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Page 1

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L 9:
I
ntr
odu ct
ion
to
ma n ag eme nt
accounti
ng

1.L ist
and expla in t
he 5 f
unc t
ions
of man agement.
a .P lanning
I nf
orma ti
on i
s r
equ i
red t
o help
de t
ermine…

Page 2

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C ost
accoun t
ing.

P rovi
des i
nformati
o n f
or
ma ki
n g
de ci
si
o ns.

D ecisi
ons may be
about acq ui
ri ng
&
fi
na nci
ng pr
oduct
capaci
ty,

making
cap i
tal
i
nv est
me…

Page 3

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3.Expl
ain
absorpt
ion c os t
ing
&
ma r
g i
nal
cost i
ng methods.

a.A bsor
pti
on cost
i n g
A l
l
ma nuf a cturing
costs
a r
e abso r
b ed
by t
he p r
od uct.
B oth…

Page 4

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Stock
val
uati
on s bal
ance
sheet
val
ue
of
net
asset
s i
s l
ower
wi
th
MC
t
han f
ull
cost
ing.


L 11:
CVP
analysi
s &
relevant
cost
for
decisi
on maki
n g.
1.L i
mit
ati
o ns
of
C VP…

Page 5

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4 NPV Net
ti
ng t
he PV
o f
i
nvest
me nt
's
cash
inf
lows
agai
nst

t
he
P V
of
cash out
fl
ows.

5 I
R R Di
scount
r
ate
that
'l
l
have
the
eff
ect
of
pr
oduci
ng
an
NPV…

Page 6

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Easy
to
comp ar
e I
R R
of
di
ff
erent
pr
oject
s

L 14:
Bu dgeti
ng
1 .D isc uss t
he p u r
p oses ,
a d va ntage s & li
mi ta ti on s
o f
bud get
ing .…

Page 7

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4.I
dent
if
y ways
w her
e wor
king
capi
tal
management
can
impr
ove
cash
posi
ti
on.







5.Expl
ain
impo rt
ance of
w or
king
capit
al
ma nageme nt
t o a
business.

I f
t
oo
mu ch i
s i
nve st
ed…

Page 8

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Sal
es
volume
vari
ance
Fl
exi
ble
budget
var
iance






























Page 9

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2.Expl
ain
the
reasons f
o r f
a vourable &
adverse
va r
iances.
a.R easons
for
advers e v ar
iances
S al
e s
volume :


P oor
per fo r
ma nce by sal
es dep artme nt

D eter
iora tion i
n marke t…

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