Management Accounting and Costing
- Created by: anjumsattar
- Created on: 07-10-19 14:18
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- Management Accounting and Costing
- Piece rate, Time rate and bonus, Basic and Premium
- Inventory methods, LIFO, FIFO, AVCO
- Marginal costing and Absorption costing
- Absorption costing, Absorption rate, Budget FOH/Budg Activity level
- Machine hours, labour hours and units of production
- Fixed budget and Flexed Budget
- Flexed according to actual activity level
- Variance difference between flexed and actual budget on same level of activities
- Variance types, adverse and favourable
- Short term decision making
- Break-even in units = FC / Contribution (SP-VC)
- Target profit = FC + TP/Contribution
- Margin of safety in units = Budget sales - break-even sales
- Margin of safety as %, Budget sales - break sales / Budget sales x 100
- C/S or PV ratio= Contribution / Sale price x 100
- Sales value at break-even= Break-even in units x SP
- Long term decisions
- NPV + accept otherwise reject
- PBP shorter is better
- IRR NPV zero or more than zero
- Apportionment Bases
- Depreciation on basis of carrying value of machine (in general)
- Rent & Rates, floor area
- Indirect labour normally allocated.
- heat and light ( KHW if given otherwise area)
- Depreciation on basis of carrying value of machine (in general)
- Profit centre ( cost and revenue)
- Cost centre all costs
- Investment, Cost, profit and investment ( Return )
- Process costing
- Normal loss ( Input - expected output)
- Abnormal gain, ( Actual output is more than expected output)
- Cost per unit= Input cost- scrap value /expected out = cost per unit
- Management Accounting and Costing
- Piece rate, Time rate and bonus, Basic and Premium
- Inventory methods, LIFO, FIFO, AVCO
- Marginal costing and Absorption costing
- Absorption costing, Absorption rate, Budget FOH/Budg Activity level
- Machine hours, labour hours and units of production
- Fixed budget and Flexed Budget
- Flexed according to actual activity level
- Variance difference between flexed and actual budget on same level of activities
- Variance types, adverse and favourable
- Short term decision making
- Break-even in units = FC / Contribution (SP-VC)
- Target profit = FC + TP/Contribution
- Margin of safety in units = Budget sales - break-even sales
- Margin of safety as %, Budget sales - break sales / Budget sales x 100
- C/S or PV ratio= Contribution / Sale price x 100
- Sales value at break-even= Break-even in units x SP
- Long term decisions
- NPV + accept otherwise reject
- PBP shorter is better
- IRR NPV zero or more than zero
- Apportionment Bases
- Depreciation on basis of carrying value of machine (in general)
- Rent & Rates, floor area
- Indirect labour normally allocated.
- heat and light ( KHW if given otherwise area)
- Depreciation on basis of carrying value of machine (in general)
- Profit centre ( cost and revenue)
- Cost centre all costs
- Investment, Cost, profit and investment ( Return )
- Process costing
- Normal loss ( Input - expected output)
- Abnormal gain, ( Actual output is more than expected output)
- Cost per unit= Input cost- scrap value /expected out = cost per unit
- EOQ ( Economic order quantity
- Management Accounting and Costing
- EOQ ( Economic order quantity
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