Full List of Management Accounting for Decision Makers 12 doc

... non-financial information CHAPTER 1 INTRODUCTION TO MANAGEMENT ACCOUNTING 24 ‘ Management decisions requiring management accounting information Figure 1.9 Management accounting information is required ... role of management accounting. A useful start- ing point for our discussion is to acknowledge the general role of accounting, which is to help people make informed b...

Ngày tải lên: 21/06/2014, 10:20

... thought of additional points. Activity 2.7 continued JB Limited is a small specialist manufacturer of electronic components. Makers of aircraft, for both civil and military purposes, use much of its ... output. One of the aircraft makers has offered a contract to JB Limited for the supply, over the next 12 months, of 400 identical components. The data relating to the pro...

Ngày tải lên: 21/06/2014, 10:20

... standard profit mark-up of 25 per cent of full cost. Management is concerned by the lack of profit. Full cost for one unit of a product is calculated by charging overheads to each type of product ... is 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...

Ngày tải lên: 21/06/2014, 10:20

... The software has a life of two years and will then become obsolete. The cost of producing the software was £10,000. The client has agreed to pay a licence fee of £8,000 a year for the software ... £000 Immediately Cost of machine (100) 1 year’s time Operating profit before depreciation 20 2 years’ time Operating profit before depreciation 40 3 years’ time Operating profit before dep...

Ngày tải lên: 21/06/2014, 10:20

... Costs Materials 126 132 132 132 132 Labour 90 94 94 94 94 Overheads 45 47 47 47 47 Depreciation 120 120 120 120 120 Working capital 180 Interest on working capital 27 27 27 27 27 Write-off of development ... Conventional management accounting has been criticised, however, for failing to address fully the strategic aspects of managing a business. This criticism does not mean t...

Ngày tải lên: 21/06/2014, 10:20

... the office. Senior management views Enterprise as a confederation of small businesses and the role of head office is that of a ‘switching station’ for the best ideas. Source: Based on information ... (4.5) Operating profit 8.1 Income from investments 0.4 8.5 Interest payable (0.5) Ordinary profit before taxation 8.0 Restructuring costs (2.0) Profit before taxation 6.0 Tax (1.8) Prof...

Ngày tải lên: 21/06/2014, 10:20

... non-current assets of £400,000 and is expected to generate addi- tional 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 ... performance requires some basis for comparison. A particular division can be compared with that for: – Other divisions of the same business. – Previous performance...

Ngày tải lên: 21/06/2014, 10:20