MANAGERIAL ACCOUNTINGManagerial Accounting
After completing the programme, the student should be able to:
Method of Assessment
The Effect of Management Style and Structure
B. INFORMATION
Sources of Information
Elements of Control
ManAc02.pdf
Financial Accounting
Management Accounting
Fixed and Variable
C. MANAGEMENT RESPONSIBILITY LEVELS
Fixed Costs
Variable Costs
Stepped Costs
Semi-Variable Costs
H. NUMERICAL EXAMPLE OF COST BEHAVIOUR
ManAc03.pdf
D. OVERHEAD AND OVERHEAD COST
What is “Overhead Cost”?
Classifying Overheads
Definition
D. OVERHEAD ABSORPTION
Predetermined Absorption Rates
Administration Overhead
Stock Valuations
Marginal Costing Example
Manufacturing for Profit
D. APPLICATION OF MARGINAL AND ABSORPTION COSTING
Where Sales and Production Differ
When Production is Constant but Sales Fluctuate
When Sales are Constant but Production Fluctuates
Where Resources are Limited
INTRODUCTION
The Debate About ABC
B. JOB COSTING
Job Costing Internal Services
Contract Costs
E. PROCESS COSTING
Method of Process Costing
Normal Wastage
H. JOINT PRODUCTS AND BY-PRODUCTS
Joint Products
Defective Units and Reworking
Cost Equations
Margin of Safety
B. BREAK-EVEN CHARTS (COST-VOLUME-PROFIT CHARTS)
Information Required
Assumptions and Limitations of Break-Even Charts
Interpretation of Break-Even Charts
Changes in Cost Structure
Contribution Break-Even Chart
Profit and Activity Level
Further P/V Calculations
D. SENSITIVITY ANALYSIS
ManAc09.pdf
Effective Decision-Making
B. DECISION-MAKING CRITERIA
Relevant Costing
Demand Analysis
Cost Considerations
C. PRACTICAL PRICING STRATEGIES
Full Cost Plus Pricing
Marginal Cost Plus Pricing
Minimum Pricing
Short- and Long-Term Policy
Pricing Short-Life Products
Pricing Special Orders
Types of Budget
Preparing a Budgeted Balance Sheet
Budget Review
C. BUDGETARY PROCEDURE
Budgetary Control Data
Administration Overheads Budget
Budgeted Balance Sheet
Problem of Long-Term Planning
Need to Update Budgets
Effects of Obsolescence on Budgets
C. BUDGET PROBLEMS AND METHODS TO OVERCOME THEM
Inflation and Rolling Budgets
Sub-Optimality and the Use of Management by Objectives (MBO)
D. ALTERNATIVE BUDGETARY APPROACHES
Reaction of Managers to Budget Levels
Motivation of Staff
Problem of Separate Budget Centres in Relation to Staff Motivation
Need for Staff Participation
Participation and Aspiration Levels
Definitions
Application of Standard Costing
Types of Variance
B. SETTING STANDARDS
Setting Standard Costs for Overheads
Standard Product Costs
Computerised Systems
Where Not to Use the Learning Curve
Further Example
INTRODUCTION
Variances Produced
B. TYPES OF VARIANCE
C. MARGINAL VERSUS ABSORPTION COSTING
Fixed Overhead Variances
Sales Revenue Variances
D. MIX AND YIELD VARIANCES
Materials Price, Mix and Yield Variances
Sales Variances
INTRODUCTION
Planning and Operational Variances in Relation to Contribution
Avoidable and Unavoidable Planning Variances
Subvariances
B. INVESTIGATION OF VARIANCES
Preliminary Points to Consider
Statistical Decision Theory
C. VARIANCE INTERPRETATION
Working Capital Cycle
Management of Stocks
Management of Debtors
Management of Cash
Management of Creditors
Income
Expenditure
ManAc17.pdf
A. SIMPLE INTEREST
B. COMPOUND INTEREST
Compound Interest Formula
D. TO FIND THE RATE OR THE NUMBER OF YEARS
E. DEPRECIATION
Sinking Funds
ManAc18.pdf
INTRODUCTION
Return per £1 Invested
C. INTRODUCTION TO DISCOUNTED CASH FLOW METHODS
Procedure
Net Present Value (NPV) Method
APPENDIX: PRESENT VALUES TABLES
Information for Decision Making
Report Writing