Stuvia - Koop en Verkoop de Beste Samenvattingen
Management Accounting – Samenvatting
Inhoud
Management Accounting – Samenvatting ...............................................................................1
College 1:....................................................................................................................................9
Hoofdstuk 1: Inleiding (ch1) ......................................................................................................9
Role of management accountants ............................................................................................9
Accountancy ..........................................................................................................................9
Management vs. Financial accounting .................................................................................9
Activities .............................................................................................................................. 10
Value Chain Analysis ...........................................................................................................10
Planning and control systems ............................................................................................. 11
Role of management accountants ......................................................................................11
Management accounting guidelines ..................................................................................11
Professional Ethics ..............................................................................................................11
Hoofstuk 2: Cost terminology (ch2) ........................................................................................13
Cost terms ............................................................................................................................ 13
Basic Cost Terminology .......................................................................................................13
Direct vs Indirect costs ....................................................................................................13
Example: Direct vs indirect costs ........................................................................................14
Variable versus fixed costs ..................................................................................................15
Cost Behavior Visualized .....................................................................................................15
Relevant Range ....................................................................................................................16
Example: Variable vs fixed costs .........................................................................................16
Cost assignment and behaviour .........................................................................................16
Product versus period costs ................................................................................................ 17
Product cost : be careful! ....................................................................................................17
Period Costs .........................................................................................................................17
Cost Flows Visualized ..........................................................................................................19
Multiple-Step Income Statement .......................................................................................19
Cost of Goods Manufactured .............................................................................................. 20
Costs per function ...............................................................................................................20
Total versus unit costs.........................................................................................................20
Conclusion ........................................................................................................................... 20
Hoofdstuk 3: Cost Volume Profit analysis (ch3) .....................................................................21
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Example ............................................................................................................................... 21
Basic Assumptions ...............................................................................................................21
Formulae: income calculation............................................................................................. 21
Contribution Margin vs. Gross Profit Comparative Statements .......................................22
Contribution Margin – BE point ..........................................................................................22
Breakeven Quantity ............................................................................................................23
Breakeven sales ...................................................................................................................23
Profit Planning .....................................................................................................................24
CVP and Income Taxes ........................................................................................................24
Example ............................................................................................................................... 25
Sensitivity Analysis ..............................................................................................................25
Margin of Safety ..................................................................................................................25
Operating Leverage .............................................................................................................26
Remember: lot of Assumptions ..........................................................................................26
Effects of Sales-Mix on CVP ................................................................................................ 26
C-V-P: concluding remarks ..................................................................................................27
Hoofdstuk 4: Job costing (ch4) ................................................................................................ 28
Job vs process costing .............................................................................................................28
Job-Costing and Process Costing: Opposite Ends of a Continuum ....................................28
New cost terms....................................................................................................................28
Job costing: cost assignment ..................................................................................................28
Costing Approaches in general ............................................................................................... 29
Seven-step Job Costing ...........................................................................................................29
Herhaling College 1 .............................................................................................................30
College 2:..................................................................................................................................31
Journal Entries .........................................................................................................................31
Accounting for Overhead ........................................................................................................32
End-of-accounting year adjustments .................................................................................33
Voorbeeldoefening Job Costing .............................................................................................. 34
Example Robinson (Horngren ch.4) .............................................................................34
Seven-step Job Costing for Robinson ...........................................................................34
Robinson Journal entries February .............................................................................35
Example Robinson: accounting for overhead............................................................. 38
Example Robinson ...........................................................................................................39
Boekingsverloop ..............................................................................................................42
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Hoofdstuk 5: Process Costing (ch17) ......................................................................................43
Overview.............................................................................................................................. 43
Process costing ........................................................................................................................43
Process-Costing Assumptions .................................................................................................43
Equivalent Units ......................................................................................................................45
Five-step Process Costing ........................................................................................................47
Result of the Process (as before) ........................................................................................47
Standard Costing and Process Costing ...................................................................................47
Transferred-in Costs ................................................................................................................47
Conclusion ............................................................................................................................... 48
..................................................................................................................................................48
Voorbeeldoefening Process Costing .......................................................................................49
Process Costing example (1) ..........................................................................................49
Process Costing example (2) ..........................................................................................49
Process Costing example (3) ..........................................................................................50
Process Costing example (4) ..........................................................................................50
Process Costing example (5) ..........................................................................................51
Process Costing example (6) ..........................................................................................51
Process Costing example (7) ..........................................................................................52
Traditional costing systems vs more refined systems (H6) ...................................................53
Traditional costing systems ................................................................................................ 53
Voorbeeldoefening Cactus Jelly.............................................................................................. 54
An Example ..........................................................................................................................54
Oefeningen handboek college 2: ............................................................................................ 56
College 3:..................................................................................................................................56
Conclusions of example ......................................................................................................57
Guidelines for refining costing system ...............................................................................57
Be careful ! ........................................................................................................................... 58
Hoofdstuk 6: Activity Based Costing (ch5) .............................................................................59
1. Rationale for Selecting a More Refined Costing System ...............................................59
2. Case study: Ericson Ice Cream Company ........................................................................59
Ericson Ice Cream: total profitability by product ............................................................... 59
Ericson Ice Cream: cost accounting system ........................................................................60
Ericson Ice Cream: Concerns ............................................................................................... 60
3. Activity-Based Cost Systems ........................................................................................... 60
Traditional costing system ..................................................................................................61
