,******ebook converter DEMO Watermarks*******
, Oxford University Press is a department of the University of Oxford. It furthers the University’s
objective of excellence in research, scholarship, and education by publishing worldwide. Oxford is a
registered trade mark of Oxford University Press in the UK and in certain other countries.
Published in South Africa by
Oxford University Press Southern Africa (Pty) Limited
Vasco Boulevard, Goodwood, N1 City, Cape Town, South Africa, 7460
P O Box 12119, N1 City, Cape Town, South Africa, 7463
© Oxford University Press Southern Africa (Pty) Ltd 2020
e moral rights of the author have been asserted.
First published 2008
Second edition published 2011
ird edition published 2020
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted, in any form or by any means, without the prior permission in writing of Oxford
University Press Southern Africa (Pty) Ltd, or as expressly permitted by law, by licence, or under
terms agreed with the appropriate reprographic rights organisation, DALRO, e Dramatic, Artistic
and Literary Rights Organisation at . Enquiries concerning reproduction outside the
scope of the above should be sent to the Rights Department, Oxford University Press Southern Africa
(Pty) Ltd, at the above address.
You must not circulate this work in any other form and you must impose this same condition on any
acquirer.
Principles of Management Accounting: A South African Perspective 3e
Print ISBN: 978-0-19-073263-9
ePUB ISBN: 978-0-19-073560-9
First impression 2020
Typeset in Palatino LT Std 9pt on 11pt
Acknowledgements
Publishing Manager: Alida Terblanche
Publisher: Marisa Montemarano
Development Editor: Jeanne Maclay-Mayers
Project Manager: Gugulethu Baloyi
Editor: Lee-Ann Ashcro
Indexer: Tanya Paulse
******ebook converter DEMO Watermarks*******
, Art Director: Judith Cross
Cover Designer: Judith Cross
Spec Designer: Danielle Nieuwenhuis
Typesetter: Tella Publishing
Links to third party websites are provided by Oxford in good faith and for information only. Oxford
disclaims any responsibility for the materials contained in any third party website referenced in this
work.
******ebook converter DEMO Watermarks*******
,Preface
Foreword
Acknowledgements
List of contributors
Chapter 1 Introduction to management accounting
Chapter 2 Cost classi cation
Chapter 3 Cost estimation
Chapter 4 Cost-volume-pro t relationships
Chapter 5 Absorption versus variable costing
Chapter 6 Overhead allocation
Chapter 7 Job costing
Chapter 8 Process costing
Chapter 9 Joint and by-product costing
Chapter 10 Relevant information for decision-making
Chapter 11 Decision-making under operational constraints
Chapter 12 Budgets, planning and control
Chapter 13 Standard costing
Chapter 14 Performance management
Chapter 15 Transfer pricing
Chapter 16 Contemporary management accounting concepts
Chapter 17 Competitive advantage
Glossary
Index
******ebook converter DEMO Watermarks*******
,Contents
Preface
Foreword
Acknowledgements
List of contributors
CHAPTER 1 INTRODUCTION TO MANAGEMENT ACCOUNTING
Shelley-Anne Roos (updated by John Williams)
1.1 Introduction
1.2 Management accounting
1.3 Financial reporting versus management accounting
1.4 Levels of management information
1.5 Modern management accounting
CHAPTER 2 COST CLASSIFICATION
Carol Cairney
2.1 Introduction
2.2 Cost behaviour
2.3 Assignment
2.4 Relevance
2.5 Function
2.6 Timing
2.7 Summary
Conclusion: Cost classi cation and other topics in this book
Basic questions
Long questions
CHAPTER 3 COST ESTIMATION
******ebook converter DEMO Watermarks*******
, Carol Cairney
3.1 Introduction
3.2 Cost drivers
3.3 Scatter graph
3.4 High-low method
3.5 Least squares regression
3.6 Factors affecting the accuracy of cost estimation
3.7 Other means of estimating costs and predicting cost behaviour
3.8 Summary
Conclusion: Cost estimation and other topics in this book
Appendix 3.1 Learning curves
Basic questions
Long questions
CHAPTER 4 COST-VOLUME-PROFIT RELATIONSHIPS
John Williams
4.1 Introduction
4.2 CVP analysis – the accountant’s and economist’s models
4.3 Break-even analysis
4.4 Sensitivity analysis
4.5 Break-even analysis with multiple products
4.6 CVP analysis assumptions and limitations
4.7 Summary
Conclusion: Cost-volume-pro t relationships and other topics in this
book
Basic questions
Long questions
CHAPTER 5 ABSORPTION VERSUS VARIABLE COSTING
Dewald Joubert
******ebook converter DEMO Watermarks*******
,5.1 Introduction
5.2 Cost accounting concepts
5.3 The impact of changes in inventory on pro t
5.4 Strengths and weaknesses of absorption and variable costing
5.5 Summary
Conclusion: Absorption versus variable costing and other topics in
