Cost Accounting An Introduction
|
|
- Christiana McDowell
- 6 years ago
- Views:
Transcription
1 Cost Accounting An Introduction IPCC Paper 5: Cost Accounting Chapter 1 BY CA. B.N. Pattabhi, M.Com, FCA
2 Salutations DEDICATED TO MY NOBLE, EVER LOVING, EVER INSPIRING MOTHER LALITAMMA
3 Learning Objectives
4 Introduction to Cost Accounting Cost Accounting is basically a MIS i.e. A Management Information System It s an aid to the Management in its Primary Function of Decision Making It aims at Ascertainment of Cost for the purpose of Cost Analysis and Control
5 Evolution of Cost Accounting An Intro.
6 Before Industrial Revolution Seller s Market since Skilled Labourers were very few and Buyers were unlimited i.e Low Production High Demand Price was determined by Sellers No Competition because of High Demand Hence cost was not relevant
7 Industrial Revolution - Initial Stage Automation of Production Process Limited Production but still short of Demand Whatever was produced was Sold Prices were still high and unrelated to cost Progression towards Large Scale Production and increase in efficiency
8 Developments in the Field of Management Different concepts evolved in the field of Management like 1 Scientific Management Theory 2 Time & Motion Study 3 Functional Departmentalisation 4 Specialisation etc
9 Industrial Revolution - Maturity Stage Oragnisations mastered Efficient Processes Scaled up production to derive Economies of Large Scale Operation For the First Time Supply was more than Demand In fact there was a glut in the market Organisations Started Competing for Market Share Price Competition crept in based on Financial Statements Price Competition turned into a cut throat price competition based on historical Info Organisations survived for a year or two based on reserves
10 Industrial Revolution-Maturity Stage 2 Organisations started going Bankrupt Even though the efficiency levels were high i.e. upwards of 99% and Production Processes were highly efficient still Organisations went bankrupt Management scientists or Managers started searching for the reasons of bankruptcy Managers zeroed in on the reasons for bankruptcy i.e Fixing the price based on earlier periods Financial Statements The information based on which pricing decisions were taken were old and not up to date Managers started realising that the basis of their decisions were incorrect The need for an efficient MIS was being felt by managers across the cadres An MIS in tune with the changes / trends in the management was the need of the hour
11 Financial Accounting System Limitations It s a post mortem of transactions No mechanism to consider the future trend i.e. no mechanism for precise estimates No mechanism for considering the present trends / changes in the situations Information presented is historical and based on historical cost basis Stock Records do not form part of Financial Records Concept of Work in progress does not exist Concept of issue and consumption does not exist The time gap between recording and reporting is very long
12 Evolving Cost Accountancy To meet the changing needs of the Managers a new system of MIS emerged known as Cost Accountancy The New MIS had all the mechanisms and techniques to overcome the shortcomings of Financial Accounting System Cost Accountancy is Forward Looking, Analytical and Current
13 Definitions Cost Accounting
14 Cost It is the sum total of expenditure Incurred or Attributable to produce an article or thing or render a Service. The expenditure may be real or implied The payment is not a criteria To Sum up it s the aggregate of value of all factors of productions used to produce an article or a thing or render a Service
15 Costing Costing is a term used to collectively refer to all those techniques, Processes and activities that are used to ascertain cost It is the process of ascertainment of cost It includes all those activities which are performed to collect information for the ascertainment of cost
16 Cost Accounting It is the process of accounting for costs or the physical process of collecting and recording of expenditure & income, identifying the bases for collecting of information and culminates in preparation of reports and statements that are used for ascertainment and control of costs
17 Cost Accountancy It is the process of applying costing and cost accounting principles, methods, techniques and processes to the Science art and practice of Ascertainment of cost for the purpose of analysis and control of cost. It deals with preparation of MIS reports that form the basis of managerial decision making
18 Scope and Objective Of Cost Accounting
19 Scope Cost Book Keeping Cost System Cost Ascertainment Cost Analysis Cost Comparison Cost Control Cost Reports
20 Objectives & Scope The Primary objective of Cost Accounting is to provide the management with analytical, accurate and reliable reports & information (MIS Report) based on which management can take informed decisions In a nutshell Cost Accounting is an Aid or tool in the hands of Management which facilitates decision making
21 Objectives & Scope - 2 Theoretically the objectives are Ascertainment of Cost Determination of Selling Price Cost Control and Cost Reduction Ascertaining the profit of each activity Assisting Management in Decision Making
