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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

1

Semi-Variable costs are _____ _______ in total ___ constant ___ ____

Neither constant in total or per unit >> not constant

3

Management accounting What's missing: Planning, ......, Controlling, Communicating, Motivsting

Co-ordinating

4

Management accounting What's missing: Controlling, coordinating, communicating, motivating

Planning

5

The 5 aims of management accounting

Planning Co-ordinating Controlling Communicating Motivating

6

Management accounting What's missing: Planning, controlling, coordinating, communicating

Motivating

7

Management accounting What's missing: Planning, controlling, coordinating, motivating

Communicating

8

Variable costs are constant ___ ____

Per Unit

10

Cost classification by behaviour

Fixed Variable Stepped Semi-Variable

11

What is the main reason for cost accounting?

To calculate the cost of a product and therefore sales price of an item

12

Fixed costs are constant in _____

In total

13

The _______ ____ managers are accountable for the performance of _____ _______ as well as _____.

Investment centre capital employed profits

15

5 aims of cost accounting:

Determining cost and profit Valuing and controlling inventory Preparing budgets and forecast Controlling costs Providing information for decision making

15

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

16

The main responsibility centres:

Profit centre Investment centre Cost centre Revenue centre

16

What is the Prime Cost per unit?

Total of all direct costs

17

Attributes of management information

Fit for purpose Accurate Relevant Timely Cost effective

18

Can there be more than one cost and revenue centres in one profit centre?

Yes

19

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

19

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

21

Cost classification by function?

Production costs (cost of sales) Non-Production costs (distribution, administrative expenses etc.)

26

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

27

Direct costs (Prime costs) are costs that ___ be ______ related to the cost unit

Can directly

28

Are Prime costs direct or indirect costs?

Direct costs

29

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

30

Indirect costs (Overheads) are costs that ____ be ______ to cost unit

Cannot be related

31

Cost classification by nature

Direct Indirect

32

Are overheads direct or indirect costs?

Indirect

34

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)

35

Cost classification by element are:

Materials Labour Expenses