The document provides an introduction to managerial accounting and cost concepts. It discusses the differences between managerial and financial accounting, the planning and control cycle used by managers, classifications of costs as fixed or variable, and the flow of costs through the production process for a manufacturer. Key aspects covered include direct and indirect costs, product versus period costs, inventory flows, and calculating costs of goods manufactured and costs of goods sold.
This document discusses various cost classifications used in managerial accounting. It begins by explaining the differences between managerial accounting and financial accounting. Managerial accounting provides information to managers within an organization, while financial accounting reports information externally. The document then covers classifications for assigning costs, preparing financial statements, predicting cost behavior, and making decisions. It defines direct costs, indirect costs, product costs, period costs, variable costs, fixed costs, and mixed costs. Examples are provided for each classification type. The overall purpose is to understand how costs are classified and used for different managerial accounting purposes.
Large businesses divide operations into responsibility centers to improve management control. Responsibility accounting provides financial information on resource usage and output for each center. Managers are evaluated on centers' performance. Centers include cost centers, which control costs but not revenues, profit centers controlling both, and investment centers controlling capital allocation. Traceable costs are directly assigned, while common costs apply to the whole business. Transfer prices set the cost when one division provides goods or services to another and impact each division's reported profits. Non-financial metrics also measure manager and center performance. Public companies report high-level financial data by business segment.
Managerial Accounting Garrison Noreen Brewer Chapter 02Asif Hasan
This document provides an overview of cost accounting concepts including direct materials, direct labor, manufacturing overhead, product costs, period costs, inventory flows for manufacturers and merchandisers, and cost behavior analysis. It defines key cost terms, explains how costs flow through a manufacturing company, and provides examples of inventory and cost of goods sold calculations. Multiple choice questions are included to test understanding of cost accounting concepts.
This document provides an overview of exercises, problems, cases, and internet assignments from Chapter 2 of an accounting textbook. It lists 23 exercises that cover topics such as preparing basic financial statements, accounting principles, effects of transactions, and evaluating financial statements. For each exercise, it provides the learning objectives, estimated time to complete, and difficulty level. It also provides brief descriptions and estimated times for 10 problems and 5 cases designed to reinforce chapter concepts.
The document provides an introduction to auditing principles and practices. It defines auditing and distinguishes it from accounting. Auditing involves accumulating and evaluating evidence to determine if information matches established criteria, while accounting identifies, analyzes, records and communicates financial information. The purpose of auditing is to provide reliable financial information for decision making and ensure accountability. There are three main types of audits - financial statement audits, compliance audits, and operational/performance audits. Auditors can also be independent, internal to an organization, or from the government.
Accounting Principles 9th Edition by Weygandt, Kieso & Kimmel.pdfNaimmulFahim
WileyPLUS is an online learning platform that provides students with interactive resources like an online textbook, automatic grading of homework and quizzes, tutorials, and demonstrations to help them learn. It has helped over half a million students achieve positive learning outcomes. The document promotes WileyPLUS and explains that it provides robust course management tools and interactive learning resources to help instructors and students.
The document provides an introduction to auditing, discussing the origin of auditing in the 15th century, the evolving concepts of auditing such as its role in ensuring accountability and compliance, and definitions of auditing from various sources. It also covers the objectives of auditing in verifying financial statements and detecting errors and fraud, the differences between bookkeeping, accounting and auditing, and the various types and classifications of audits.
Accounting is the process of recording, classifying, summarizing, interpreting and communicating financial information about an entity. It has both external and internal users. External users include investors, creditors, tax authorities and customers who use financial statements. Internal users include management and owners who use managerial accounting for decision making. To ensure consistency, accounting follows Generally Accepted Accounting Principles (GAAP), which are a common set of standards, procedures and constraints. GAAP aims to make financial information useful, comprehensive, consistent and comparable for decision makers.
This document discusses various cost classifications used in managerial accounting. It begins by explaining the differences between managerial accounting and financial accounting. Managerial accounting provides information to managers within an organization, while financial accounting reports information externally. The document then covers classifications for assigning costs, preparing financial statements, predicting cost behavior, and making decisions. It defines direct costs, indirect costs, product costs, period costs, variable costs, fixed costs, and mixed costs. Examples are provided for each classification type. The overall purpose is to understand how costs are classified and used for different managerial accounting purposes.
Large businesses divide operations into responsibility centers to improve management control. Responsibility accounting provides financial information on resource usage and output for each center. Managers are evaluated on centers' performance. Centers include cost centers, which control costs but not revenues, profit centers controlling both, and investment centers controlling capital allocation. Traceable costs are directly assigned, while common costs apply to the whole business. Transfer prices set the cost when one division provides goods or services to another and impact each division's reported profits. Non-financial metrics also measure manager and center performance. Public companies report high-level financial data by business segment.