22 Objectives & Scope - 3 Ascertainment of cost Post Costing Ascertainment of cost based on or by analysing Financial Information is called as post costing, it is helpful in Cost Plus Contracts, wherein the price will have to be determined based on cost plus an agreed rate of profit on cost
23 Objectives & Scope - 4 Continuous Costing It is a process which aims at collecting costs as and when they are incurred. It s a process which involves a careful estimation of certain Implied costs such as overheads etc. This system of costing aims at ascertainment of cost of completion simultaneously with the completion of the production/job
24 Objectives & Scope - 5 Determination of Selling Price Cost of Production is one of the factors for determining the price of a product or service. Cost Accounting helps in determining the Selling Price of a product or Service It is pertinent to note here that the market maxim is Cost is a fact, Price is a policy
25 Objectives & Scope - 6 Cost Control One of the objectives of Cost Accounting is cost control. Once the cost is ascertained the next step is to analyse such costs with a view to exercise control over them by clearly establishing objectives & achieving optimum efficiency and comparing the performance with the objectives set
26 Objectives & Scope - 7 Cost Reduction It s defined as achieving real and permanent reduction in the unit cost of manufacturing a product or rendering a service without compromising on either the Quality of the product or impairing the suitability of the product for the intended use
27 Objectives & Scope - 8 Cost Reduction Continued It also implies retaining of the essential characteristic features & quality of the product or service. It is achieved through constant innovation and improvisation of processes, so that there is a permanent and real reduction in cost
28 Cost Control & Cost Reduction Cost Control It maintains cost Aims at achieving lowest possible cost Focuses on past & Present It is preventive in nature It has a limited target Cost Reduction Aims at reducing the cost Aims at optimising the cost by challenging the practices Focuses on present & future It is corrective in nature It is a continuous process
29 Objectives & Scope - 9 Ascertainment of Profit of each activity Since cost information is collected activity wise ascertainment of profit activity wise becomes easier. In financial accounting system it may not be possible to identify the profit of each activity. In fact profit can be ascertained for each activity level.
30 Objectives & Scope - 10 Assisting Management in Decision Making This is one of the most important & relevant objectives of Cost Accounting. In fact it is the genesis of Cost Accounting. It is this need of the management for reliable and accurate information for basing its decision that gave birth to a separate system of accounting called Cost Accounting
31 Cost Centre A Cost Centre is defined as a person, location or an item of equipment or a combination of these for which cost is ascertained for the purpose of analysis and control. Cost Centre can be Personal or Impersonal
32 Cost Unit It is a physical measure or unit of product, Service or Time or a combination of these for which costs may be ascertained. The cost unit may differ from product to product and service to service depending on the inherent nature of the product or service or the process
33 Cost Object Anything for which a separate measurement of cost is intended is called as a cost object. The cost object may be a Product, Service, Project, Customer, an Activity etc A Cost object is used to ascertain the selling price of the Product or Service
34 Elements of Cost These are akin to heads of account in financial accounting Elements of cost are those items of cost which form a significant portion of the total cost, which deserve to be mentioned separately. In a nutshell elements of cost are those expenses incurred which are separately identified in ascertaining the cost
35 Cost Accounting System
36 Installation of a Costing System The prime considerations for installation of a costing system are Economic Viability i.e. whether the cost incurred on installing a costing system justify the benefits derived there from. Managements attitude towards having a sound MIS. If the management is averse to using an MIS report, then installing a costing system doesn t make sense
37 Factors to be considered Objective Type of Business General Organisation Technical Details Change in Operations Method of Maintenance of Cost Records Information Accuracy Informative and Simple
38 Essentials of a Good Costing System Informative and Simple Accuracy Support from Management Cost Benefit Precise Information Procedure Trust
39 Cost Accounting - Relationship An Intro.
40 Relationship of Cost Accounting With Financial Accounting, Management Accounting and Financial Management Cost Accounting is a branch of accounting, while Financial Accounting aims at preparation and presenting General Purpose Financial Statements, Cost Accounting aims at preparation and presentation of MIS reports which are for the exclusive use of Management.
