A customer-centric costing system that bases all cost workings for a product from its market price. The purpose is to reduce cost of a product as low as possible to arrive at a price that would be either equal to or less than that of competitors’ product while delivering the same functionality.
Cost Volume Profit (CVP).
Introduction
Fixed costs
Variable costs
Semi variable costs
Contribution margin
Break even point
PV Ratio
BEP ANalysis.
break even point
Cost-volume-Profit.
A customer-centric costing system that bases all cost workings for a product from its market price. The purpose is to reduce cost of a product as low as possible to arrive at a price that would be either equal to or less than that of competitors’ product while delivering the same functionality.
Cost Volume Profit (CVP).
Introduction
Fixed costs
Variable costs
Semi variable costs
Contribution margin
Break even point
PV Ratio
BEP ANalysis.
break even point
Cost-volume-Profit.
This presentation is about flexible budgeting and how it helps in adjusting the necessary changes in volume of activity. It is opposite of static budget, which remains fixed or at one amount regardless of the volume of activity.
Gordon Growth Model plays an important role in determining the intrinsic value of a stock based on a future series of dividends that grow at a constant rate.
Cost Accounting-
-Meaning of Cost Accounting
-Scope of Cost Accounting
-Nature of Cost Accounting
-Relationship b/w Financial Accounting & Cost Accounting
-Cost Accounting v/s Management Accounting
-Objectives of cost accounting
-Function of cost accountant
-Essentials of cost accounting
-Advantages of cost accounting
-Limitations of cost accounting
-Role of cost in cost accounting
-Cost Unit & Cost Centre
-Cost Techniques
-Costing Systems
-Costing Methods
-Cost Classification
-Components of total cost
-Cost Sheet.
the document is on Cost volume profit analysis.
(Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect a company's operating income and net income.)
Activity based costing is considered to be useful only for Manufacturing Organizations whereas reality is that it is equally usefull to Service providers
Marginal costing is a costing technique wherein the marginal cost, i.e. variable cost is charged to units of cost, while the fixed cost for the period is completely written off against the contribution.
This presentation is about flexible budgeting and how it helps in adjusting the necessary changes in volume of activity. It is opposite of static budget, which remains fixed or at one amount regardless of the volume of activity.
Gordon Growth Model plays an important role in determining the intrinsic value of a stock based on a future series of dividends that grow at a constant rate.
Cost Accounting-
-Meaning of Cost Accounting
-Scope of Cost Accounting
-Nature of Cost Accounting
-Relationship b/w Financial Accounting & Cost Accounting
-Cost Accounting v/s Management Accounting
-Objectives of cost accounting
-Function of cost accountant
-Essentials of cost accounting
-Advantages of cost accounting
-Limitations of cost accounting
-Role of cost in cost accounting
-Cost Unit & Cost Centre
-Cost Techniques
-Costing Systems
-Costing Methods
-Cost Classification
-Components of total cost
-Cost Sheet.
the document is on Cost volume profit analysis.
(Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect a company's operating income and net income.)
Activity based costing is considered to be useful only for Manufacturing Organizations whereas reality is that it is equally usefull to Service providers
Marginal costing is a costing technique wherein the marginal cost, i.e. variable cost is charged to units of cost, while the fixed cost for the period is completely written off against the contribution.
Module 5 Discussion ForumDiscussion Capital Budgeting and How to .docxmoirarandell
Module 5 Discussion Forum
Discussion: Capital Budgeting and How to Create Operating Budgets
Variance Analysis:
Write an analytical summary of your learning outcomes from chapters 9 and 10. In addition to your analytical summary, address the following:
1. As a manager, discuss how you would use or have used the concepts presented in chapters 9 and 10.
2. Why might managers find a flexible-budget analysis more informative than static-budget analysis?
3. How might a manager gain insight into the causes of flexible-budget variances for direct materials, labor, and overhead? Provide at least one numerical example to support your thoughts.
Instructions:
Completed the assignment by over 550 words and references.
- Read and respond to at least 3 of your classmates' posts.(Below posted my classmate discussions) Read a selection of your colleagues' postings. Respond to at least 3 of your classmates’ posts. (Each response should be 150 words, It should include the stuff like supporting their discussion and
Study Materials Link:
TextBook:https://saylordotorg.github.io/text_managerial-accounting/index.html
· Lesson Lecture
· Video-1: Capital BudgetingURL- https://www.youtube.com/watch?v=TrKVj_wLgUc
· Video-2: Capital BudgetingURL- https://www.youtube.com/watch?v=QRh0tiG2lVk
· Video: Sales BudgetURL- https://www.youtube.com/watch?v=frCX_bsFsao
· Video: Master Budget/Operating BudgetsURL- https://www.youtube.com/watch?v=Wy9MGFjS7ZAAssigned Reading/Study Materials
Use the following links to study Module 5 topics
Capital Budgeting Analysis
https://saylordotorg.github.io/text_managerial-accounting/s12-how-is-capital-budgeting-used-.html
Analysis of Operating Budgets:
https://saylordotorg.github.io/text_managerial-accounting/s13-how-are-operating-budgets-crea.html
3-Clasmate discussion
Discussion1:
by Srikanth Jagini - Wednesday, 6 May 2020, 4:57 PM
Analytical summary
Every organization always wants to create a budget that is flexible and more relevant for the appropriate outcome. The flexible budget is nothing but a budget or list of expenses that occur during a year and it controls the potential emergencies and mitigates the loss of the business. According to Yuzvovich, Korogodina & Azisova (2018), it has been stated that the various problems of budgets made the industrial workflow decreasing and its impact creates the industrial dislocation, a flexible budget is an actual solution and in mitigates the loss of industrial productivity. The flexible budget provides the necessary adjustment when any type of change occurred in the organization and it increases the productivity or capability of the business. Analysis of the performance of the workers and laborers is more important for the organizational perspective. Variance in the flexible budget is occurred due to lack of control and lack of using the materials and poor remuneration to the workers and most importantly by corruption in financial areas. With respect to Junita (2018), it has bee ...
