Top PDF COST AND MANAGEMENT ACCOUNTING BY COLIN DRURY

COST AND MANAGEMENT ACCOUNTING BY COLIN DRURY

COST AND MANAGEMENT ACCOUNTING BY COLIN DRURY

"The opportunity cost of not studying this superb textbook is that you will have forgone a great chance to master the relevant calculation techniques embedded in the management accounting profession." Sophie Hoozee, Assistant Professor in Management Accounting, IESEG School of Management Lille-Paris, France "This excellent text is relevant to our courses, especially as the assessment section is referenced to different levels of difficulty. The inclusion of more Real World Views will greatly benefit my students, particularly as few have work experience in the areas covered." Francois Benade, Senior Lecturer in Management Accounting, UNISA, South Africa
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Cost-System Redesign at a Medium-Sized Company: Getting the Right Numbers to Drive Improvements in Business Performance

Cost-System Redesign at a Medium-Sized Company: Getting the Right Numbers to Drive Improvements in Business Performance

XYZ had been using a traditional cost system that was fairly rudimentary. In fact, the view of the owners was that the cost system was necessary only for compiling data for income-tax purposes and periodically for preparing financial reports (e.g., to support a bank loan request). As a result, the company had done no budget- ing or forecasting to track and control costs. Thus, XYZ’s existing cost system could not capture the under- lying economics of the company’s production function and, therefore, could not assist the company in respond- ing to the deteriorating situation in which it found itself. The plant manager had just completed an MBA course in management accounting and was intrigued by the prospect of introducing a rudimentary activity- based costing system at XYZ. This was the primary pro- posal that the three-person team dealt with over an
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Introduction to Cost and Management Accounting in a Global Business Environment

Introduction to Cost and Management Accounting in a Global Business Environment

In contrast, a predictor that has a direct cause and effect relation to a cost is called a cost driver. For example, production volume has a direct effect on the total cost of raw material used and can be said to “drive” that cost. Thus, pro- duction volume can be used as a valid predictor of that cost. In most situations, the cause–effect relationship is less clear because costs are commonly caused by multiple factors. For example, factors including production volume, material quality, worker skill levels, and level of automation affect quality control costs. Although determining which factor actually caused a specific change in a quality control cost may be difficult, any of these factors could be chosen to predict that cost if confi- dence exists about the factor’s relationship with cost changes. To be used as a pre- dictor, the factor and the cost need only change together in a foreseeable manner. Traditionally, a single predictor has been used to predict all types of costs. Ac- countants and managers, however, are realizing that single predictors do not nec- essarily provide the most reasonable forecasts. This realization has caused a move- ment toward activity-based costing (Chapter 4), which uses different cost drivers to predict different costs. Production volume, for instance, would be a valid cost driver for the cost of standard-sized containers of polyethylene material, but the number of vendors used might be a more realistic driver for WF&B’s purchasing department costs. 5
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Test Bank Cost Accounting 6e by Raiborn and Kinney  15 chapter

Test Bank Cost Accounting 6e by Raiborn and Kinney 15 chapter

Organizations tend to fund discretionary activities at different levels depending on the state of the economy and the original profit level. When management anticipates unfavorable economic conditions or downturns in profitability, discretionary costs may be reduced. Likewise, they may be increased as economic conditions improve. Total discretionary expenditures will also vary as certain activities lose their funding and new discretionary activities are initiated.

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Test Bank Cost Accounting 6e by Raiborn and Kinney  13 chapter

Test Bank Cost Accounting 6e by Raiborn and Kinney 13 chapter

Once upper-level managers impose their wills on lower-level managers, the autonomy of the lower- level managers is reduced. This situation is significant because managers should only be evaluated on the controllable aspects of operations. If upper management sets transfer prices, various divisional income measures (ROI, RI, etc.) are no longer fair bases on which to evaluate lower-level managers. Thus, intervention reduces both the authority to act and the subsequent responsibility of lower managers.