Managerial Accounting Garrison Noreen Brewer Chapter 02Asif Hasan
This document provides an overview of cost accounting concepts including direct materials, direct labor, manufacturing overhead, product costs, period costs, inventory flows for manufacturers and merchandisers, and cost behavior analysis. It defines key cost terms, explains how costs flow through a manufacturing company, and provides examples of inventory and cost of goods sold calculations. Multiple choice questions are included to test understanding of cost accounting concepts.
This document provides an overview of exercises, problems, cases, and internet assignments from Chapter 2 of an accounting textbook. It lists 23 exercises that cover topics such as preparing basic financial statements, accounting principles, effects of transactions, and evaluating financial statements. For each exercise, it provides the learning objectives, estimated time to complete, and difficulty level. It also provides brief descriptions and estimated times for 10 problems and 5 cases designed to reinforce chapter concepts.
The document provides an introduction to auditing principles and practices. It defines auditing and distinguishes it from accounting. Auditing involves accumulating and evaluating evidence to determine if information matches established criteria, while accounting identifies, analyzes, records and communicates financial information. The purpose of auditing is to provide reliable financial information for decision making and ensure accountability. There are three main types of audits - financial statement audits, compliance audits, and operational/performance audits. Auditors can also be independent, internal to an organization, or from the government.
Accounting Principles 9th Edition by Weygandt, Kieso & Kimmel.pdfNaimmulFahim
WileyPLUS is an online learning platform that provides students with interactive resources like an online textbook, automatic grading of homework and quizzes, tutorials, and demonstrations to help them learn. It has helped over half a million students achieve positive learning outcomes. The document promotes WileyPLUS and explains that it provides robust course management tools and interactive learning resources to help instructors and students.
The document provides an introduction to auditing, discussing the origin of auditing in the 15th century, the evolving concepts of auditing such as its role in ensuring accountability and compliance, and definitions of auditing from various sources. It also covers the objectives of auditing in verifying financial statements and detecting errors and fraud, the differences between bookkeeping, accounting and auditing, and the various types and classifications of audits.
Accounting is the process of recording, classifying, summarizing, interpreting and communicating financial information about an entity. It has both external and internal users. External users include investors, creditors, tax authorities and customers who use financial statements. Internal users include management and owners who use managerial accounting for decision making. To ensure consistency, accounting follows Generally Accepted Accounting Principles (GAAP), which are a common set of standards, procedures and constraints. GAAP aims to make financial information useful, comprehensive, consistent and comparable for decision makers.
Accounting Standards for Government Entities other than Government Business Enterprises (GBEs). This accounting standard is international standard for Governments, Government Autonomous bodies, Government Financial Institutions (not commercial entities). IFRS is international standard for Corporates, which is applicable to Government Business Enterprises. Different nations have adopted and adapted the IPSAS, Cash or Accrual or modified Cash IPSAS. Governments has named the standards by the name of respective Governments.
This document discusses key concepts in the accounting cycle, including:
- The ledger contains all accounts and records increases and decreases for each account.
- Accounts track increases on the debit side and decreases on the credit side.
- The double-entry system requires equal debit and credit amounts for every transaction to maintain the accounting equation.
- Examples are provided to illustrate how common business transactions are recorded through journal entries and posted to accounts in the ledger, including recording revenues, expenses, assets, and owner's equity.
Lecture 23 expenditure cycle part ii -fixed assets accounting information sy...Habib Ullah Qamar
The document discusses fixed asset systems and their differences from inventory systems. Fixed asset systems process transactions for acquiring, maintaining, and disposing of long-term assets like land, buildings, and equipment. They record asset costs, depreciation, and location. Fixed asset transactions require approval since assets are long-term investments, unlike routine inventory purchases. Additionally, fixed assets are capitalized and depreciated over multiple periods, unlike inventories which are expensed immediately. The document also describes the acquisition, maintenance, and disposal processes in a computerized fixed asset system and the authorization and verification controls used.
This document discusses controlling as a management function. Controlling involves evaluating performance and applying corrective measures if necessary to ensure activities are producing desired results according to plans. The key aspects of controlling are establishing standards, measuring performance, comparing performance to standards, and taking corrective action if needed. Controlling is important as it reduces uncertainties, prevents waste and misuse of authority, and ensures coordination among management functions. Good control systems are reflective of organizational needs, forward-looking, prompt in reporting deviations, flexible, economical, and motivating. Control techniques include operational controls like financial, operating, and inventory controls as well as overall techniques like ratio analysis and management audits.
