绪章Introduction

Introduction

●0.1Introduction

Introduction

第一章The nature, source and purpose of management information

1.Data and information 2.Cost classification and cost behaviour 3.Presenting information

●1.1Accounting for management

This chapter provides an introduction to Management Accounting. We look at data and information and introduce you to cost accounting and the differences between financial accounting and management accounting. We also outline the managerial processes of planning, control and decision making. The sources of data are covered in the next chapter. Chapters 3a and 3b provide basic information on how costs are classified and how they behave.

●1.2Sources of data

In this chapter we will look at types of data and sources of information from within and outside the organisation. Data can be primary or secondary and discrete or continuous. Data can come from various sources other than from the organisation itself. Examples include government, professional associations, financial press, quotations and price lists. Big data is a relatively new concept and will look at what it means. We will finish the chapter by covering various sampling techniques.

●1.3Cost classification

The classification of costs as either direct or indirect for example, is essential in the costing method used by an organisation to determine the cost of a unit of product or service. The fixed and variable cost classifications, on the other hand, are important in absorption and marginal costing, and behaviour. You will meet all these topics as we progress through the Interactive Text. This chapter therefore acts as a foundation stone for a number of other chapters in the Text and hence an understanding of the concepts covered in it is vital before you move on.

●1.4Cost behaviour

So far in this Text we have introduced you to the subject of management information and explained in general terms what it is and what it does. In Chapter 3 we considered the principal methods of classifying costs. In particular, we introduced the concept of the division of costs into those that vary directly with changes in activity levels (variable costs) and those that do not (fixed costs). This chapter examines further this two-way split of cost behaviour and explains one method of splitting semivariable costs into these two elements, the high-low method.

●1.5Presenting information

In this chapter we will look at how the management accountant might present management information. Your syllabus requires you to prepare reports, graphs and tables but this is very difficult to examine in a computer-based exam. The focus, therefore, should be on interpreting reports and understanding what format would be suitable depending on the purpose of the report.

第二章Data analysis and statistical techniques

1.Sampling and forcasting 2. Summarising and analysing data

●2.1Sampling methods

In this chapter we will introduce different sampling methods. Including probability and non-probability sampling methods.

●2.2Forecasting techniques

We will be covering two principal forecasting techniques Forecasting in this chapter, regression analysis and time series analysis. Regression analysis can be applied to costs and revenues while time series analysis is generally applied to revenue.

●2.3Summarising and analysing data

In Chapter 2b we saw how data can summarised and presented in tabular, chart and graphical formats. Sometimes management might need more information than that provided by diagrammatic analysis. For example, they might wish to calculate a measure of centrality (averages) and a measure of dispersion. These are the subjects of this chapter.

第三章Cost accounting techniques

1.Accounting for material，labour and overheads 2. Absorption and marginal costing 3.Job costing，batch costing and process costing

●3.1Accounting for material

The investment in inventory is a very important one for most businesses, both in terms of monetary value and relationships with customers (no inventory, no sale, loss of customer goodwill). It is therefore vital that management establish and maintain an effective inventory control system. This chapter will concentrate on a inventory control system for materials, but similar problems and considerations apply to all forms of inventory.

●3.2Accounting for labour

Just as management need to control inventories and operate an appropriate valuation policy in an attempt to control material costs, so too must they be aware of the most suitable remuneration policy for their organisation. We will be looking at a number of methods of remuneration and will consider the various types of incentive scheme that exist. We will also examine the procedures and documents required for the accurate recording of labour costs. Labour turnover will be studied too.

●3.3Accounting for overheads

Absorption costing is a method of accounting for overheads. It is basically a method of sharing out overheads incurred among units produced. This chapter begins by explaining why absorption costing might be necessary and then provides an overview of how the cost of a unit of product is built up under a system of absorption costing. A detailed analysis of this costing method is then provided, covering the three stages of absorption costing: allocation, apportionment and absorption.