41 Relationship Continued Management Accounting Aims at analysing the Financial Statements and providing inputs to the management based on the analysis and focuses on certain set parameters such as Gross Profit, Operating Margin, etc Whereas cost accounting is a real time exercise which furnishes information on income & Expenditure as and when it is incurred
42 Relationship Continued Financial Management aims at maximising the wealth of an organisation through profit maximisation whereas cost accounting aims at ascertainment of cost for the purpose of Analysis, control and reduction. To sum up cost accounting is an additional supplementary and indispensible source of information for the management in its decision making process
43 Classification of Cost On the basis of elements Viz Material Direct & Indirect Labour Direct & Indirect Expenses Direct & Indirect Overheads Production/works/Factory Administration, Selling & Distribution
44 Classification of Cost continued By Function Prime Cost Factory Cost Cost of Production Cost of Goods Sold Cost of Sales
45 Classification of Cost continued On the basis of variability or behaviour Fixed Cost Variable Cost Semi variable Cost By Controllability Controllable Cost Uncontrollable Cost
46 Classification of Cost continued By Normality Normal Cost Abnormal Cost
47 Lesson Summary
48 Thank You
IPCC, Paper 3, Costing, Chapter 4 B.N.Pattabhi., M.Com, FCA
IPCC, Paper 3, Costing, Chapter 4 B.N.Pattabhi., M.Com, FCA Dedicated to my Noble, Ever Loving, Ever Inspiring Parents Lalitamma & Nanjappa 1 2 3 4 5 Understanding the Meaning of Overheads Difference between
More information1 Cost Accounting - Basic Concepts & Treatment of Special Items
1 Cost Accounting - Basic Concepts & Treatment of Special Items This Chapter Includes: Cost Accounting : Necessity & Importance; Cost Department, Costing System, Design of Forms & Records, Treatment of:
More informationCOST CONCEPTS Introduction: Cost: Types of cost: Direct cost or explicit cost:
COST CONCEPTS Introduction: A firm carries out business to earn maximum profits. Profits are the revenues collected by a business firm after production and sale of their goods and services. But to gain
More informationBangalore South Campus Hosur road, 1km before Electronic City, Bengaluru -100
KEY - INTERNAL ASSESSMENT TEST 1 Date : 20/08/2018 Subject & Code : Cost Management Name of faculty : Dr.R.Duraipandian Note: Answer all questions (17MBAFM305) Max Marks : 40 Section : Finance Time: 8:30
More informationManagerial Economics, 01/12/2003. A Glossary of Terms
A Glossary of Terms The Digital Economist -A- Abundance--A physical or economic condition where the quantity available of a resource exceeds the quantity desired in the absence of a rationing system. Arbitrage
More informationModule 10 : Product and Process Costing. Lecture 1 : Product and Process Costing. Objectives
Module 10 : Product and Process Costing Lecture 1 : Product and Process Costing Objectives In this lecture you will learn the following Introduction. Product costing. Job costing. Process costing. Cost
More informationexecutive acumen programme Leading to the ILM Level 5 Diploma in Leadership and Management
executive acumen programme Leading to the ILM Level 5 Diploma in Leadership and Management Our approach We are a passionate coaching company who aim to help everyone achieve their potential. Everything
More informationShort-Run Costs and Output Decisions
Semester-I Course: 01 (Introductory Microeconomics) Unit IV - The Firm and Perfect Market Structure Lesson: Short-Run Costs and Output Decisions Lesson Developer: Jasmin Jawaharlal Nehru University Institute
More informationWelcome to: FNSACC507A Provide Management Accounting Information
Welcome to: FNSACC507A Provide Management Accounting Information Week 1 Chapter 1 COST CONCEPTS FNSACC507A Provide Management Accounting Information By the end of this lesson, you will be able to 1. Explain
More informationP2 Performance Management
Performance Pillar P2 Performance Management Examiner s Answers SECTION A Answer to Question One (a) The standard cost of the actual hours worked was 3,493-85 = 3,408. At 12 per hour the actual hours worked
More informationSUGGESTED ANSWERS QUESTIONS SET AT THE INSTITUTE S EXAMINATIONS MAY, 1981 NOVEMBER, 2008 A COMPILATION PROFESSIONAL EDUCATION (COURSE II)
SUGGESTED ANSWERS TO QUESTIONS SET AT THE INSTITUTE S EXAMINATIONS MAY, 1981 NOVEMBER, 2008 A COMPILATION PROFESSIONAL EDUCATION (COURSE II) PAPER 4A : COST ACCOUNTING BOARD OF STUDIES THE INSTITUTE OF
More informationMARGINAL COST OR VARIABLE COST OR DIRECT COST
MARGINAL COST OR VARIABLE COST OR DIRECT COST Marginal cost is the variable cost of one more unit of a product or service. As such, it arises from additional increments of output. Marginal costing considers
More informationIntroduction to Cost Accounting. Samir K Mahajan
Introduction to Cost Accounting Samir K Mahajan MEANING OF COST, COSTING AND COS ACCOUNTING Cost is amount of resources given up in exchange for some goods and services. The resources given up are expressed
More informationIntroduction to Cost Accounting. Samir K Mahajan
Introduction to Cost Accounting Samir K Mahajan MEANING OF COST, COSTING AND COS ACCOUNTING Cost is amount of resources given up in exchange for some goods and services. The resources given up are expressed
More informationIntroduction to Cost Accounting. Samir K Mahajan