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Activity Based Costing system ............................................................................................ 61
Cost Hierarchies...................................................................................................................61
ABC in practice.....................................................................................................................62
Design of ABC system ..........................................................................................................62
Ericson’s Outdated Cost System .........................................................................................63
Ericson: Step 1: tracing costs to activities ..........................................................................63
Ericson: From resources to activities ..................................................................................64
Benefits from first steps in an ABC System ........................................................................64
Ericson: Step 2: tracing costs from activities to products..................................................64
Ericson: Completing the ABC Model ...................................................................................64
Ericson: Activity Cost Drivers .............................................................................................. 65
Ericson: Activity Cost Driver Rates (ACDR) .........................................................................65
Ericson: Activity Expenses Assigned ...................................................................................66
Ericson: Total ABC Profitability by Product ........................................................................66
4. Selecting Activity Cost Drivers ........................................................................................67
5. Advantages of ABC ..........................................................................................................67
Disadvantages of ABC .........................................................................................................67
6. Problems Implementing ABC ..........................................................................................68
7. ABC vs. Simple Costing Schemes ....................................................................................68
8. ABC and Service/Merchandising Firms ..........................................................................68
Activity Based Management ............................................................................................... 68
Elimination of Non-Value-Added Costs ..............................................................................69
..............................................................................................................................................69
Using ABM ........................................................................................................................... 69
Decision support information ............................................................................................. 69
..............................................................................................................................................69
Hoofdstuk 7: Master Budget (ch6) .........................................................................................70
The Ongoing Budget Process .............................................................................................. 70
Advantages of Budgets .......................................................................................................70
Components of Master Budgets .........................................................................................70
Basic Operating Budget Steps ............................................................................................. 71
Basic Financial Budget Steps ............................................................................................... 71
Budgeting Overview Flowchart ..........................................................................................71
Example: Sales Budget ........................................................................................................72
Sales Budget ........................................................................................................................72
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Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar.
Management Accounting – Samenvatting
Inhoud
Management Accounting – Samenvatting ...............................................................................1
College 1:....................................................................................................................................9
Hoofdstuk 1: Inleiding (ch1) ......................................................................................................9
Role of management accountants ............................................................................................9
Accountancy ..........................................................................................................................9
Management vs. Financial accounting .................................................................................9
Activities .............................................................................................................................. 10
Value Chain Analysis ...........................................................................................................10
Planning and control systems ............................................................................................. 11
Role of management accountants ......................................................................................11
Management accounting guidelines ..................................................................................11
Professional Ethics ..............................................................................................................11
Hoofstuk 2: Cost terminology (ch2) ........................................................................................13
Cost terms ............................................................................................................................ 13
Basic Cost Terminology .......................................................................................................13
Direct vs Indirect costs ....................................................................................................13
Example: Direct vs indirect costs ........................................................................................14
Variable versus fixed costs ..................................................................................................15
Cost Behavior Visualized .....................................................................................................15
Relevant Range ....................................................................................................................16
Example: Variable vs fixed costs .........................................................................................16
Cost assignment and behaviour .........................................................................................16
Product versus period costs ................................................................................................ 17
Product cost : be careful! ....................................................................................................17
Period Costs .........................................................................................................................17
Cost Flows Visualized ..........................................................................................................19
Multiple-Step Income Statement .......................................................................................19
Cost of Goods Manufactured .............................................................................................. 20
Costs per function ...............................................................................................................20
Total versus unit costs.........................................................................................................20
Conclusion ........................................................................................................................... 20
Hoofdstuk 3: Cost Volume Profit analysis (ch3) .....................................................................21
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Example ............................................................................................................................... 21
Basic Assumptions ...............................................................................................................21
Formulae: income calculation............................................................................................. 21
Contribution Margin vs. Gross Profit Comparative Statements .......................................22
Contribution Margin – BE point ..........................................................................................22
Breakeven Quantity ............................................................................................................23
Breakeven sales ...................................................................................................................23
Profit Planning .....................................................................................................................24
CVP and Income Taxes ........................................................................................................24
Example ............................................................................................................................... 25
Sensitivity Analysis ..............................................................................................................25
Margin of Safety ..................................................................................................................25
Operating Leverage .............................................................................................................26
Remember: lot of Assumptions ..........................................................................................26
Effects of Sales-Mix on CVP ................................................................................................ 26
C-V-P: concluding remarks ..................................................................................................27
Hoofdstuk 4: Job costing (ch4) ................................................................................................ 28
Job vs process costing .............................................................................................................28
Job-Costing and Process Costing: Opposite Ends of a Continuum ....................................28
New cost terms....................................................................................................................28
Job costing: cost assignment ..................................................................................................28
Costing Approaches in general ............................................................................................... 29
Seven-step Job Costing ...........................................................................................................29
Herhaling College 1 .............................................................................................................30
College 2:..................................................................................................................................31
Journal Entries .........................................................................................................................31
Accounting for Overhead ........................................................................................................32
End-of-accounting year adjustments .................................................................................33
Voorbeeldoefening Job Costing .............................................................................................. 34
Example Robinson (Horngren ch.4) .............................................................................34
Seven-step Job Costing for Robinson ...........................................................................34
Robinson Journal entries February .............................................................................35
Example Robinson: accounting for overhead............................................................. 38
Example Robinson ...........................................................................................................39
Boekingsverloop ..............................................................................................................42
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Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar.