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Test Bank Cost Accounting 6e by Raiborn and Kinney  9 chapter

Test Bank Cost Accounting 6e by Raiborn and Kinney 9 chapter

34. Harris Manufacturing incurs annual fixed costs of $250,000 in producing and selling a single product. Estimated unit sales are 125,000. An after-tax income of $75,000 is desired by management. The company projects its income tax rate at 40 percent. What is the maximum amount that Harris can expend for variable costs per unit and still meet its profit objective if the sales price per unit is estimated at $6?

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Test Bank Cost Accounting 6e by Raiborn and Kinney  18 chapter

Test Bank Cost Accounting 6e by Raiborn and Kinney 18 chapter

performance with regard to environmental issues and management of environmental cost. In the future, investors are likely to evaluate a company's environmental track record along with its financial record when making financial decisions. Primary environmental issues are energy consumption and pollution.

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Test Bank Cost Accounting 6e by Raiborn and Kinney  14 chapter

Test Bank Cost Accounting 6e by Raiborn and Kinney 14 chapter

The predicted useful life of the equipment is 10 years, with zero scrap value. The equipment will easily serve the same volume that the lunch counter handled. A catering company will completely service and supply the machines. Prices and variety of food and drink will be the same as those that prevailed at the lunch counter. The catering company will pay 5 percent of gross receipts to the Reed Company and will bear all costs of food, repairs, and so forth. The part-time employee will be discharged. Thus, Reed Company’s only cost will be the initial outlay for the machines.
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Test Bank Cost Accounting 6e by Raiborn and Kinney  6 chapter

Test Bank Cost Accounting 6e by Raiborn and Kinney 6 chapter

If spoilage is normal and continuous, the calculations for EUP do not include this spoilage (method of neglect), and the good units simply absorb the cost of such spoilage. If spoilage is normal and discrete, the equivalent units are used in the EUP calculations, and the spoilage cost is assigned to all units that passed through the inspection point during the current period. If the spoilage is abnormal and either discrete or continuous, the equivalent units are used in EUP calculations and costed at the cost per EUP; the total cost is then assigned to a loss account.
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the delicate interface between management accounting and marketingmanagement 2168 9601 1000179

the delicate interface between management accounting and marketingmanagement 2168 9601 1000179

Knowing the monetary value of a brand is important in speciic other situations than daily marketing routine, such as mergers or acquisitions. An example is that three Dutch entrepreneurs bought the brand name of the Dutch department store V&D in June 2016, only two months ater V&D got bankrupt. Several institutions regularly publish rankings of the value of brands. In their published list in 2014 Milward Brown for example computed the ‘value of Google’ to be about $568 billion, the most valuable brand in 2014”. Although interesting to know, for marketing research these data are hardly useful for two reasons. First, sometimes the igures are computed by research or consultancy agencies that are not willing to provide the way in which the igures are constructed. So, there is a lack of transparency. Second, the yearly availability of these igures is far too less to have a suicient data set for statistical inferences about causality. Compare this with the big data sets available from for example social media consumer behavior, or from online buyer behavior or even from simply buying products in stores leading to large data sets with daily scanner data, which was the ‘big data issue’ at the end of the previous century when online media and online big data did not exist. Due to the very limited availability of monetary brand data, until now marketing researchers are hardly able to relate marketing investments to monetary brand
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THE IMPACT OF MANAGEMENT ACCOUNTING INFORMATION SYSTEM AND ENVIRONMENTAL UNCERTAINTY ON THE QUALITY OF MANAGEMENT ACCOUNTING INFORMATION

THE IMPACT OF MANAGEMENT ACCOUNTING INFORMATION SYSTEM AND ENVIRONMENTAL UNCERTAINTY ON THE QUALITY OF MANAGEMENT ACCOUNTING INFORMATION

One work program to achieve these objectives is increasing the use of information systems. This increased information’s value within the company will offer new opportunities to the business [1][2]. The information system is a fairly important part of the organization's control system. Therefore, it needs to be managed well, so it is expected to contribute positively to support the success of the organization's control system. Romney [3] states that the main benefits of the information are to reduce uncertainty, decision support, and encourage better planning and scheduling of work activities.
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Prodi PPAK Dr. Gede Harja W

Prodi PPAK Dr. Gede Harja W

Competencies of Chartered Accountant IAI: Professional Level Application, Evaluation, Integration Foundation Level: Financial accouinting, Cost and Management Accounting, Auditin[r]

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5. Forum Bid. Ilmu Akt. Manajemen_Grahita Chandrarin, Mahfud Sholihin & Dian Agustia.

