Understand the various aspects of maintain inventory records, that handles your two principal financial statements ie Income Statement and Balance Sheet.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
Understand the various aspects of maintain inventory records, that handles your two principal financial statements ie Income Statement and Balance Sheet.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
A power point presentation describing some basic definitions, father of cost accounting, Indian aspect of cost accounting and Various Methods and Techniques of costing.
Presented by: Aquib Ali, Ajay Gupta and Ashwin Showi. (M.Com students)
at the Bhopal School of Social Sciences(BSSS) on 6 September, 2017
AS 2 i.e. Accounting Standard 2: Valuation of Inventories is one of the accounting standards repeatedly asked in many exams.
QLI is one of the best IPCC Classes in Mumbai (www.qli.co.in)
What is job costing? What are its main characteristics?
Characteristics
Features
procedure involve in job order costing.
Applicability
What is BEP? List out the assumption of breakeven analysis
Assumption of BEP analysis
What is Profit Volume (P/V) Ratio
What is CVP analysis? How does it help the management?
What is process costing? What are its main characteristics? Name the industries where process costing can be applied.
Normal Loss
Abnormal Loss
Abnormal Gain
Job Costing & Process Costing
Accounting for losses in process costing
What do you mean by operating costing? Draw a specimen cost sheet for transport costing.
INDUSTRY AND CORRESPONDING COST UNIT
RECONCILIATION STATEMENT
A power point presentation describing some basic definitions, father of cost accounting, Indian aspect of cost accounting and Various Methods and Techniques of costing.
Presented by: Aquib Ali, Ajay Gupta and Ashwin Showi. (M.Com students)
at the Bhopal School of Social Sciences(BSSS) on 6 September, 2017
AS 2 i.e. Accounting Standard 2: Valuation of Inventories is one of the accounting standards repeatedly asked in many exams.
QLI is one of the best IPCC Classes in Mumbai (www.qli.co.in)
What is job costing? What are its main characteristics?
Characteristics
Features
procedure involve in job order costing.
Applicability
What is BEP? List out the assumption of breakeven analysis
Assumption of BEP analysis
What is Profit Volume (P/V) Ratio
What is CVP analysis? How does it help the management?
What is process costing? What are its main characteristics? Name the industries where process costing can be applied.
Normal Loss
Abnormal Loss
Abnormal Gain
Job Costing & Process Costing
Accounting for losses in process costing
What do you mean by operating costing? Draw a specimen cost sheet for transport costing.
INDUSTRY AND CORRESPONDING COST UNIT
RECONCILIATION STATEMENT
Prinsip biaya yang diterapkan untuk asset tetap mencakup seluruh pengeluaran yg dibutuhkan untuk memperoleh aset dan membuat aset itu siap digunakan.
Harga perolehan diukur dengan kas atau setara kas yang dibayarkan
Cost Accounts - Classification of manufacturing costs - Accounting for manufacturing costs. Cost Accounting Systems: Job order costing - Process costing- Activity Based Costing- Costing and the value chain- Target costing- Marginal costing including decision making- Budgetary Control & Variance Analysis - Standard cost system.
Class 02 Managerial Accounting chapter 2.pptxAbbasHaiderAli1
Managerial accounting, also known as management accounting, is a branch of accounting that deals with the identification, measurement, analysis, interpretation, and communication of financial information to internal users, primarily managers, to aid in their decision-making process.
Unlike financial accounting, which is primarily concerned with reporting financial information to external stakeholders such as investors, creditors, and regulators, managerial accounting is focused on providing information to managers within an organization. This information is used for planning, controlling, and decision-making purposes to help achieve the organization's objectives.
One of the key functions of managerial accounting is cost accounting, which involves the allocation and analysis of costs associated with producing goods or providing services. Cost accounting techniques, such as job costing, process costing, and activity-based costing, help managers understand the cost structure of their products or services and make informed decisions regarding pricing, production, and resource allocation.
Managerial accountants also play a crucial role in budgeting and forecasting. They work closely with managers to develop budgets for various aspects of the organization, such as sales, production, and capital expenditures. By comparing actual performance against budgeted targets and analyzing variances, managerial accountants help identify areas of concern and opportunities for improvement.
Another important aspect of managerial accounting is performance evaluation. Managers rely on financial and non-financial performance measures to assess the effectiveness of their decisions and the performance of their departments or divisions. Key performance indicators (KPIs) such as return on investment (ROI), profitability ratios, and customer satisfaction scores provide valuable insights into the organization's overall performance and help managers identify areas that require attention.
In addition to providing quantitative information, managerial accountants also analyze qualitative factors that may impact decision-making, such as market trends, competitive pressures, and regulatory changes. They use tools such as cost-volume-profit (CVP) analysis, sensitivity analysis, and scenario planning to evaluate the potential outcomes of different courses of action and mitigate risks.
Overall, managerial accounting plays a vital role in helping managers navigate the complexities of modern business environments by providing timely, relevant, and reliable information to support decision-making and drive organizational success.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the what'sapp contact of my personal pi merchant to trade with
+12349014282
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
how to sell pi coins in Hungary (simple guide)DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the what'sapp contact of my personal pi merchant below. 👇
+12349014282
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the what'sapp contact of my personal vendor.