Module 5 Discussion ForumDiscussion Capital Budgeting and How to .docxssuserf9c51d
Module 5 Discussion Forum
Discussion: Capital Budgeting and How to Create Operating Budgets
Variance Analysis:
Write an analytical summary of your learning outcomes from chapters 9 and 10. In addition to your analytical summary, address the following:
1. As a manager, discuss how you would use or have used the concepts presented in chapters 9 and 10.
2. Why might managers find a flexible-budget analysis more informative than static-budget analysis?
3. How might a manager gain insight into the causes of flexible-budget variances for direct materials, labor, and overhead? Provide at least one numerical example to support your thoughts.
Instructions:
Completed the assignment by over 550 words and references.
- Read and respond to at least 3 of your classmates' posts.(Below posted my classmate discussions) Read a selection of your colleagues' postings. Respond to at least 3 of your classmates’ posts. (Each response should be 150 words, It should include the stuff like supporting their discussion and
Study Materials Link:
TextBook:https://saylordotorg.github.io/text_managerial-accounting/index.html
· Lesson Lecture
· Video-1: Capital BudgetingURL- https://www.youtube.com/watch?v=TrKVj_wLgUc
· Video-2: Capital BudgetingURL- https://www.youtube.com/watch?v=QRh0tiG2lVk
· Video: Sales BudgetURL- https://www.youtube.com/watch?v=frCX_bsFsao
· Video: Master Budget/Operating BudgetsURL- https://www.youtube.com/watch?v=Wy9MGFjS7ZAAssigned Reading/Study Materials
Use the following links to study Module 5 topics
Capital Budgeting Analysis
https://saylordotorg.github.io/text_managerial-accounting/s12-how-is-capital-budgeting-used-.html
Analysis of Operating Budgets:
https://saylordotorg.github.io/text_managerial-accounting/s13-how-are-operating-budgets-crea.html
3-Clasmate discussion
Discussion1:
by Srikanth Jagini - Wednesday, 6 May 2020, 4:57 PM
Analytical summary
Every organization always wants to create a budget that is flexible and more relevant for the appropriate outcome. The flexible budget is nothing but a budget or list of expenses that occur during a year and it controls the potential emergencies and mitigates the loss of the business. According to Yuzvovich, Korogodina & Azisova (2018), it has been stated that the various problems of budgets made the industrial workflow decreasing and its impact creates the industrial dislocation, a flexible budget is an actual solution and in mitigates the loss of industrial productivity. The flexible budget provides the necessary adjustment when any type of change occurred in the organization and it increases the productivity or capability of the business. Analysis of the performance of the workers and laborers is more important for the organizational perspective. Variance in the flexible budget is occurred due to lack of control and lack of using the materials and poor remuneration to the workers and most importantly by corruption in financial areas. With respect to Junita (2018), it has bee.
2. Lesson Objectives
What are budgets?
How do businesses use budgets?
- Variance Analysis
How do businesses benefit from budgets?
How are budgets produced?
3. Types of budgets
Almostall activities of a business can
be budgeted. These include:
Sales budget
Expenditure budget
Profit Budget
4. What is budgeting?
Budgeting involves defining financial objectives,
assessing finances and using this information for
financial planning.
Once the financial manager has an understanding
of how the business stands financially he can set
budgets.
5. Benefits of Budgeting
It helps to predict what will happen in the future
It sets targets
They help monitor performance
They help control performance
They help in business planning
They can be used as a source of motivation as they
involve a consultation process
They are a form of communication
7. The process of budget setting
The business is broken down into a series of
control centres
Each manager has responsibility for managing
the budget for their control centre
Each manager is kept informed of their own
performance and that of other budget holders
8. How are the Budgets decided?
Managers will look at:
Past results & costs
Planned Output
How money has been allocated in the past
Business Objectives for the coming period
Consultation with managers
Forecasts for markets and prices
9. Variance Analysis
Variance analysis is Favourable variances mean
used to calculate the that the actual performance
difference between any of the organisation has been
actual and budgeted better than expected – likely
figures. to increase profit
Adverse variances mean that
After calculation the the actual performance has
variance should be been worse than expected
interpreted as follows: -likely to reduce profit
10. Profit Variance
The difference between budgeted profit and
actual profit
This can be broken down to revenue variances
and cost variances
These variances can in turn be broken down
further
11. Sales Variance
Sales variance – the difference between
actual sales revenue and budgeted sales
revenue
This can be broken down into:
- Sales volume variance (how sales differed from
target)
- Price variance (how actual price differed from
expected price)
12. Cost Variances
Material price variance – the difference between the
budgeted cost of raw materials and the actual costs
Material usage variance – the difference between the
budgeted quantities of raw materials & supplies against
the actual quantities used
Labour rate variance – the budgeted wage bill compared
to the actual wage bill
Labour efficiency variance – the budgeted number of
man-hours to complete tasks compared to the actual
time taken