●3.4Absorption and marginal costing

This chapter defines marginal costing and compares it with absorption costing. Whereas absorption costing recognises fixed costs (usually fixed production costs) as part of the cost of a unit of output and hence as product costs, marginal costing treats all fixed costs as period costs. Two such different costing methods obviously each have their supporters and so we will be looking at the arguments both in favour of and against each method. Each costing method, because of the different inventory valuation used, produces a different profit figure and we will be looking at this particular point in detail.

●3.5Job and batch costing

The first costing method that we shall be looking at is job costing. We will see the circumstances in which job costing should be used and how the costs of jobs are calculated. We will look at how the costing of individual jobs fits in with the recording of total costs in control accounts and then we will move on to batch costing, the procedure for which is similar to job costing. Service costing deals with specialist services supplied to third parties or an internal service supplied within an organisation.

●3.6Process costing

In this chapter we will consider process costing. The chapter will consider the topic from basics, looking at how to account for the most simple of processes. We then move on to how to account for any losses which might occur, as well as what to do with any scrapped units which are sold. We also consider how to deal with any closing work in progress and then look at two methods of valuing opening work in progress. Valuation of both opening and closing work in progress hinges on the concept of equivalent units, which will be explained in detail.

第四章Budgeting

1.Budget and preparing budget 2. Flexible budgets 3. Capital budgeting

●4.1Nature and purpose of budgeting

This chapter covers a new topic, budgeting. The chapter begins by explaining the reasons for operating a budgetary planning and control system. It explains some of the key terms associated with budgeting and reminds you of the steps in the preparation of a master budget.

●4.2Budget preparation

In this chapter we look at how the budget is put together. You need to know the stages in budget preparation and the importance of the principal budget factor. You also need to know how to prepare functional and cash budgets.

●4.3Flexible budgets

This chapter introduce flexible budget and the steps to prepare flexible budget.

●4.4Capital budgeting and discounted cash flows

This chapter looks at the importance of capital investment planning. You need to understand the difference between capital and revenue expenditure and be able to identify relevant and non-relevant costs. You need to understand the time value of money, the payback period and the internal rate of return.

●4.5Behavioural aspects of budgeting

This chapter looks at how to put budgets into action. Budgets can be motivational but they can also produce undesirable negative reactions. Participative budgeting can help to avoid a negative reaction but there are disadvantages to this approach as well.

第五章Standard costing

1. Standard costing 2.Variance analysis

●5.1Standard costing

Just as there are standards for most things in our daily lives (cleanliness in hamburger restaurants, educational achievement of nine year olds, number of trains running on time), there are standards for the costs of products and services. Moreover, just as the standards in our daily lives are not always met, the standards for the costs of products and services are not always met. In this chapter we will be looking at standards for costs, what they are used for and how they are set. In the next chapter we will see how standard costing forms the basis of a process called variance analysis, a vital management control tool.

●5.2Cost Variance calculations and analysis

This chapter examines variance analysis and sets out the method of calculating the variances stated below in the Study Guide. We will then go on to look at the reasons for and significance of cost variances.

●5.3Sales variances and operating statements

The objective of cost variance analysis, which we looked at in the previous chapter, is to assist management in the control of costs. Costs are, however, only one factor which contribute to the achievement of planned profit. Sales are another important factor and sales variances can be calculated to aid management's control of their business. We will therefore begin this chapter by examining sales variances.

第六章Performance measurement

1.Performance measurement 2.Financial and non-financial performance measures

●6.1Performance measurement - overview

We looked briefly at objectives and goals in Chapter 1. Here we return to goals and objectives in the context of performance measurement. Performance measurement helps to ensure that the business is being run as efficiently as possible. So when we talk about performance measurement, we are talking about control of performance. We will look at how mission statements are linked to objectives and to key performance indicators and we will look at different types of performance measure.

●6.2Financial performance measurement

This chapter continues with Financial performance measurement.

●6.3Assessing non-financial performance

This chapter continues with non-financial performance measurement and includes measuring performance in service industries and not for profit organisations.