicating this information to those making decisions. This
decision- making perspective of accounting provides the theme for the book and shapes
the way that...
... is
reviewing the performance of one hotel andmaking plans for next year.
The managers have in front of them the results for this year (based on some actual results
and some forecasts to the end ... World 3.4 reveals that Ford’s subsidiary Volvo is struggling to reach its BEP. Ford
has recently disposed of its three UK luxury brands (Aston Martin, Jaguar and Land
Rover) and is thought to be ... costs for decision
making, we should recall that when we are trying to decide between two or more
possible courses of action, only costs that vary with the decision should be included in the
decision...
... 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 market (in the case of A and B) and
from ... only point in providing management accounting infor-
mation is to help managers make more informed decisions. There are broadly four
areas where managers use information concerning the full cost ... or services. These are:
1 Pricing and output decisions. Having full cost information can help managers to make
decisions on the price to be charged to customers for the business’s products or ser-
vices....
... manufactures two types of Sprizzer – Standard and Deluxe. Each
product requires the incorporation of a difficult-to-handle special part (one of
them for a Standard and four for a Deluxe). Both of these ... batches for Standards and small ones for Deluxes). Each new batch
requires that the production facilities are ‘set up’.
Details of the two products are:
Standard Deluxe
Annual production and sales ... of the vehicles, packed with electronic control
units aimed at keeping them stable off road.
Land Rover, formerly owned by BMW and now up for sale by Ford, has seen a flurry of new
vehicle launches...
... to be more costly and which method
is likely to be more beneficial for forward planning?
Periodic budgeting will usually take less time and effort to prepare and will therefore be
less costly. ... for a system of control. As mentioned earlier in the chapter,
control is concerned with ensuring that events conform to plans. If senior manage-
ment wishes to controland to monitor the performance ... yardstick. If there is information available concerning the actual perform-
ance for a period, and this can be compared with the planned performance, then
a basis forcontrol will have been established....
... for exercising control over a
business. Control involves making events conform to a plan and, since the budget is
a short-term plan, making events conform to it is an obvious way to try to control ... Plan (OBP). The OBP is just a forecast (or financial plan)
for the year and provides a baseline for understanding actuals and changes, for communicating,
discussion and reaching consensus (a key ... budget
CHAPTER 7 ACCOUNTINGFOR CONTROL
220
Feedback control
Figure 7.2
When a comparison of actual and budgeted performance shows a divergence, steps can be
taken to get performance back to...
... managers.
Standard costing
l Standards = budgeted physical quantities and financial values for one unit of inputs
and outputs.
l There are two types of standards: ideal standards and practical standards.
l ... provides some information on the use of standards in practice.
Other uses for standard costing
SOME PROBLEMS . . .
247
Although standards and variances may be useful for decision- making purposes, ... performance is measured. To maintain their usefulness for planning and control
purposes, they should be subject to frequent review and, where necessary, revision.
Standards provide the basis for...
... method and
88 per cent used more than three methods of investment appraisal.
Source: Based on information in Alkaraan, F. and Northcott, D., ‘Strategic capital investment decision- making: a role for ... a
project and should help decision makers to appreciate the uncertainties that have to
be faced.
CHAPTER 8 MAKING CAPITAL INVESTMENT DECISIONS
300
‘
The different possible project outcomes for the ... project
Once the managers responsible for investment decisionmaking are satisfied that the
project should be undertaken, formal approval can be given. However, a decision on
a project may be postponed...
... is
reviewing the performance of one hotel andmaking plans for next year.
The managers have in front of them the results for this year (based on some actual results
and some forecasts to the end ... activity and in a form that
can easily be understood by non-financial managers. The break-even chart can there-
fore be a useful device for explaining this relationship.
Real World 3.1 shows information ... contracts such that if they do not work for any rea-
son, they are not paid. The baskets are sold to a wholesaler for £14 each.
What is the BEP for basket makingfor the business?
Solution
The BEP...
... very helpful 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 demand to the ... estab-
lish more accurate costs for each unit of product or service. This should help managers
in assessing product profitability and in making decisions concerning pricing and the
appropriate product ... 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 cost centres, where each type of
overhead...
... things that create value for the
business (for example, innovation, building brand loyalty, responding quickly to
competitive threats, and so on);
l reinforce a ‘command andcontrol structure that ... should be able to:
l Discuss the role and limitations of budgets for performance evaluation and
control.
l Undertake variance analysis and discuss possible reasons for the variances
calculated.
l Discuss ... 7 ACCOUNTINGFOR CONTROL
228
‘
Total, efficiency and rate variances for direct labour for May
Figure 7.5
The total direct labour variance is the sum of the direct labour efficiency variance and...