Chapter 01 - Principal Accounting (Warren Reeve Fess)Arfan Fahmi
This document provides an overview of accounting and business concepts. It defines key terms like assets, liabilities, owner's equity, and the accounting equation. It describes the different types of businesses and business organizations. It explains the accounting process and financial statements. It provides an example of basic business transactions and how they affect the accounting equation for a sample proprietorship.
Audit of the acquisition and payment cyclesellyhood
This document discusses the audit of the acquisition and payment cycle. It covers testing internal controls, performing substantive tests of transactions, and testing accounts payable. Key parts of the cycle include processing purchase orders and cash disbursements. Analytical procedures and tests of details are used to audit the accounts payable balance. E-commerce has increased electronic linkages between suppliers and customers.
Managerial Accounting Garrison Noreen Brewer Chapter 09Asif Hasan
The document discusses various aspects of budgeting including the basic framework of budgeting, planning and control, advantages of budgeting, responsibility accounting, choosing budget periods, self-imposed budgets, human factors in budgeting, zero-based budgeting, the budget committee, an overview of the master budget, and provides an example of a company preparing budgets for sales, cash collections, and production for a quarter. Budgeting involves quantitative planning to achieve objectives, while control ensures the objectives are attained. Budgets are used by companies to coordinate activities, allocate resources, and communicate plans.
This document contains exam questions about project management concepts such as constraints, organizational structures, and key project documents. It also provides answers to the exam questions.
The document discusses audit evidence and procedures for gathering evidence. It defines audit evidence and its basic principles of independence, integrity, and objectivity. It describes the sources of audit evidence, including physical examination, confirmations, documentation, analytical procedures, inquiries, reperformance, and observation. It discusses factors like audit risk, reliance on controls, materiality, and reliability that influence evidence. It also covers the appropriateness, relevance, reliability, and direction of testing for audit evidence. Finally, it discusses substantive procedures used to detect material misstatements.
What are the common methods of collecting audit evidence? #learnauditing
Read the full story in our blog
https://lnkd.in/g-9NjszJ
𝐕𝐢𝐬𝐢𝐭 𝐮𝐬
Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭,𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
Website www.ktp.com.my
Instagram https://bit.ly/3jZuZuI
Linkedin https://bit.ly/3sapf4l
Telegram http://bit.ly/3ptmlpn
𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients
Website www.thks.com.my
Facebook https://bit.ly/3nQ98rs
This document provides an overview of accounting principles from Chapter 1 of the textbook. It defines accounting as a process of recording and reporting financial information to help decision makers. It discusses the internal and external users of accounting information and how their needs differ. It also introduces the accounting equation that balances assets, liabilities, and owner's equity, and gives examples of how business transactions affect this equation.
Managerial Accounting Garrison Noreen Brewer Chapter 03Asif Hasan
The document describes job-order costing. It provides examples of companies that would likely use job-order costing, such as Boeing, Bechtel International, and Walt Disney Studios. It also contrasts job-order costing with process costing. Job-order costing traces and allocates costs to individual jobs/orders, while process costing assigns average costs per unit for a single product. The document includes examples of forms used in job-order costing, such as a materials requisition form, employee time ticket, and job cost sheet.
The document provides a history of auditing from ancient times to the present day. It discusses how auditing evolved from simple transaction verification to a more risk-based approach focused on evaluating internal controls and sampling. Key developments include the emergence of statutory audits in the 1800s, a shift to the US in the 1920s-1960s, the introduction of materiality and sampling in the mid-1900s, and recent reforms regarding auditor independence and non-audit services. The objectives and role of auditors have changed over time in response to economic conditions and expectations.
Audit of the acquisition and payment cyclesellyhood
The document discusses the acquisition and payment cycle. It covers the key accounts and transactions in the cycle including acquisitions of goods and services, cash disbursements, and purchase returns and allowances. The document also describes the related business functions like processing purchase orders and cash disbursements. It discusses how e-commerce has impacted the cycle through electronic data interchange and business-to-business transactions over the internet. Finally, it outlines the audit procedures for the cycle including understanding internal controls, assessing risks, and designing tests of transactions and account balances like accounts payable.
Factors Affecting Material Management on Construction SiteIRJET Journal
This document summarizes a research paper on factors affecting material management on construction sites. It discusses material management procedures for small, medium, and large construction firms in Maharashtra, India. Key factors found to affect material management included delays due to rejected materials, transportation problems, seasonal issues, labor strikes, communication problems, and material price hikes. Recommendations included using material management software, advanced material storage, applying inventory analysis techniques, and establishing a dedicated material management department. The study aimed to improve material management practices and reduce associated problems and costs on construction projects.
