Resume
Summary Management accounting and corporate decision making
- Cours
- Établissement
- Book
A summary of the UU course 'Management accounting and corporate decision making'
[Montrer plus]
Livre connecté
Titre de l’ouvrage:
Auteur(s):
- Édition:
- ISBN:
- Édition:
Plus de résumés pour
-
Cost accounting(Kostenbeheersing) samenvatting (Nederlandse versie)
-
Aantekeningen Management Cost accounting 3
-
Samenvatting Horngren's Cost accounting A managerial emphasis 17e druk
Vendeur
S'abonner
simchakruithof
Avis reçus
Aperçu du contenu
Management accounting and corporate decision makingToetsing
Midterm 40%
Exam 60%
Week opzet
Dinsdag 13.15-15.00 lecture
Na lecture, voor tutorial: stof lezen en opdrachten maken
Maandag 13.15-15.00 tutorial (80% aanwezigheidsplicht)
Na tutorial, voor volgende tutorial: stof lezen en opdrachten maken
Donderdag 09.00-10.45 tutorial (80% aanwezigheidsplicht)
A five-step process:
Identify the problem and uncertainties
Obtain information
Make predictions about the future
Make decisions by choosing among alternatives
Implement the decision, evaluate performance, and learn
Two types of costs:
Actual cost: cost that has been incurred (past cost).
Budgeted cost: forecasted/predicted cost
Costs are direct or indirect. Using cost assignment, you assign the costs to the objects.
Cost accumulation is the collection of data on costs in an accounting system.
Reducing fixed costs requires active intervention on the part of managers, while variable
costs decrease when output decreases.
A cost driver is the cause of a change in the costs. For variable costs, this often is the amount
produced. Fixed costs don’t have a short-run cost driver.
A relevant range is a range, for example the range of the output produced in which the fixed
costs stay the same. Also the variable costs can change when the output produced changes.
So now there are four types of costs, let’s give examples using one specific Tesla Car as cost
object:
Direct variable costs: Tires used in assembly of the automobile
Indirect variable costs: Power costs at the Tesla Factory
Direct fixed costs: Salary of the supervisor on the specific Tesla model.
Indirect fixed costs: Annual depreciation costs for the Tesla Factory.
Three economy sectors:
Manufacturing-sector: purchasing materials and components and convert them into
finished goods Toyota, Samsung, Heinz, Lenovo. Those companies have three
types of inventory: direct materials inventory, work-in-process inventory, and
finished goods inventory.
, Merchandising-sector: purchasing and then sell products without changing their basic
form retail, distribution
Service-sector: providing services law, accounting, banks, insurers, transport,
advertising, television stations, internet service providers, travel agencies, healthcare
providers
Inventoriable costs = cost of goods sold from the moment the product is sold.
For manufacturing companies, all costs are inventoriable costs. First they are written as
work-in-process inventory assets, then as finished goods inventory assets. When the product
is sold it is no asset anymore, but an expense: the costs of goods sold.
Service sector companies have no inventoriable costs.
All the other costs in the income statement besides costs of goods sold are period costs (=
selling, general and administrative expenses = SG&A), such as design costs, marketing,
distribution, customer service. These are costs specific for the period, as managers expect
the costs to increase revenues in only that period, also like the labor cost of sales-floor
personnel. R&D is a difficult one, as innovation can be a long-term key driver of success, but
only in a few future periods. So they are considered to be period costs, as it’s uncertain how
successful it will be and difficult to determine in which future period you will benefit from it.
Gross margin = revenues – cost of goods sold
Operating income = gross margin – period costs
Contribution margin = total revenues – total variable costs
Per unit = selling price – variable cost per unit
Operating income = contribution margin – fixed costs
Contribution margin percentage = contribution margin / revenues
In manufacturing costing systems you have two types of costs:
Prime costs = direct material costs + direct manufacturing labor costs all direct
manufacturing costs
Conversion costs = direct manufacturing labor costs + manufacturing overhead costs
all manufacturing costs incurred to convert direct materials into finished goods
Direct manufacturing labor costs is in both the formulas, as it depends on how to monitor
workers’ roles and say whether the costs are direct or not.
Cost-plus agreement: a government contract based on the cost of a product plus a pre-
specified margin of profit, used when predicting the amount of money required to design,
fabricate, and test items is difficult.
Contribution income statement: a table showing revenues, variable costs, contribution
margin, fixed costs, and operating income, for different numbers of products sold.
There are three methods of showing Cost-volume-profit (CVP) analysis:
Equation method: calculating operating income =
revenues – variable costs – fixed costs
Contribution margin method: calculating operating income =
(contribution margin per unit * quantity of units sold) – fixed costs
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur simchakruithof. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €5,83. Vous n'êtes lié à rien après votre achat.
Peut-on faire confiance à Stuvia ?
4.6 étoiles sur Google & Trustpilot (+1000 avis)
73314 résumés ont été vendus ces 30 derniers jours
Fondée en 2010, la référence pour acheter des résumés depuis déjà 14 ans