By BPP Learning Media
ISBN-10: 0751763624
ISBN-13: 9780751763621
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It should be remembered that there may also be intangible benefits which may be harder to quantify. 3 Why is information important? Consider the following problems and what management needs to solve these problems. (a) (b) (c) A company wishes to launch a new product. The company's pricing policy is to charge cost plus 20%. What should the price of the product be? An organisation's widget-making machine has a fault. The organisation has to decide whether to repair the machine, buy a new machine or hire a machine.
Cost accounting provides a bank of data for the management accountant to use. Cost accounting is concerned with the following. x x x Preparing statements (eg budgets, costing) Cost data collection Applying costs to inventory, products and services Management accounting is concerned with the following. 1 Aims of cost accounts (a) The cost of goods produced or services provided. (b) The cost of a department or work section. (c) What revenues have been. (d) The profitability of a product, a service, a department, or the organisation in total.
In this example, the information is required weekly, but more urgent operational information, such as the amount of raw materials being input to a production process, may be required daily, hourly, or in the case of automated production, second by second. Operational information has the following features. x x x x 32 It is derived almost entirely from internal sources. It is highly detailed, being the processing of raw data. It relates to the immediate term, and is prepared constantly, or very frequently.
ACCA - F2 Management Accounting: Study Text by BPP Learning Media
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