The document provides a history of auditing from ancient times to the present day. It discusses:
1) Auditing originated in ancient civilizations like China, Egypt, and Greece in the form of basic checking activities. Formal auditing began in England during the reign of Henry I when special audit officers examined government accounts.
2) Auditing developed further during the industrial revolution of the 1840s-1920s due to larger businesses raising capital from investors. The role of auditors was mainly fraud detection and assessing company solvency.
3) From the 1920s-1960s, auditing practices advanced with a focus on materiality, sampling techniques, and ensuring truthful financial statements. Reliance
Planning and controlling are interdependent management functions. Planning establishes goals and how they will be achieved, while controlling monitors performance against those goals. Without plans to monitor against, controlling cannot determine if actual performance is acceptable. Likewise, plans must be implemented and followed, which is the role of controlling. Both functions also look backward to learn from past experiences and look forward to apply lessons learned and make adjustments for the future. Together, planning and controlling work to bridge the gap between current and desired performance.
Earning management refers to using accounting techniques to manipulate financial statements. Some common techniques include overestimating expenses to build a "cookie jar" reserve for future use, taking large one-time write-downs or restructuring charges to remove future expenses ("big bath"), and acquiring companies solely to boost current earnings ("big bet on the future"). Motives for earnings management include influencing stock prices, meeting analyst expectations, and managing compensation contracts or regulatory requirements. While some techniques are legal, fraudulent reporting that intentionally misleads investors can have severe consequences, as seen in the 2008 collapse of Lehman Brothers resulting from hidden debt.
This document provides an overview of cost-volume-profit (CVP) analysis concepts including contribution margin, break-even point, CVP graphs, contribution margin ratio, and how changes in variables like sales price, costs, and volume affect profits. It discusses the equation method and contribution margin method for calculating break-even point in units and dollars. Formulas and examples from a sample company called Racing Bicycle are provided to illustrate key CVP terms and calculations.
Fundamentals of planning (Principles of Management)Denni Domingo
This document discusses planning and the planning process. It defines planning as determining how an organization can achieve its objectives and outlines the steps in the planning process. The advantages of planning include helping managers be future-oriented and enhancing decision coordination. Planning involves establishing objectives, considering alternatives, choosing the best path, and implementing plans. The chief executive oversees planning and planners develop organizational plans.
This document provides an introduction to managerial accounting and cost concepts. It distinguishes managerial accounting from financial accounting, explaining that managerial accounting provides information to managers within an organization, while financial accounting provides information to external parties. It also outlines the planning and control cycle used by managers and identifies key differences between managerial and financial accounting, such as their time focus and requirements. Additionally, it defines different types of costs including direct materials, direct labor, manufacturing overhead, and period costs. It also illustrates cost flows and classifications.
This document discusses key concepts in management accounting including:
1) Accounting systems help identify authority over assets and support planning and decision making. Accounting reports provide monitoring, evaluation, and performance rewards.
2) Management accounting involves assigning decision making authority.
3) Costs are classified as product costs, which include direct materials, direct labor, and manufacturing overhead, or period costs like operating expenses.
4) Manufacturing overhead must be allocated to products using a predetermined overhead application rate based on an activity driver like machine hours.
Accounting Standards for Government Entities other than Government Business Enterprises (GBEs). This accounting standard is international standard for Governments, Government Autonomous bodies, Government Financial Institutions (not commercial entities). IFRS is international standard for Corporates, which is applicable to Government Business Enterprises. Different nations have adopted and adapted the IPSAS, Cash or Accrual or modified Cash IPSAS. Governments has named the standards by the name of respective Governments.
This document discusses key concepts in the accounting cycle, including:
- The ledger contains all accounts and records increases and decreases for each account.
- Accounts track increases on the debit side and decreases on the credit side.
- The double-entry system requires equal debit and credit amounts for every transaction to maintain the accounting equation.
- Examples are provided to illustrate how common business transactions are recorded through journal entries and posted to accounts in the ledger, including recording revenues, expenses, assets, and owner's equity.
Lecture 23 expenditure cycle part ii -fixed assets accounting information sy...Habib Ullah Qamar
The document discusses fixed asset systems and their differences from inventory systems. Fixed asset systems process transactions for acquiring, maintaining, and disposing of long-term assets like land, buildings, and equipment. They record asset costs, depreciation, and location. Fixed asset transactions require approval since assets are long-term investments, unlike routine inventory purchases. Additionally, fixed assets are capitalized and depreciated over multiple periods, unlike inventories which are expensed immediately. The document also describes the acquisition, maintenance, and disposal processes in a computerized fixed asset system and the authorization and verification controls used.