Introduction to Cost Accounting Samir K Mahajan MEANING OF COST, COSTING AND COS ACCOUNTING Cost is amount of resources given up in exchange for some goods and services. The resources given up are money
More information1 Cost Accounting - Basic Concepts &
1 Cost Accounting - Basic Concepts & Treatment of Special Items This Chapter Includes: Cost Accounting : Necessity & Importance; Cost Department, Costing System, Design of Forms & Records, Treatment of
More informationQuestion Paper Accounting For Decision Making - II (MB2D2): January 2009
Question Paper Accounting For Decision Making - II (MB2D2): January 2009 1. Prime cost plus variable overheads is Answer all 70 questions. Marks are indicated against each question. Total Marks : 100 Total
More informationType of Inventory. OVERVIEW In case of manufacturing concerns. Stores and Spares. Formulae for Determining Cost of Inventory
CHAPTER 4 INVENTORIES LEARNING OUTCOMES After studying this chapter, you will be able to: Understand the meaning of term 'Inventory'. Learn the technique of Specific identification method, FIFO, Average
More informationBasic Costing Guidance
Basic Costing Guidance The Association of Accounting Technicians April 2010 Basic costing (BCCG) Introduction Please read this document in conjunction with the standards for all relevant units. Basic Principles
More informationChapter 2 An Introduction to Cost Terms and Purposes
Chapter 2 An Introduction to Cost Terms and Purposes Copyright 2003 Pearson Education Canada Inc. Slide 2-15 Costs and Cost Objects Cost a resource sacrificed or foregone to achieve a specific objective
More informationHUM 211: Financial & Managerial Accounting
Chapter 20 HUM 211: Financial & Managerial Accounting Lecture 08: Managerial Accounting (Concepts & Principles) Masud Jahan Department of Science and Humanities Military Institute of Science and Technology
More informationModel Answer / Suggested Solution. Subject: Financial and Cost Accounting
Model Answer / Suggested Solution Code AR-7334 M.Com. II Semester Subject: Financial and Cost Accounting Que. 1. Short answers: i. Every businessman has to incur some expenses and he makes some income
More informationCAS -7 COST ACCOUNTING STANDARD ON EMPLOYEE COST
Cost Accounting Standards Board CAS -7 COST ACCOUNTING STANDARD ON EMPLOYEE COST The following is the COST ACCOUNTING STANDARD 7 (CAS - 7) issued by the Council of The Institute of Cost Accountants of
More informationProcess Costing Joint and By Product CA Past Years Exam Question
CA R. K. Mehta Process Costing Joint and By Product CA Past Years Exam Question Question : 1 May, 2012 A product passes through two processes A and B. During the year, the input to Process A of Basic raw
More informationCOST AND MANAGEMENT ACCOUNTING
EXECUTIVE PROGRAMME COST AND MANAGEMENT ACCOUNTING SAMPLE TEST PAPER (This test paper is for practice and self study only and not to be sent to the institute) Time allowed: 3 hours Maximum marks : 100
More information1 Introduction to Cost and Management Accounting
1 Introduction to Cost and Management Accounting Concept of Cost Evolution of Cost Accounting Costing, Cost Accounting and Cost Accountancy Objectives, Importance and Scope of cost accounting Classifications
More informationMINISTRY OF EDUCATION
Republic of Namibia MINISTRY OF EDUCATION NAMIBIA SENIOR SECONDARY CERTIFICATE (NSSC) ECONOMICS SYLLABUS HIGHER LEVEL SYLLABUS CODE: 8337 GRADES 11-12 FOR IMPLEMENTATION IN 2010 FOR FIRST EXAMINATION IN
More informationSite visit to IMI Brno
Site visit to IMI Brno IMI Precision Engineering Mark Selway, IMI Group CEO 9 June 2015 Fix and focus strategy Capitalise on significant potential for accelerated growth Industrial Automation Commercial
More informationA Glossary of Macroeconomics Terms
A Glossary of Macroeconomics Terms -A- Absolute Advantage A comparison of input requirements between two regions or countries where one country can produce a given level of output with less input relative
More informationLevel 5 NVQ Diploma in Management and Leadership Complete
Learner Achievement Portfolio Level 5 NVQ Diploma in Management and Leadership Complete Qualification Accreditation Number: 601/3550/5 Version AIQ004461 Active IQ wishes to emphasise that whilst every
More informationIntermediate Macroeconomic Theory, 01/07/2003. A Glossary of Macroeconomics Terms
A Glossary of Macroeconomics Terms The Digital Economist -A- Absolute Advantage A comparison of input requirements between two regions or countries where one country can produce a given level of output
More informationThe Four Main Market Structures
Competitive Firms and Markets The Four Main Market Structures Market structure: the number of firms in the market, the ease with which firms can enter and leave the market, and the ability of firms to
More informationInstitute of Certified Management Accountants of Sri Lanka Operational Level November 2018 Examination. Management Accounting (MA / OL 1-201)
Copyright Reserved Serial No Institute of Certified Management Accountants of Sri Lanka Operational Level November 2018 Examination Examination Date : 17 th November 2018 Number of Pages : 06 Examination
More informationPart 1 Study Unit 6. Cost Allocation Techniques Jim Clemons, CMA
Part 1 Study Unit 6 Cost Allocation Techniques Jim Clemons, CMA Absorption versus Variable Costing You need to be able to answer the following: Under absorption costing, which cost are considered product
More informationWHAT IS A COMPETITIVE MARKET?
