basic aspects of management accounting

... marketplace 2.2 Overview of the innovation of management accounting 2.2.1 Definition of management accounting Management accounting refers to the process of preparing management reports and accounts ... advantage 22 2.2 Overview of the innovation of management accounting 23 2.2.1 Definition of management accounting 23 2.2.2 Definition of management accounting innovation .24 ... preferences of interviewees in terms of the different methods of management accounting innovations  Question to question 11 asks about the roles of management accounting innovations in business of the...

Ngày tải lên: 13/03/2014, 14:20

... C01 syllabus A The context of management accounting 10% Comparison and comments A new section, introducing the concept of management accounting, and the role of the management accountant It considers ... time of the year in one of our accredited computer based assessment centres worldwide Find full details about entering certificate exams here February 2012 For C01 Fundamentals of Management Accounting ... Propose a course of action Example from 01 Fundamentals of Management Accounting syllabus Component learning outcome – ‘Explain the importance of cost control and planning within organisations‟ The...

Ngày tải lên: 15/03/2014, 16:20

Ngày tải lên: 29/03/2014, 14:20

... Miller, P (1998) The margins of accounting European Accounting Review, 7(4), 605–622 Mouritsen, J (1996) Five aspects of accounting departments’ work Management Accounting Research, 7(3), 283–304 ... the management accounting implications of absorbing a new foreign subsidiary Report draft London: CIMA Argyris, C (1990) The dilemma of implementing controls: the case of managerial accounting Accounting, ... ‘‘strong’’ culture Academy of Management Review, 546–558 Scapens, R W., & Roberts, J (1993) Accounting and control: a case study of resistance to accounting change Management Accounting Research, 4,...

Ngày tải lên: 08/04/2014, 12:07

... a code of ethics governing their behaviour Management accounting and financial accounting l Accounting has two main strands – management accounting and financial accounting l Management accounting ... value of providing additional management accounting information Figure 1.6 Relationship between cost and the value of providing additional management accounting information The benefits of management ... The management accountant must be aware of the impact of accounting measures of performance on human behaviour When designing accounting measures, it is important to try to ensure that all key aspects...

Ngày tải lên: 20/06/2014, 23:20

... 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 With the machine (number of baskets) ... question of the effect of additional sales of one product or service on sales of another of the business’s products or services There is also the problem of identifying the fixed cost of one particular ... represents the amount of fixed cost, and this stays the same irrespective of the volume of activity Figure 3.1 Graph of fixed cost against the volume of activity As the volume of output increases,...

Ngày tải lên: 20/06/2014, 23:20

... survey of factors influencing the choice of product costing systems in UK organisations’, Management Accounting Research, December 2007, pp 399 – 424 A more extensive recent survey of management accounting ... cost of a motor car repair by a garage, both the cost of spare parts used in the repair and the cost of the mechanic’s time would be part of the direct cost of that repair Collecting elements of ... 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 be a cost that will...

Ngày tải lên: 20/06/2014, 23:20

... called Basic and ‘Super’ The business is able to sell these products at a price that gives a standard profit mark-up of 25 per cent of full cost Management is concerned by the lack of profit Full ... 50 hours of machining time, 10 hours of Machine Department direct labour and 20 hours of Fitting Department direct labour Athena Ltd charges a profit loading of 20% to the full cost of jobs to ... (additional cost of making one more) of each successive unit of output would become greater This would probably imply that increased activity would be causing a shortage of supply of some factor of production,...

Ngày tải lên: 20/06/2014, 23:20

... investigation of the evolution of management accounting practices’, University of Essex Working paper no 04/06, October 2004 A survey of the opinions of senior finance staff at 340 businesses of various ... representative of most of the functional areas of the business – marketing, production, human resources and so on Often, a budget officer is appointed to carry out the technical tasks of the committee, ... minority for the types of business in this survey Source: Abdel-Kader, M and Luther, R., ‘An empirical investigation of the evolution of management accounting practices’, University of Essex Working...

Ngày tải lên: 20/06/2014, 23:20

... them under another name Source: The Chartered Institute of Management Accountants and The Faculty of Finance and Management of the Institute of Chartered Accountants in England and Wales, Better ... 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, ... 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 from the sales volume shortfall,...