This document discusses controlling as a management function. Controlling involves evaluating performance and applying corrective measures if necessary to ensure activities are producing desired results according to plans. The key aspects of controlling are establishing standards, measuring performance, comparing performance to standards, and taking corrective action if needed. Controlling is important as it reduces uncertainties, prevents waste and misuse of authority, and ensures coordination among management functions. Good control systems are reflective of organizational needs, forward-looking, prompt in reporting deviations, flexible, economical, and motivating. Control techniques include operational controls like financial, operating, and inventory controls as well as overall techniques like ratio analysis and management audits.
Chapter 01 - Principal Accounting (Warren Reeve Fess)Arfan Fahmi
This document provides an overview of accounting and business concepts. It defines key terms like assets, liabilities, owner's equity, and the accounting equation. It describes the different types of businesses and business organizations. It explains the accounting process and financial statements. It provides an example of basic business transactions and how they affect the accounting equation for a sample proprietorship.
Audit of the acquisition and payment cyclesellyhood
This document discusses the audit of the acquisition and payment cycle. It covers testing internal controls, performing substantive tests of transactions, and testing accounts payable. Key parts of the cycle include processing purchase orders and cash disbursements. Analytical procedures and tests of details are used to audit the accounts payable balance. E-commerce has increased electronic linkages between suppliers and customers.
Managerial Accounting Garrison Noreen Brewer Chapter 09Asif Hasan
The document discusses various aspects of budgeting including the basic framework of budgeting, planning and control, advantages of budgeting, responsibility accounting, choosing budget periods, self-imposed budgets, human factors in budgeting, zero-based budgeting, the budget committee, an overview of the master budget, and provides an example of a company preparing budgets for sales, cash collections, and production for a quarter. Budgeting involves quantitative planning to achieve objectives, while control ensures the objectives are attained. Budgets are used by companies to coordinate activities, allocate resources, and communicate plans.
This document contains exam questions about project management concepts such as constraints, organizational structures, and key project documents. It also provides answers to the exam questions.
The document discusses audit evidence and procedures for gathering evidence. It defines audit evidence and its basic principles of independence, integrity, and objectivity. It describes the sources of audit evidence, including physical examination, confirmations, documentation, analytical procedures, inquiries, reperformance, and observation. It discusses factors like audit risk, reliance on controls, materiality, and reliability that influence evidence. It also covers the appropriateness, relevance, reliability, and direction of testing for audit evidence. Finally, it discusses substantive procedures used to detect material misstatements.
What are the common methods of collecting audit evidence? #learnauditing
Read the full story in our blog
https://lnkd.in/g-9NjszJ
𝐕𝐢𝐬𝐢𝐭 𝐮𝐬
Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭,𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
Website www.ktp.com.my
Instagram https://bit.ly/3jZuZuI
Linkedin https://bit.ly/3sapf4l
Telegram http://bit.ly/3ptmlpn
𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients
Website www.thks.com.my
Facebook https://bit.ly/3nQ98rs
This document provides an overview of accounting principles from Chapter 1 of the textbook. It defines accounting as a process of recording and reporting financial information to help decision makers. It discusses the internal and external users of accounting information and how their needs differ. It also introduces the accounting equation that balances assets, liabilities, and owner's equity, and gives examples of how business transactions affect this equation.
Managerial Accounting Garrison Noreen Brewer Chapter 03Asif Hasan
The document describes job-order costing. It provides examples of companies that would likely use job-order costing, such as Boeing, Bechtel International, and Walt Disney Studios. It also contrasts job-order costing with process costing. Job-order costing traces and allocates costs to individual jobs/orders, while process costing assigns average costs per unit for a single product. The document includes examples of forms used in job-order costing, such as a materials requisition form, employee time ticket, and job cost sheet.
The document provides a history of auditing from ancient times to the present day. It discusses how auditing evolved from simple transaction verification to a more risk-based approach focused on evaluating internal controls and sampling. Key developments include the emergence of statutory audits in the 1800s, a shift to the US in the 1920s-1960s, the introduction of materiality and sampling in the mid-1900s, and recent reforms regarding auditor independence and non-audit services. The objectives and role of auditors have changed over time in response to economic conditions and expectations.
Audit of the acquisition and payment cyclesellyhood
The document discusses the acquisition and payment cycle. It covers the key accounts and transactions in the cycle including acquisitions of goods and services, cash disbursements, and purchase returns and allowances. The document also describes the related business functions like processing purchase orders and cash disbursements. It discusses how e-commerce has impacted the cycle through electronic data interchange and business-to-business transactions over the internet. Finally, it outlines the audit procedures for the cycle including understanding internal controls, assessing risks, and designing tests of transactions and account balances like accounts payable.