Chapter 14. Firms in Competitive Markets WHAT IS A COMPETITIVE MARKET? A perfectly competitive market has the following characteristics: There are many buyers and sellers in the market. small relative
More informationASSIGNMENT SOLUTIONS GUIDE ( ) E.C.O.-10
1 ASSIGMET SOLUTIOS GUIDE (2016-2017) E.C.O.-10 Elements of Costing Disclaimer/Special ote: These are just the sample of the Answers/Solutions to some of the Questions given in the Assignments. These Sample
More informationCHAPTER 6 INTRODUCTION TO GENERAL MANAGEMENT
CHAPTER 6 INTRODUCTION TO GENERAL MANAGEMENT Chapter content Introduction The role of management A definition of management Different levels and functional areas of management in businesses Skills needed
More informationThe Evolution of Management Theory
The Evolution of Management Theory Chapter 2 2.1: Provide some examples of early management practice. Pyramid Construction: Managers organised the workers and told them what to do, organised them and oversaw
More informationSri Lanka Accounting Standard LKAS 2. Inventories
Sri Lanka Accounting Standard LKAS 2 Inventories CONTENTS paragraphs SRI LANKA ACCOUNTING STANDARD LKAS 2 INVENTORIES OBJECTIVE 1 SCOPE 2 5 DEFINITIONS 6 8 MEASUREMENT OF INVENTORIES 9 33 Cost of inventories
More informationCost concepts, Cost Classification and Estimation
Cost concepts, Cost Classification and Estimation BY G H A N E N DR A F A G O Cost Concepts Cost refers the amount of expenses spent to generate product or services. Cost refers expenditure that may be
More informationMINISTRY OF EDUCATION
Republic of Namibia MINISTRY OF EDUCATION NAMIBIA SENIOR SECONDARY CERTIFICATE (NSSC) ECONOMICS SYLLABUS HIGHER LEVEL SYLLABUS CODE: 8337 GRADES 11-12 FOR IMPLEMENTATION IN 2006 FOR FIRST EXAMINATION IN
More informationACTIVITY BASED COSTING
CHAPTER 5 ACTIVITY BASED COSTING LEARNING OUTCOMES r Discuss problem of traditional costing system. r Discuss usefulness of Activity Based Costing(ABC). r Discuss Cost Allocation under ABC. r Discuss Different
More information(4 Marks) (b) Enumerate the industrial applications of linear programming.
47 PAPER 5 : COST ACCOUNTING & COST SYSTEMS MAY 2003 Question No.1 is compulsory Answer any four questions from the rest. Working notes should form part of the answer. Make assumptions wherever necessary
More informationIPCC November STRATEGIC MANAGEMENT Test Code INJ 8010 Branch (MULTIPLE) (Date : ) All questions are compulsory.
IPCC November 2017 STRATEGIC MANAGEMENT Test Code INJ 8010 Branch (MULTIPLE) (Date : 11.06.2017) (50 Marks) Note: All questions are compulsory. Question 1 (3 marks each) (a) Bargaining power of suppliers:
More informationFFQA 1. Complied by: Mohammad Faizan Farooq Qadri Attari ACCA (Finalist) Contact:
FFQA 1 Objective of IAS 2 The objective of IAS 2 is to prescribe the accounting treatment for inventories. It provides guidance for determining the cost of inventories and for subsequently recognising
More information2010 CMA Part 1 Section C Process Costing Anderson Company
Estimated Time: 40 minutes is a mature firm that manufactures a variety of high quality sports clothing used by college and high school football programs throughout the country. During the last year, the
More informationSECTION I. Sh ,000 10,200 16,680 14,000 2,600 4,200 13,300 2,520 1,600 10,500 12, ,000
QUESTION ONE SECTION I Wangu Manufacturing Company Ltd. is located at the industrial area in Nairobi. The company uses four different machine groups, A, B, C and D in its manufacturing process. The overhead
More informationCAS - 15 COST ACCOUNTING STANDARD ON SELLING AND DISTRIBUTION OVERHEADS
CAS - 15 COST ACCOUNTING STANDARD ON SELLING AND DISTRIBUTION OVERHEADS The following is the COST ACCOUNTING STANDARD -15 (CAS-15) issued by the Council of The Institute of Cost Accountants of India on
More informationB. Com (Hons.) III Semester Paper Title: Cost Accounting Paper Code: AS-2620
B. Com (Hons.) III Semester Paper Title: Cost Accounting Paper Code: AS-26 * Prepared by: Nilmani Tripathi, Assistant Professor, Department of Commerce, GGV Answer 1. Short answer question 1. Eight example
More information3. Value is created when the price the customer is willing to pay for a product exceeds the costs incurred by the firm in supplying the product.
