Management accounting summary; semester 2

Summary Management Accounting Semester 2; Period 4

Workshop 1

1. Relation to changes in activity
 Variable costs: related to activity level
 Fixed costs: no relation to activity level
2. Types of variable costs:
 Proportional
 Digressive
 Progressive




3.
4. Cost price per unit:
 Establish selling prices
 Profit calculation
 Inventory valuation
 Budgeting
5. Standard full cost price: Total Fixed costs/N + Variable cost per unit
6. Break-even analysis

Total
revenues


Total
Bre costs
ak-
eve
Production
n level
poin
7. BE Sales: Totalt fixed costs / Contribution margin per unit
8. Contribution margin: Selling price – Contribution margin
9. Variable cost per unit + F/N



Workshop 2

1. Total costs and average costs per unit

, Summary of Variable and Fixed Cost Behavior

Cost: Total: Per unit:

Propotional Variable costs Increase Remain the same

Fixed costs Remain the same Decrease



2. Cost of fixed assets:
- Depreciation
- Straight line depreciation: fixed depreciation charge
- Reducing balance: gradually decline of depreciation charge over time
- Sum of year’s digits
3. Straight- line depreciation




4. Reducing balance




5. Impact of waste and spoilage on cost price:
 Waste: inputs are not part of the finished product
 Spoilage: finished products cannot be sold or can only be sold below their normal selling price
6. Break even quantity: total fixed cost / (Sales price – variable cost price)

Workshop 7

1. Planning and control cyclus




2. Master budget