Factors Affecting Material Management on Construction SiteIRJET Journal
This document summarizes a research paper on factors affecting material management on construction sites. It discusses material management procedures for small, medium, and large construction firms in Maharashtra, India. Key factors found to affect material management included delays due to rejected materials, transportation problems, seasonal issues, labor strikes, communication problems, and material price hikes. Recommendations included using material management software, advanced material storage, applying inventory analysis techniques, and establishing a dedicated material management department. The study aimed to improve material management practices and reduce associated problems and costs on construction projects.
The document provides a history of auditing from ancient times to the present day. It discusses:
1) Auditing originated in ancient civilizations like China, Egypt, and Greece in the form of basic checking activities. Formal auditing began in England during the reign of Henry I when special audit officers examined government accounts.
2) Auditing developed further during the industrial revolution of the 1840s-1920s due to larger businesses raising capital from investors. The role of auditors was mainly fraud detection and assessing company solvency.
3) From the 1920s-1960s, auditing practices advanced with a focus on materiality, sampling techniques, and ensuring truthful financial statements. Reliance
Planning and controlling are interdependent management functions. Planning establishes goals and how they will be achieved, while controlling monitors performance against those goals. Without plans to monitor against, controlling cannot determine if actual performance is acceptable. Likewise, plans must be implemented and followed, which is the role of controlling. Both functions also look backward to learn from past experiences and look forward to apply lessons learned and make adjustments for the future. Together, planning and controlling work to bridge the gap between current and desired performance.
Earning management refers to using accounting techniques to manipulate financial statements. Some common techniques include overestimating expenses to build a "cookie jar" reserve for future use, taking large one-time write-downs or restructuring charges to remove future expenses ("big bath"), and acquiring companies solely to boost current earnings ("big bet on the future"). Motives for earnings management include influencing stock prices, meeting analyst expectations, and managing compensation contracts or regulatory requirements. While some techniques are legal, fraudulent reporting that intentionally misleads investors can have severe consequences, as seen in the 2008 collapse of Lehman Brothers resulting from hidden debt.
This document provides an overview of cost-volume-profit (CVP) analysis concepts including contribution margin, break-even point, CVP graphs, contribution margin ratio, and how changes in variables like sales price, costs, and volume affect profits. It discusses the equation method and contribution margin method for calculating break-even point in units and dollars. Formulas and examples from a sample company called Racing Bicycle are provided to illustrate key CVP terms and calculations.
Fundamentals of planning (Principles of Management)Denni Domingo
This document discusses planning and the planning process. It defines planning as determining how an organization can achieve its objectives and outlines the steps in the planning process. The advantages of planning include helping managers be future-oriented and enhancing decision coordination. Planning involves establishing objectives, considering alternatives, choosing the best path, and implementing plans. The chief executive oversees planning and planners develop organizational plans.
This document provides an introduction to managerial accounting and cost concepts. It distinguishes managerial accounting from financial accounting, explaining that managerial accounting provides information to managers within an organization, while financial accounting provides information to external parties. It also outlines the planning and control cycle used by managers and identifies key differences between managerial and financial accounting, such as their time focus and requirements. Additionally, it defines different types of costs including direct materials, direct labor, manufacturing overhead, and period costs. It also illustrates cost flows and classifications.
This document discusses key concepts in management accounting including:
1) Accounting systems help identify authority over assets and support planning and decision making. Accounting reports provide monitoring, evaluation, and performance rewards.
2) Management accounting involves assigning decision making authority.
3) Costs are classified as product costs, which include direct materials, direct labor, and manufacturing overhead, or period costs like operating expenses.
4) Manufacturing overhead must be allocated to products using a predetermined overhead application rate based on an activity driver like machine hours.
This document discusses key accounting concepts related to manufacturing operations including:
- Direct materials, direct labor, and manufacturing overhead are the primary costs that make up the cost of goods manufactured.
- Manufacturing costs flow through work in process and finished goods inventory accounts until the goods are ultimately sold.
- Companies use predetermined overhead rates to apply manufacturing overhead costs to inventory and cost of goods sold.
Managerial accounting provides information to managers within an organization to help plan and control operations, while financial accounting provides information to external parties to aid in financial decisions. Some key differences between the two include users, time focus, requirements to follow GAAP, and emphasis on either verifiability or relevance for decision making. Cost accounting involves classifying and analyzing costs to determine the costs of products, services, or other cost objects. Important cost accounting concepts include direct and indirect costs, product versus period costs, and inventory flows through raw materials, work in process, and finished goods.
| Managerial Accounting | Chapter 1 | An Overview to Managerial Accounting | ...Ahmad Hassan
Chapter 1: an overview of managerial accounting -- managerial accounting and financial accounting, work of management, planning and control cycle, differences b/w managerial accounting and financial accounting, comparing merchandising and manufacturing activities, Chapter 2: managerial accounting and cost concepts -- classifications of costs, manufacturing and non-manufacturing costs, product costs versus period costs, cost classifications for predicting cost behavior, fixed costs and variable costs, direct and indirect costs, differential costs and revenues, opportunity and sunk costs.