Ngày tải lên: 20/06/2014, 23:20

... Hopwood, A G., ‘An empirical study of the role of accounting data in performance evaluation’, Empirical Research in Accounting, a supplement to the Journal of Accounting Research, 1972, pp 156–82 ... shall now go on to consider how each of the appraisal methods works Accounting rate of return (ARR) ‘ The accounting rate of return (ARR) method takes the average accounting operating profit that the ... years’ time years’ time Project A £000 Cost of machine Operating profit after Operating profit after Operating profit after Operating profit after Operating profit after depreciation depreciation depreciation...

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 ... shows the results of a recent survey of UK manufacturing businesses regarding their use of investment appraisal methods REAL WORLD 8.9 A survey of UK business practice A survey of 83 of the UK’s largest ... means of assessing risk is through the use of statistical probabilities It may be possible to identify a range of feasible values for each of the items of input data and to assign a probability of...

Ngày tải lên: 20/06/2014, 23:20

... a code of ethics governing their behaviour Management accounting and financial accounting l Accounting has two main strands – management accounting and financial accounting l Management accounting ... value of providing additional management accounting information Figure 1.6 Relationship between cost and the value of providing additional management accounting information The benefits of management ... The management accountant must be aware of the impact of accounting measures of performance on human behaviour When designing accounting measures, it is important to try to ensure that all key aspects...

Ngày tải lên: 21/06/2014, 10:20

... 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 With the machine (number of baskets) ... 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 ... represents the amount of fixed cost, and this stays the same irrespective of the volume of activity Figure 3.1 Graph of fixed cost against the volume of activity As the volume of output increases,...

Ngày tải lên: 21/06/2014, 10:20

... called Basic and ‘Super’ The business is able to sell these products at a price that gives a standard profit mark-up of 25 per cent of full cost Management is concerned by the lack of profit Full ... (additional cost of making one more) of each successive unit of output would become greater This would probably imply that increased activity would be causing a shortage of supply of some factor of production, ... exploit the economies of scale at higher levels of output, making the marginal cost of each successive unit of output cheaper Perhaps higher volumes of output enable division of labour or more mechanisation...

Ngày tải lên: 21/06/2014, 10:20

... 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, ... 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 from the sales volume shortfall, ... end of April Purchases of raw materials will be on one month’s credit The cost of raw material is £40 a unit of finished product The direct labour cost, which is variable with the level of production,...

Ngày tải lên: 21/06/2014, 10:20

... 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 ... shows the results of a recent survey of UK manufacturing businesses regarding their use of investment appraisal methods REAL WORLD 8.9 A survey of UK business practice A survey of 83 of the UK’s largest ... means of assessing risk is through the use of statistical probabilities It may be possible to identify a range of feasible values for each of the items of input data and to assign a probability of...

Ngày tải lên: 21/06/2014, 10:20

... SUMMARY The main points of this chapter may be summarised as follows: Accounting rate of return (ARR) is the average accounting profit from the project expressed as a percentage of the average investment ... level of output and take account of a depreciation charge of £150,000 a year in respect of the new equipment The effect of purchasing the new equipment will be to increase the operating profit ... purchase of a fleet of street-cleaning vehicles at a total cost of £540,000 The vehicles have a life of four years and are likely to result in a considerable saving of labour costs Estimates of the...

Ngày tải lên: 21/06/2014, 10:20

... costs, profits and customer satisfaction ratings relating to the office Senior management views Enterprise as a confederation of small businesses and the role of head office is that of a ‘switching ... bias in accounting measurement Profit is understated as a result of judgemental write-offs (such as goodwill written off or research and development expenditure written off) and as a result of excessive ... operating and profit performance in 2006 led to improvement in the group’s economic value added and resulted in additions to the bonus bank of 69.4% of basic salary for A J Murray and 41.6% of basic salary...

Ngày tải lên: 21/06/2014, 10:20

... avoidance of risky courses of action – Excessive management ‘perks’ – Costly duplication of facilities and other losses of economies of scale – Divisions competing with each other to the detriment of ... of the products and services offered is of vital importance Measures such as number of product defects, percentage of scrap, number of warranty claims and number of customer complaints may be ... non-current assets of £400,000 and is expected to generate additional profits of £50,000 a year This business has a cost of capital of 12 per cent a year Try calculating the residual income of the division...

Ngày tải lên: 21/06/2014, 10:20