, Stuvia - Koop en Verkoop de Beste Samenvattingen
Hoofdstuk 5: Process Costing (ch17) ......................................................................................43
Overview.............................................................................................................................. 43
Process costing ........................................................................................................................43
Process-Costing Assumptions .................................................................................................43
Equivalent Units ......................................................................................................................45
Five-step Process Costing ........................................................................................................47
Result of the Process (as before) ........................................................................................47
Standard Costing and Process Costing ...................................................................................47
Transferred-in Costs ................................................................................................................47
Conclusion ............................................................................................................................... 48
..................................................................................................................................................48
Voorbeeldoefening Process Costing .......................................................................................49
Process Costing example (1) ..........................................................................................49
Process Costing example (2) ..........................................................................................49
Process Costing example (3) ..........................................................................................50
Process Costing example (4) ..........................................................................................50
Process Costing example (5) ..........................................................................................51
Process Costing example (6) ..........................................................................................51
Process Costing example (7) ..........................................................................................52
Traditional costing systems vs more refined systems (H6) ...................................................53
Traditional costing systems ................................................................................................ 53
Voorbeeldoefening Cactus Jelly.............................................................................................. 54
An Example ..........................................................................................................................54
Oefeningen handboek college 2: ............................................................................................ 56
College 3:..................................................................................................................................56
Conclusions of example ......................................................................................................57
Guidelines for refining costing system ...............................................................................57
Be careful ! ........................................................................................................................... 58
Hoofdstuk 6: Activity Based Costing (ch5) .............................................................................59
1. Rationale for Selecting a More Refined Costing System ...............................................59
2. Case study: Ericson Ice Cream Company ........................................................................59
Ericson Ice Cream: total profitability by product ............................................................... 59
Ericson Ice Cream: cost accounting system ........................................................................60
Ericson Ice Cream: Concerns ............................................................................................... 60
3. Activity-Based Cost Systems ........................................................................................... 60
Traditional costing system ..................................................................................................61
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Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar.
, Stuvia - Koop en Verkoop de Beste Samenvattingen
Activity Based Costing system ............................................................................................ 61
Cost Hierarchies...................................................................................................................61
ABC in practice.....................................................................................................................62
Design of ABC system ..........................................................................................................62
Ericson’s Outdated Cost System .........................................................................................63
Ericson: Step 1: tracing costs to activities ..........................................................................63
Ericson: From resources to activities ..................................................................................64
Benefits from first steps in an ABC System ........................................................................64
Ericson: Step 2: tracing costs from activities to products..................................................64
Ericson: Completing the ABC Model ...................................................................................64
Ericson: Activity Cost Drivers .............................................................................................. 65
Ericson: Activity Cost Driver Rates (ACDR) .........................................................................65
Ericson: Activity Expenses Assigned ...................................................................................66
Ericson: Total ABC Profitability by Product ........................................................................66
4. Selecting Activity Cost Drivers ........................................................................................67
5. Advantages of ABC ..........................................................................................................67
Disadvantages of ABC .........................................................................................................67
6. Problems Implementing ABC ..........................................................................................68
7. ABC vs. Simple Costing Schemes ....................................................................................68
8. ABC and Service/Merchandising Firms ..........................................................................68
Activity Based Management ............................................................................................... 68
Elimination of Non-Value-Added Costs ..............................................................................69
..............................................................................................................................................69
Using ABM ........................................................................................................................... 69
Decision support information ............................................................................................. 69
..............................................................................................................................................69
Hoofdstuk 7: Master Budget (ch6) .........................................................................................70
The Ongoing Budget Process .............................................................................................. 70
Advantages of Budgets .......................................................................................................70
Components of Master Budgets .........................................................................................70
Basic Operating Budget Steps ............................................................................................. 71
Basic Financial Budget Steps ............................................................................................... 71
Budgeting Overview Flowchart ..........................................................................................71
Example: Sales Budget ........................................................................................................72
Sales Budget ........................................................................................................................72
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