This document provides an introduction to managerial accounting and cost concepts. It defines key terms such as direct costs, indirect costs, product costs, period costs, cost drivers, cost behavior, and classifications of costs as either variable or fixed. Cost behavior is explained as how costs are affected by and change with business activity levels. Cost drivers are the specific activity measures that cause costs to change, such as labor hours or machine hours. Variable costs change directly with changes in the cost driver, while fixed costs remain unchanged within the relevant range of activity.
This document discusses various cost classifications that are important for managerial accounting. It covers direct and indirect costs, which are used to assign costs to cost objects. The three basic manufacturing cost categories are direct materials, direct labor, and manufacturing overhead. Product costs and period costs are important for preparing financial statements. Variable costs fluctuate with activity levels, while fixed costs remain constant; mixed costs have both variable and fixed components. Understanding these cost classifications is essential for managerial decision making and control.
The Changing Role of Managerial Accounting in a GLOBAL Business EnvironmentAbdullah Rabaya
This document discusses basic cost management concepts and accounting for mass customization operations. It defines key cost terms like product costs, period costs and expenses. It also describes how costs are classified on financial statements and provides examples of manufacturing costs like direct material, direct labor and manufacturing overhead. The document shows schedules for calculating cost of goods manufactured and sold. It includes an example income statement for a manufacturer to illustrate how costs flow through the financial statements.
The document provides an overview of accounting concepts including definitions, users, and types of costs. It defines accounting as the process of identifying, measuring and communicating economic information. Managerial accounting provides internal information to managers, while financial accounting provides external information. Cost concepts are defined, including direct materials, direct labor, manufacturing overhead, and period versus product costs. The classifications of inventory for manufacturers are also discussed.
POHR = $4 per DLH
Actual overhead applied = POHR x Total DLH
= $4 x 170,000 DLH
= $680,000
Therefore, actual overhead incurred ($650,000) is less than overhead applied ($680,000). An adjustment is required.
Managerial accounting assists management in planning, decision-making, and controlling operations. It provides both financial and non-financial information to internal users like managers. Managerial accounting determines product costs, evaluates performance, plans budgets, and evaluates decisions. It differs from financial accounting which prepares external financial reports for shareholders and regulators. Manufacturing costs include direct materials, direct labor, and factory overhead. Product costs become inventory until goods are sold, then become cost of goods sold. Period costs are expenses matched to a time period like selling and administrative costs.
Managerial accounting assists management in planning, decision-making, and controlling operations. It provides both financial and non-financial information to internal users like managers. Managerial accounting determines product costs, evaluates performance, plans budgets, and evaluates decisions. It differs from financial accounting which prepares external financial reports for shareholders and regulators. Manufacturing costs include direct materials, direct labor, and factory overhead. Product costs become inventory until goods are sold, then become cost of goods sold. Period costs are expenses matched to a time period like selling and administrative costs.
This document contains excerpts from a textbook chapter on cost accounting. It defines and provides examples of different types of costs including direct materials, direct labor, manufacturing overhead, prime costs, conversion costs, product costs and period costs. It also explains the classification of costs as variable or fixed and how they behave with changes in activity levels. Manufacturing cost flows and inventory valuations are demonstrated through examples of raw materials, work in process, finished goods and cost of goods sold calculations.
Chapter 2 Managerial Accounting and Cost Concepts.pptjoellynpatrona
The document discusses key concepts in managerial accounting including the functions of management, planning and control, cost classifications, and inventory accounting. It defines direct materials, direct labor, and manufacturing overhead as the three basic manufacturing cost categories. It also distinguishes between product costs and period costs, with examples of each. Finally, it covers the differences between variable and fixed costs, direct and indirect costs, and defines differential costs, opportunity costs, and sunk costs.
This document discusses manufacturing costs and their classification. It defines three basic manufacturing cost categories: direct materials, direct labor, and manufacturing overhead. It also distinguishes between product costs (direct materials, direct labor, manufacturing overhead) and period costs (selling costs, administrative costs). The document provides examples of costs that fall under each category and presents schedules for calculating cost of goods manufactured and cost of goods sold.