this book
Basic questions
Long questions
ADVANCED READING INTEGRATION SECTION: CHAPTERS 1 TO 5
Shelley-Anne Roos (updated by John Williams)
CHAPTER 6 OVERHEAD ALLOCATION
Carol Cairney
6.1 Introduction
6.2 Volume- and value-based techniques
6.3 Allocation of support service department costs
6.4 Activity-based costing
6.5 Activity-based management and activity-based budgeting
6.6 Digital technologies
6.7 Summary
Conclusion: Overhead allocation and other topics in this book
Basic questions
Long questions
CHAPTER 7 JOB COSTING
John Williams
7.1 Introduction
7.2 Job costing objectives
******ebook converter DEMO Watermarks*******
,7.3 The elements of cost in a job costing system
7.4 Integrating the costing and nancial accounting systems
7.5 Summary
Conclusion: Job costing and other topics in this book
Basic questions
Long questions
CHAPTER 8 PROCESS COSTING
John Williams
8.1 Introduction
8.2 Calculations in a process costing system
8.3 Consecutive processes
8.4 Decision-making
8.5 Summary
Conclusion: Process costing and other topics in this book
Basic questions
Long questions
Appendix 8.1 Normal losses revisited – the ‘short cut’ method of
accounting for normal losses
CHAPTER 9 JOINT AND BY-PRODUCT COSTING
John Williams
9.1 Introduction
9.2 Cost accounting treatment of joint costs
9.3 Joint costs and nancial reporting
9.4 Joint costs in relation to decision-making
9.5 Summary
Conclusion: Joint and by-product costing and other topics in this
book
Basic questions
******ebook converter DEMO Watermarks*******
, Long questions
ADVANCED READING INTEGRATION SECTION: CHAPTERS 6 TO 9
John Williams and Shelley-Anne Roos
CHAPTER 10 RELEVANT INFORMATION FOR DECISION-MAKING
Dewald Joubert
10.1 Introduction
10.2 Understanding the concept of relevance
10.3 Decisions under conditions of certainty
10.4 Applying the concept of relevance to basic cost elements
10.5 Decisions under conditions of uncertainty
10.6 The pricing decision
10.7 Summary
Conclusion: Relevant costs for decision-making and other topics in
this book
Basic questions
Long questions
CHAPTER 11 DECISION-MAKING UNDER OPERATIONAL CONSTRAINTS
Appie Pienaar & Dewald Joubert
11.1 Introduction
11.2 The importance of contribution
11.3 Limiting factors
11.4 Make-or-buy decisions and scarce resources
11.5 Limiting factors and shadow prices
11.6 Linear programming: the graphical method
11.7 Shadow prices and linear programming
11.8 Linear programming: the simplex method
11.9 Concluding on operational constraints scenarios
******ebook converter DEMO Watermarks*******
, Oxford University Press is a department of the University of Oxford. It furthers the University’s
objective of excellence in research, scholarship, and education by publishing worldwide. Oxford is a
registered trade mark of Oxford University Press in the UK and in certain other countries.
Published in South Africa by
Oxford University Press Southern Africa (Pty) Limited
Vasco Boulevard, Goodwood, N1 City, Cape Town, South Africa, 7460
P O Box 12119, N1 City, Cape Town, South Africa, 7463
© Oxford University Press Southern Africa (Pty) Ltd 2020
e moral rights of the author have been asserted.
First published 2008
Second edition published 2011
ird edition published 2020
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted, in any form or by any means, without the prior permission in writing of Oxford
University Press Southern Africa (Pty) Ltd, or as expressly permitted by law, by licence, or under
terms agreed with the appropriate reprographic rights organisation, DALRO, e Dramatic, Artistic
and Literary Rights Organisation at . Enquiries concerning reproduction outside the
scope of the above should be sent to the Rights Department, Oxford University Press Southern Africa
(Pty) Ltd, at the above address.
You must not circulate this work in any other form and you must impose this same condition on any
acquirer.
Principles of Management Accounting: A South African Perspective 3e
Print ISBN: 978-0-19-073263-9
ePUB ISBN: 978-0-19-073560-9
First impression 2020
Typeset in Palatino LT Std 9pt on 11pt
Acknowledgements
Publishing Manager: Alida Terblanche
Publisher: Marisa Montemarano
Development Editor: Jeanne Maclay-Mayers
Project Manager: Gugulethu Baloyi
Editor: Lee-Ann Ashcro
Indexer: Tanya Paulse
******ebook converter DEMO Watermarks*******
, Art Director: Judith Cross
Cover Designer: Judith Cross
Spec Designer: Danielle Nieuwenhuis
Typesetter: Tella Publishing
Links to third party websites are provided by Oxford in good faith and for information only. Oxford
disclaims any responsibility for the materials contained in any third party website referenced in this
work.
