Section-A 1. Discuss management accounting as an effective tool of financial control. 2. What do you mean by cash from operating activities? How is it calculated? 3. The “volume-cost-profit relationship provides management with a simplified framework for organizing its thinking on a number of problems.” Discuss 4. Recently a conference speaker discussing budgets & standard costs made the following statement- “Budgets & standard costs are not the same things‚ they have different purposes
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importance of managerial accounting in the workplace By: Michelle Moran | Posted: Jun 23‚ 2010 Managerial accounting is concerned with the use of economic and financial information to plan and control many activities of an entity and to support the management decision course. Management accountants play important roles more specifically in planning & coordination with production‚ marketing and financial functions. A subset of the managerial accounting profession is cost accounting which relates to
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Analyze the difference between contribution margin and gross margin These learning objectives (LO1 through LO6) are cross-referenced in the textbook to individual exercises and problems. © 2012 John Wiley and Sons Canada‚ Ltd. 96 Cost Management QUESTIONS 3.1 A mixed cost function includes both fixed and variable costs. If there are fixed costs in the cost function‚ then total costs will increase at a smaller rate than the increase in total sales volume. If there are variable costs
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Environmental Management Accounting Environmental Issues * Global Warming * Air and water pollution * Waste Disposal and treatment Examples- Bhopal (leakage of chemical gas)‚ Exxon Valdez (spilling 10.8 million gallons of oil)‚ Fukushima Nuclear Plant leakage in Japan (2011) Issues for Business: Businesses are becoming more and more conscious of the environmental implications of their operations‚ products and services. Environmental risks cannot be ignored. Consequences of
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What is strategic management accounting (SMA) Discuss the conceptual framework of strategic management accounting (SMA) Roslender & Hart‚ 2003 SMA is best understood as a generic approach to accounting for strategic positioning. It is defined by an attempt to integrate insights from management accounting and marketing management within a strategic management framework. To date‚ the attribute costing technique has been the most compelling development within SMA. Its focus on costing the benefits
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Chapter 2 Discussion Questions 1. What is the meaning of cost behavior and how does the variable cost behave differently than fixed cost (per unit & total)? Cost behavior is the change of cost relative to change in some extent of activity. The total fixed cost remains constant regardless of change in the volume of activity. However‚ the fixed cost per unit is inversely related to the change in the volume of activity. As the change in the volume of activity increases‚ the fixed cost per unit
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Financial Accounting vs Management Accounting Management accounting is a field of accounting that analyzes and provides cost information to the internal management for the purposes of planning‚ controlling and decision making. Management accounting refers to accounting information developed for managers within an organization. CIMA (Chartered Institute of Management Accountants) defines Management accounting as “Management Accounting is the process of identification‚ measurement‚ accumulation
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1.0 Introduction Management accounting is the application of professional knowledge and skill in the preparation of accounting information in such a way as to control the operations of an undertaking. It is the presentation of accounting information in such a way as to assist management in the creation of policy for the day-to-day operation of an undertaking as it provides information needed by managers to determine how resources should be obtained and used. It includes the methods and concepts
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STRATEGIC MANAGEMENT ACCOUNTING STUDY GUIDE 4.1 Case Study Part 1: Renewable energy product lines Case Study Part 2: Using the conventional ABC approach to assign indirect manufacturing costs Case Study Part 3: Using the TDABC approach to assign indirect manufacturing costs Case Study Part 4: Identifying the target cost per unit Case Study Part 5: Reassessing the allocation of indirect manufacturing costs for the Solarheat 1 Case Study Part 6: BPM and the Solarheat 1 manufacturing
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Managerial accountingis the process of identifying‚ measuring‚ analyzing‚ interpreting‚ and communicating information in pursuit of an organizations goals. Managerial accounting is an integral part of the management process‚ and managerial accountants are important strategic partners in an organizations management team. Four fundamental management processes that help organizations attain their goals Decision making‚ Planning(developing a detailed financial and operational description of anticipated operations)
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