1. The business environment of a firm consists of all the internal and external influences that affect its performance. a. T * 2. PEST analysis is a popular environmental scanning framework. 3. Value is
More information2. PEST analysis is a popular environmental scanning and References: Pages *a. T b. F
1. The business environment of a firm consists of all the internal and external influences that affect its performance. a. T * 2. PEST analysis is a popular environmental scanning framework. 3. Value is
More informationPricing For Profit: Understanding Gross Profit, Margin & Markup. Presented by Larry Hunt Volunteer, Pinellas County SCORE
Pricing For Profit: Understanding Gross Profit, Margin & Markup Presented by Larry Hunt Volunteer, Pinellas County SCORE Introduction This webinar targets: Pricing Fundamentals with a financial overview
More informationThe Measurement and Importance of Profit
The Measurement and Importance of Profit The term profit comes from the Old French prufiter, porfiter, meaning to benefit. Throughout history, the notion of profit has always been a controversial subject.
More informationCOST C O S T COST 1/12/2011
Chapter 3 COST CONCEPT AND DESIGN ECONOMICS C O S T Ir. Haery Sihombing/IP Pensyarah Fakulti Kejuruteraan Pembuatan Universiti Teknologi Malaysia Melaka COST Cost is not a simple concept. It is important
More informationP2 Performance Management September 2013 examination
Management Level Paper P2 Performance Management September 2013 examination Examiner s Answers Note: Some of the answers that follow are fuller and more comprehensive than would be expected from a well-prepared
More informationWeek 1 (Part 1) Introduction Econ 101
Week 1 (art 1) Introduction Econ 101 reliminary Concepts (Chapter 2 g 38-41 & 47-50) Economics is the study of how individuals and societies choose to use scarce resources that nature and previous generations
More informationECS3705. Tutorial letter 201/1/2015. History of Economic Thought. Semester 1. Department of Economics ECS705/201/1/2015
ECS705/201/1/2015 Tutorial letter 201/1/2015 History of Economic Thought ECS3705 Semester 1 Department of Economics IMPORTANT INFORMATION: This tutorial letter contains solutions to assignment 01. Dear
More informationEXCEL PROFESSIONAL INSTITUTE. LECTURE 5 Holy
EXCEL PROFESSIONAL INSTITUTE LECTURE 5 Holy Q1. a) Investment Appraisal Lecture 10 &11 i. Types of Investment and Capital Expenditure ii. Objectives of Investment appraisal iii. Investment Appraisal Techniques
More informationII Rs. I Rs. Percentage of Normal Loss to Input. the month. Note: Cost per unit = Total Cost Scrap Value of Normal Loss Input Normal Loss
Process ing : Model Test Paper with question. ILLUSTRATION 1. Product Z is obtained after it passes through three distinct processes. The following information is obtained from the accounts for the month
More informationP2 Performance Management September 2014 examination
Management Level Paper P2 Performance Management September 2014 examination Examiner s Answers Note: Some of the answers that follow are fuller and more comprehensive than would be expected from a well-prepared
More informationChapter-23. Tariff Fixation
Chapter-23 Tariff Fixation BSNL, India For Internal Circulation Only 1 Tariff Fixation Regulatory authorities have considered a number of criteria for telecom tariffs, incorporating several objectives.
More informationGLOSSARY OF TERMS ENTREPRENEURSHIP AND BUSINESS INNOVATION
Accounts Payable - short term debts incurred as the result of day-to-day operations. Accounts Receivable - monies due to your enterprise as the result of day-to-day operations. Accrual Based Accounting
More informationFinancial Accounting and Auditing Paper-III Financial Accounting
Revised Syllabus of the Courses of B.Com. Programme at T.Y.B.Com. with Effect from the Academic Year 2015-2016 for IDOL Students Financial Accounting and Auditing Paper-III Financial Accounting SECTION
More informationSri Lanka Accounting Standard-LKAS 2. Inventories
Sri Lanka Accounting Standard-LKAS 2 Inventories CONTENTS paragraphs SRI LANKA ACCOUNTING STANDARD-LKAS 2 INVENTORIES OBJECTIVE 1 SCOPE 2 5 DEFINITIONS 6 8 MEASUREMENT OF INVENTORIES 9 33 Cost of inventories
More informationThe following are all product costs except: a. Direct materials b. Factory overhead c. Direct labor d. Sales and administrative expenses
1 MULTIPLE CHOICE 1-2 I certify that I am taking this assessment alone and that I am receiving no help with it except through the use of my textbook and notes. I have not been given the questions in advance.