******ebook converter DEMO Watermarks*******
,Preface
Foreword
Acknowledgements
List of contributors
Chapter 1 Introduction to management accounting
Chapter 2 Cost classi cation
Chapter 3 Cost estimation
Chapter 4 Cost-volume-pro t relationships
Chapter 5 Absorption versus variable costing
Chapter 6 Overhead allocation
Chapter 7 Job costing
Chapter 8 Process costing
Chapter 9 Joint and by-product costing
Chapter 10 Relevant information for decision-making
Chapter 11 Decision-making under operational constraints
Chapter 12 Budgets, planning and control
Chapter 13 Standard costing
Chapter 14 Performance management
Chapter 15 Transfer pricing
Chapter 16 Contemporary management accounting concepts
Chapter 17 Competitive advantage
Glossary
Index
******ebook converter DEMO Watermarks*******
,Contents
Preface
Foreword
Acknowledgements
List of contributors
CHAPTER 1 INTRODUCTION TO MANAGEMENT ACCOUNTING
Shelley-Anne Roos (updated by John Williams)
1.1 Introduction
1.2 Management accounting
1.3 Financial reporting versus management accounting
1.4 Levels of management information
1.5 Modern management accounting
CHAPTER 2 COST CLASSIFICATION
Carol Cairney
2.1 Introduction
2.2 Cost behaviour
2.3 Assignment
2.4 Relevance
2.5 Function
2.6 Timing
2.7 Summary
Conclusion: Cost classi cation and other topics in this book
Basic questions
Long questions
CHAPTER 3 COST ESTIMATION
******ebook converter DEMO Watermarks*******
, Carol Cairney
3.1 Introduction
3.2 Cost drivers
3.3 Scatter graph
3.4 High-low method
3.5 Least squares regression
3.6 Factors affecting the accuracy of cost estimation
3.7 Other means of estimating costs and predicting cost behaviour
3.8 Summary
Conclusion: Cost estimation and other topics in this book
Appendix 3.1 Learning curves
Basic questions
Long questions
CHAPTER 4 COST-VOLUME-PROFIT RELATIONSHIPS
John Williams
4.1 Introduction
4.2 CVP analysis – the accountant’s and economist’s models
4.3 Break-even analysis
4.4 Sensitivity analysis
4.5 Break-even analysis with multiple products
4.6 CVP analysis assumptions and limitations
4.7 Summary
Conclusion: Cost-volume-pro t relationships and other topics in this
book
Basic questions
Long questions
CHAPTER 5 ABSORPTION VERSUS VARIABLE COSTING
Dewald Joubert
******ebook converter DEMO Watermarks*******
,5.1 Introduction
5.2 Cost accounting concepts
5.3 The impact of changes in inventory on pro t
5.4 Strengths and weaknesses of absorption and variable costing
5.5 Summary
Conclusion: Absorption versus variable costing and other topics in
this book
Basic questions
Long questions
ADVANCED READING INTEGRATION SECTION: CHAPTERS 1 TO 5
Shelley-Anne Roos (updated by John Williams)
CHAPTER 6 OVERHEAD ALLOCATION
Carol Cairney
6.1 Introduction
6.2 Volume- and value-based techniques
6.3 Allocation of support service department costs
6.4 Activity-based costing
6.5 Activity-based management and activity-based budgeting
6.6 Digital technologies
6.7 Summary
Conclusion: Overhead allocation and other topics in this book
Basic questions
Long questions
CHAPTER 7 JOB COSTING
John Williams
7.1 Introduction
7.2 Job costing objectives
******ebook converter DEMO Watermarks*******
,7.3 The elements of cost in a job costing system
7.4 Integrating the costing and nancial accounting systems
7.5 Summary
Conclusion: Job costing and other topics in this book
Basic questions
Long questions
CHAPTER 8 PROCESS COSTING
John Williams
8.1 Introduction
8.2 Calculations in a process costing system
8.3 Consecutive processes
8.4 Decision-making
8.5 Summary
Conclusion: Process costing and other topics in this book
Basic questions
Long questions
Appendix 8.1 Normal losses revisited – the ‘short cut’ method of
accounting for normal losses
CHAPTER 9 JOINT AND BY-PRODUCT COSTING
John Williams
9.1 Introduction
9.2 Cost accounting treatment of joint costs
9.3 Joint costs and nancial reporting
9.4 Joint costs in relation to decision-making
9.5 Summary
Conclusion: Joint and by-product costing and other topics in this
book
Basic questions
******ebook converter DEMO Watermarks*******
, Long questions
ADVANCED READING INTEGRATION SECTION: CHAPTERS 6 TO 9
John Williams and Shelley-Anne Roos
CHAPTER 10 RELEVANT INFORMATION FOR DECISION-MAKING
Dewald Joubert
10.1 Introduction
10.2 Understanding the concept of relevance
10.3 Decisions under conditions of certainty
10.4 Applying the concept of relevance to basic cost elements
10.5 Decisions under conditions of uncertainty
10.6 The pricing decision
10.7 Summary
Conclusion: Relevant costs for decision-making and other topics in
this book
Basic questions
Long questions
CHAPTER 11 DECISION-MAKING UNDER OPERATIONAL CONSTRAINTS
Appie Pienaar & Dewald Joubert
11.1 Introduction
11.2 The importance of contribution
11.3 Limiting factors
11.4 Make-or-buy decisions and scarce resources
11.5 Limiting factors and shadow prices
11.6 Linear programming: the graphical method
11.7 Shadow prices and linear programming
11.8 Linear programming: the simplex method
11.9 Concluding on operational constraints scenarios
******ebook converter DEMO Watermarks*******