5. Forum Bid. Ilmu Akt. Manajemen_Grahita Chandrarin, Mahfud Sholihin & Dian Agustia.

Institute of Chartered Accountants in England and Wales (ICAEW), salah satu lembaga sertifikasi akuntan internasional telah mencantumkan materi Governance, Sustainablity, dan Corporate Responsibilities sebagai salah satu spesifikasi yang harus dikuasai oleh para akuntan.

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Test Bank Cost Accounting 6e by Raiborn and Kinney  16 chapter

Test Bank Cost Accounting 6e by Raiborn and Kinney 16 chapter

Seating Concepts has just finished its first year of business. Seating Concepts makes decorative outdoor furniture. The firm manufactured 2,500 pieces of furniture during the year: 2,400 were sold at garden centers for $456,000; 100 pieces were defective and could only be sold as scrap metal (25 pounds each and can be sold for $2.50 per pound). No defective units could be reworked. During the year the following costs were incurred:

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Test Bank Cost Accounting 6e by Raiborn and Kinney  2 chapter

Test Bank Cost Accounting 6e by Raiborn and Kinney 2 chapter

The relevant range is that range of activity over which a variable cost remains constant on a per-unit basis and a fixed cost remains constant in total. Managers can review the various ranges of activity and the related effects on variable cost (per-unit) and fixed cost (in total) to determine how a change in the range will affect costs and, thus, the firm's profitability.

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How Groups Produce H i g h e r-Quality Balanced Scorecards Than

How Groups Produce H i g h e r-Quality Balanced Scorecards Than

implementation within an organization. For example, a review of the many re s e a rch studies that investigated the impact of employee participation on the annual budgeting process suggests that groups add value to the budgeting process only when individuals in the gro u p possess information about the business that is not known by others involved in the budgeting pro c e s s . This suggests that groups involved in developing a bal- anced score c a rd will add value to its components if they have a deep and clear understanding of what leads to business success. The re s e a rch conducted on budgeting also found that even when individuals do not make sig- nificant contributions to the budget’s content, individ- ual participation leads to higher levels of personal satisfaction with the budget and a greater commitment to achieve the budgetary goals. 3 This suggests that an
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Cost Management Accounting & Control, Chapter 9

Cost Management Accounting & Control, Chapter 9

Variance Analysis and Accounting: Direct Materials and Direct Labor • Direct materials price variances can be computed at the point – when the direct materials are issued into producti[r]

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Skepticism and the Management Accountant: Insights for Fraud Detection

Skepticism and the Management Accountant: Insights for Fraud Detection

shows it is far more likely that fraud will be uncovered by employees of the organization rather than by the external auditors. While internal auditors faired signifi- cantly better, detecting 24% of fraud cases, nearly 40% were discovered through a tip. Of the tips that led to the discovery of fraud, 60% came from company employees. The importance of employees as a source of fraud detection may be understated in these findings. Another 16% of the tips came from anonymous hot- lines, which are widely used by employees. The abun- dance of tips adds credibility to the Sarbanes-Oxley Act (SOX) mandate that audit committees establish internal reporting mechanisms such as hotlines.
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Cost Management Accounting & Control, Chapter 11

Cost Management Accounting & Control, Chapter 11

Functional-based system: Variable conversion activity rate: $40 per direct labor hour Material usage rate: $8 per part ABC system: Labor usage $10 per direct labor hour Material usage[r]

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