More informationYOUR MOST IMPORTANT DECISION!
YOUR MOST IMPORTANT DECISION! Let me ask you a question. Do you think increasing your sales would be a good thing? If I told you that your price was too low, would you still think increasing sales would
More informationUNIT V Controlling. Elements of Control 1. Planning 2. Information Feedback 3. Delegation of Authority 4. Remedial action
UNIT V Controlling Definition - as the process of analyzing actual operations and seeing that actual performance is guided towards expected performance. - Comparing operating results with plans and taking
More informationIntroduction to Management Accounting
Unit - 1 MODULE - 1 Introduction to Management Accounting Introduction and Meaning of Management Accounting Definition Relation of Management Accounting with Cost Accounting and Financial Accounting Role
More informationEconomics. Synopsis. 1. Economic Concepts, Issues and Tools. 2. An Overview of Economics. Sections. Learning Summary. Sections
Synopsis Economics 1. Economic Concepts, Issues and Tools 1.1 Introduction 1.2 Scarcity and Choice 1.3 Preferences, Resources and Economic Efficiency 1.4 Marginal Analysis and Opportunity Cost 1.5 Different
More informationEco402 - Microeconomics Glossary By
Eco402 - Microeconomics Glossary By Break-even point : the point at which price equals the minimum of average total cost. Externalities : the spillover effects of production or consumption for which no
More informationCHAPTER 5 SUPPLIER PARTNERSHIP
CHAPTER 5 SUPPLIER PARTNERSHIP Expected Outcomes Identify the principles of customer-supplier relations for service providers as well as for manufacturers. Able to explain on how to develop supplier selection
More informationManagerial and behavioural theories of the firm
Managerial and behavioural theories of the firm 1 NOT REALISTIC 1. Managers can have their own goals (different from profit maximisation) 2. Uncertainty and imperfect information 3. Modern firms are complex
More informationCOST OF GOODS MANUFACTURED & SOLD STATEMENT
COST OF GOODS MANUFACTURED & SOLD STATEMENT In order to understand the financial and cost statement of a concern we should clear about the procedure adopted by trading concern and manufacturing concern
More informationP2 Performance Management
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO Performance Pillar P2 Performance Management 22 May 2013 Wednesday Afternoon Session Instructions to candidates You are allowed three hours to
More information1. Market Definition, Measurement And Concentration
1. Market Definition, Measurement And Concentration 1.0 Overview A merger is unlikely to create or enhance market power or to facilitate its exercise unless it significantly increases concentration and
More informationCompetitive Markets. Jeffrey Ely. January 13, This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License.
January 13, 2010 This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License. Profit Maximizing Auctions Last time we saw that a profit maximizing seller will choose
More informationCost Terms, Concepts and Classifications
Cost Terms, Concepts and Classifications 2 Cost, a frequently used word in all types of organizationsmanufacturing, non-manufacturing, business, service and retail. The process of management functions
More informationChapter 1. Introduction
Chapter 1 You must have already been introduced to a study of basic microeconomics. This chapter begins by giving you a simplified account of how macroeconomics differs from the microeconomics that you
More informationAccounting for Manufacturing
Accounting for Manufacturing 1 Accounting for Manufacturing and Inventory Impairments TABLE OF CONTENTS Accounting for manufacturing 2 Production activities 2 Production cost flows 3 Accounting for production
More informationYOUR MOST IMPORTANT DECISION!
YOUR MOST IMPORTANT DECISION! Let me ask you a question. Do you think increasing your sales would be a good thing? If I told you that your price was too low, would you still think increasing sales would
More information1. F; I 2. V ; D 3. V ; D 4. F; I 5. F; I 6. F; I 7. V ; D 8. F; I 9. F; I 10. V ; D 11. F; I 12. F; I 13. F; I 14. F; I
SOLUTIONS TO EERCISES EERCISE 2-1 (15 minutes) 1. F; I 2. V ; D 3. V ; D 4. F; I 5. F; I 6. F; I 7. V ; D 8. F; I 9. F; I 10. V ; D 11. F; I 12. F; I 13. F; I 14. F; I EERCISE 2-2 (15 minutes) 1. Product
More informationProducing Goods & Services
Producing Goods & Services Supply is the quantities of a product or service that a firm is willing and able to make available for sale at all possible prices. The Law of Supply states that the quantity
More information6. IT Governance 2006
6. IT Governance 2006 Introduction The Emerging Enterprise Model 3 p IT is an integral part of the business p IT governance is an integral part of corporate governance 4 Challenges for the IT IT gets more
More informationChapter 7 Producers in the Short Run
Chapter 7 Producers in the Short Run 7.1 What are Firms? Organisation of Firms 1) Single proprietorship Has one owner who is personally responsible for the firm s actions and debts 2) Ordinary partnership
More informationChapter 1 Cost Management and Strategic Decision Making
Chapter 1 Cost Management and Strategic Decision Making LO 1: Understand how cost management supports strategic planning and decision making. Characteristics of Cost management Cost management is important
More informationTopic 4. Session Objectives. Inventory Adjustments. Session Objectives. Inventory
Session Objectives Topic 4 Inventory Understand the need for adjustment for inventory in preparing financial statements Describe how opening and closing inventory appears in the profit and loss accounts
More informationWhy choose Peachtree?
