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
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
