Cost accounting What's missing: 1. 2.Valuing and controlling inventory 3. 4.Controlling costs 5. Proving information for decision making
1. Determining costs and profits 3. Preparing budgets and forecast
Semi-Variable costs are _____ _______ in total ___ constant ___ ____
Neither constant in total or per unit >> not constant
Management accounting What's missing: Planning, ......, Controlling, Communicating, Motivsting
Management accounting What's missing: Controlling, coordinating, communicating, motivating
The 5 aims of management accounting
Planning Co-ordinating Controlling Communicating Motivating
Management accounting What's missing: Planning, controlling, coordinating, communicating
Management accounting What's missing: Planning, controlling, coordinating, motivating
Variable costs are constant ___ ____
Cost classification by behaviour
Fixed Variable Stepped Semi-Variable
What is the main reason for cost accounting?
To calculate the cost of a product and therefore sales price of an item
Fixed costs are constant in _____
The _______ ____ managers are accountable for the performance of _____ _______ as well as _____.
Investment centre capital employed profits
5 aims of cost accounting:
Determining cost and profit Valuing and controlling inventory Preparing budgets and forecast Controlling costs Providing information for decision making
Controlling: Comparing ____ to ______ expenditure helps to identify ___, __________ the causes and acting upon that _________ helps to _____ the activities of the _____
Plans; actual gaps Investigating investigation control
The main responsibility centres:
Profit centre Investment centre Cost centre Revenue centre
What is the Prime Cost per unit?
Total of all direct costs
Attributes of management information
Fit for purpose Accurate Relevant Timely Cost effective
Can there be more than one cost and revenue centres in one profit centre?
Financial Accounts are an ______ record of ______ which are presented in a ______ format laid down by ___. Such accounts are normally produced ___ or _____ a year and are primarily used by _______ _____, e.g. shareholders
External transactions Standard law once; twice external groups
Cost accounting What's missing: 1.Determining cost and profit 2.Valuing and controlling inventory 3.Preparing budgets and forecast 4. 5.Providing information for decision making
4. Controlling costs
Cost classification by function?
Production costs (cost of sales) Non-Production costs (distribution, administrative expenses etc.)
What's missing: 1. 2. Valuing and controlling inventory 3. Preparing budgets and forecast 4. Controlling costs 5.
1. Determining costs and profits 5. Providing information for decision making
Direct costs (Prime costs) are costs that ___ be ______ related to the cost unit
Are Prime costs direct or indirect costs?
Management accounts can be produced in ___ format that _____ __ ___ ________. They tend to be produced ____ _______ than financial accounts, usually ____ _ ____. They contain information required to run a business.
any useful to the organisation. More frequently, once a month
Indirect costs (Overheads) are costs that ____ be ______ to cost unit
Cannot be related
Cost classification by nature
Are overheads direct or indirect costs?
High-Low Method for calculating Semi-variable costs
Variable cost per unit = Change in total Cost / Change in level of production Fixed costs = total costs - (v.c. x units produced)
Cost classification by element are:
Materials Labour Expenses