Why choose Peachtree? Version 1.0 April, 2007 It s time to realize the importance Accounting can play in your business success. Accounting is more than just bookkeeping: ac count ing əˈkaʊn tɪŋ - Show
More informationCHAPTER-7 COST ACCOUNTING SYSTEM AND PRICING POLICY OF ETHIOPIAN PRINTING COMPANIES
CHAPTER-7 COST ACCOUNTING SYSTEM AND PRICING POLICY OF ETHIOPIAN PRINTING COMPANIES 7.1 Costing system 7.2 Manufacturing cost 7.3 Cost center 7.4 Cost accumulation procedures 7.5 Pricing policy and system
More informationExaminations for Semester I MODULE: MANAGEMENT ACCOUNTING FOR DECISION MAKING
PROGRAMME BSc (Hons) Financial Services BSc (Hons) Management with Marketing COHORT BFSG/08/FT BMAN/08/FT Examinations for 2009 2010 Semester I MODULE: MANAGEMENT ACCOUNTING FOR DECISION MAKING MODULE
More informationCase study Dealing with overheads
Case study Dealing with overheads This is the solution to the case study found at the end of: Chapter 7 Costing (a) Overhead apportionment Basis Total Cutting and turning Assembly and finishing Factory
More informationChapter - V Conclusion and suggestions
Chapter - V Conclusion and suggestions The concept of electronic Customer Relationship Management (ecrm) is gaining ground in the banking sector of Haryana. The core attribute of ecrm being its focus on
More information322 QUESTION PAPER BOOKLET CODE : A
322 QUESTION PPER BOOKLET CODE : : 1 : 322 Question Paper Booklet No. Roll No. : Time allowed : 3 hours Maximum marks : 100 Total number of questions : 100 Total number of printed pages : 20 Instructions
More informationOverhead and Everywhere
Overhead and Everywhere Ian Janes looks at techniques used to account for overhead expenditure and stresses the increased depth of the topic as you move through the management accounting papers of BA2,
More informationSCHOOL OF DISTANCE EDUCATION :: ANDHRA UNIVERSITY 2-YEAR MBA I YEAR ASSIGNMENTS FOR THE ACADEMIC YEAR
MANAGEMENT PROCESS AND BEHAVIOUR 1. a) Strategies for resolving intra-personal conflicts b) Business Ethics 2. a) Features of Organisational Culture b) Psychological Analysis of Behaviour and attitudes
More information15.4 Income Statement under Marginal Costing and Absorption Costing
UNIT 15 Structure MARGINAL COSTING 15.0 Objectives 15.1 Introduction 15.2 Segregation of Mixed Costs 15.3 Concept of Marginal Cost and Marginal Costing 15.4 Income Statement under Marginal Costing and
More informationMarginal Costing Q.8
Marginal Costing. 2008 Q.8 Break-Even Point. Before tackling a marginal costing question, it s first of all crucial that you understand what is meant by break-even point. What this means is that a firm
More informationChapter 4 Activity-based Costing Systems
Chapter 4 Activity-based Costing Systems ABC costing may use five different cost categories that reflect different levels of production activities and that sum to total production costs. Unit-level cost:
More informationIndian Accounting Standard (Ind AS) 2 Inventories
Indian Accounting Standard (Ind AS) 2 Inventories Indian Accounting Standard (Ind AS) 2, Inventories, prescribes the accounting treatment for inventories, such as, determination of cost and its subsequent
More informationDirect-to-Consumer (D2C): A Change in Consumer Behaviour? Issued: Contact Information. Julian Rice. Julian Rice, Head of Marketing
Issued: September 2013 Contact Information If you have any questions regarding IFDS s D2C services and capabilities please contact: Julian Rice +44 1268 44 3248 Direct-to-Consumer (D2C): A Change in Consumer
More information10 Joint Products & By Products
10 Joint Products & By Products BASIC CONCEPTS AND FORMULAE Basic Concepts 1. Joint Products and By-Products (i) Joint Products - Two or more products of equal importance, produced, simultaneously from
More information