Direct materials used, direct labor cost, prepare statement of wip, prepare income statement. The document provides information on materials purchased and on hand at the beginning and end of the year, as well as direct labor hours worked and costs. It requests the calculation of direct materials used, direct labor cost, and the preparation of a statement of work in process and income statement.
Introduction to Managerial Accounting and Cost ConceptsViệt Hoàng Dương
The document provides an overview of managerial accounting concepts including the four functions of management, planning and control cycles, classifications of manufacturing costs, and distinctions between product and period costs. It defines direct materials, direct labor, and manufacturing overhead as the three basic manufacturing cost categories. Product costs include direct materials, direct labor, and manufacturing overhead, and are recorded in inventory accounts. Period costs are expensed on the income statement as incurred rather than included in inventory.
The document also discusses the schedule of cost of goods manufactured, which calculates manufacturing costs to determine the cost of goods produced during a period. It distinguishes between variable costs, which change with activity levels, and fixed costs, which remain constant with changes in activity.
The document discusses managerial accounting concepts including the work of management (planning, controlling, directing and motivating), manufacturing costs (direct materials, direct labor, manufacturing overhead), and cost flows. It provides learning objectives on the differences between financial and managerial accounting, manufacturing cost categories, distinguishing product and period costs, and preparing income statements and schedules of manufacturing costs. Key points include defining direct materials, direct labor, manufacturing overhead, and period costs. Formulas are given for calculating cost of goods sold and manufacturing costs.
This document provides an overview of manufacturing costs and cost accounting concepts. It defines key cost terms like direct materials, direct labor, manufacturing overhead, and period costs. It explains how costs flow through the production process and are classified for financial reporting and inventory valuation purposes. Manufacturing costs include direct materials, direct labor, and manufacturing overhead, which are used to calculate cost of goods manufactured and sold. The chapter compares merchandising and manufacturing businesses and their different inventory and income statement presentations.
This document describes process costing methods. It covers 5 steps in process costing: 1) summarizing physical units, 2) computing equivalent units, 3) computing equivalent unit costs, 4) summarizing total costs, and 5) assigning costs to completed units and work-in-process inventory. It provides examples of using the weighted average and FIFO methods for a company with two production departments, showing how to calculate equivalent units, costs, and journal entries under each method.
Job costing is a method of costing used when production is done according to specific customer orders rather than for stock. Key aspects include: each job has unique characteristics requiring special treatment; costs are tracked by job and determined after completion; work in progress varies depending on number of active jobs. Job costing helps determine profit/loss on each job, estimate future job costs, control efficiency, and value work in progress. Advantages include cost analysis and control, determining profitable jobs, and estimating costs for future planning. Disadvantages include clerical work, risk of error, and difficulty with cost comparisons over time.
This document discusses accounting for factory overhead costs. It covers identifying variable and fixed overhead costs, budgeting overhead, accumulating actual overhead costs, applying overhead to production using predetermined overhead rates, and accounting for differences between actual and applied overhead. Methods discussed include direct labor cost rate, direct labor hour rate, and activity-based costing. The document also addresses distributing service department costs and treating under- or over-applied overhead.
The document discusses materials costing and control. It defines direct and indirect materials and explains how materials are accounted for as they move through the production process. It also covers determining the optimal purchase quantity to minimize total inventory costs, identifying stock losses through periodic stocktaking, and accounting for discrepancies between physical and book stock values.
This document discusses accounting for labor costs. It covers topics such as direct and indirect labor costs, hourly and piece-rate payment plans, payroll procedures, recording of labor time and costs, and accounting entries. Payroll costs are initially recorded through journal entries that allocate wages to accounts like work in process, overhead, and liabilities for taxes. Labor costs then flow from time records to job cost and overhead ledgers to the general ledger.
This document discusses process costing and compares it to job order costing. Process costing is used when a company mass produces uniform products continuously. Costs are tracked by production department rather than individual jobs. Equivalent units of production are calculated using the weighted average method to determine the cost per unit. The key document is the production cost report which shows quantity, costs and unit costs by department. A comprehensive example is provided to illustrate calculating equivalent units, unit costs and completing a production cost report for the mixing department of a company that makes waffles.
Management accounting provides information to managers for planning, control, and evaluation. It has become increasingly important as organizations face new trends like customer focus, quality focus, and short product life cycles. Management accounting is less regulated than financial accounting and provides decision support and control support. The goals of management accounting are to improve value and enhance decision making. It uses a single accounting system for multiple purposes like decisions, control, and taxes. Professional certifications in management accounting emphasize competencies like problem solving, communication, and ethics.
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A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
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This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
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• Present the Onion Diagram, a tool for contextualizing task-level goals
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Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.