+12349014282
#pi network #pi coins #legit #passive income
#US
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
2. CHAPTER 20
MANAGERIAL
ACCOUNTING
After studying this chapter, you should be able to:
1.
2.
3.
4.
5.
Explain the distinguishing features of managerial
accounting.
Identify the 3 broad functions of management.
Define the 3 classes of manufacturing costs.
Distinguish between product and period costs.
Explain the difference between a merchandising
and a manufacturing income statement.
3. CHAPTER 20
MANAGERIAL
ACCOUNTING
After studying this chapter, you should be able to:
1. Indicate how cost of goods manufactured is
determined.
2. Explain the difference between a
merchandising and a manufacturing balance
sheet.
4. MANAGERIAL ACCOUNTING
BASICS
STUDY OBJECTIVE 1
Management Accounting
• A field of accounting that provides
economic and financial information for
managers and other internal users.
5. MANAGERIAL ACCOUNTING
BASICS
Activities include:
•
•
•
•
Explaining manufacturing and
nonmanufacturing costs and how they are
reported in the financial statements
Computing the cost of providing a service or
manufacturing a product
Determining the behavior of costs and
expenses as activity levels change
Analyzing cost-volume profit relationships
within a company
6. MANAGERIAL ACCOUNTING
BASICS
Activities include (continued):
• Assisting management in profit planning and
budgeting
• Providing a basis for controlling costs and
expenses by comparing actual results with planned
objectives and standard costs
• Accumulating and presenting relevant data for
management decision making
8. ETHICAL STANDARDS
FOR MANAGERIAL
ACCOUNTANTS
•
•
Managerial Accountants have an ethical
obligation to their companies and the public
The Institute of Management Accountants
(IMA) developed a code of ethical standards
which divides the managerial accountant’s
responsibilities into 4 areas:
–
–
–
–
Competence
Confidentiality
Integrity
Objectivity
10. PLANNING
Planning requires management to:
• Look ahead
• Establish objectives
• Add value to the business under its control (as
measured by company’s stock price or its
potential selling price)
11. DIRECTING AND MOTIVATING
Directing and Motivating requires management to:
•
•
•
•
Coordinate a company’s activities
Implement planned objectives
Select and train employees
Prepare organization charts
12. CONTROLLING
Controlling requires management to:
• Keep the firm’s activities on track
• Determine whether planned goals are being met
• Decide what changes are needed if goals are not
met
13. MANAGERIAL
COST CONCEPTS
•
•
•
•
Managers need information related to
costs, such as:
What costs are involved in making the
product or providing a service?
If production volume is decreased, will
costs decrease?
What impact will automation have on total
costs?
How can costs best be controlled?
14. MANAGERIAL
COST CONCEPTS
• Manufacturing: Activities and processes
that convert raw materials into finished
goods.
• Manufacturing Costs include:
– Direct materials
– Direct labor
– Manufacturing overhead
15. Managerial accounting:
a. is governed by generally accepted accounting principles.
b. places emphasis on special-purpose information.
c. pertains to the entity as a whole and is highly
aggregated.
d. is limited to cost data.
Chapter 20
16. Managerial accounting:
a. is governed by generally accepted accounting principles.
b. places emphasis on special-purpose information.
c. pertains to the entity as a whole and is highly
aggregated.
d. is limited to cost data.
Chapter 20
18. MANUFACTURING
COSTS DIRECT
MATERIALS
Raw materials
• The basic materials and parts that used in the
manufacturing process
• Raw materials physically and directly associated
with the finished product are called direct
materials
Materials
19. INDIRECT MATERIALS
•
Indirect Materials are raw materials which
cannot be easily associated with the finished
product.
•
•
•
Not physically part of the finished product
Cannot be traced because their physical
association with the finished product is too small
in terms of cost
Accounted for as part of Manufacturing
Overhead
20. LABOR
• Direct Labor: The work of factory employees which
is physically and directly associated with converting
raw materials into finished goods.
• Indirect Labor: Efforts which have no physical
association with the finished product or it’s
impractical to trace the costs.
• Indirect Labor: Classified as Manufacturing
Overhead
Factory
Labor
21. MANUFACTURING
OVERHEAD
•Consists of costs that are indirectly associated
with manufacturing the finished product.
•Includes:
• Indirect materials
• Indirect labor
• Depreciation on factory buildings and machines
• Insurance, taxes, maintenance on
factory facilities
Manufacturing
Overhead
22. PRODUCT COSTS VERSUS
PERIOD COSTS
STUDY OBJECTIVE 4
Product costs:
• include each of the manufacturing cost elements
(direct materials, direct labor, and manufacturing
overhead)
• are a necessary and integral part of producing the
finished product
• are recorded as inventory and not expensed to cost of
goods sold until the time of sale
23. PRODUCT COSTS VERSUS
PERIOD COSTS
Period costs:
•
•
•
•
•
are identifiable with a specific time period
are nonmanufacturing costs
are not included in inventory
include selling and administrative expenses
are deducted from revenues in the period incurred
24. PRODUCT VERSUS
PERIOD COSTS
Product Costs
Manufacturing
Costs
{
Direct Materials
Direct Labor
Manufacturing
Overhead
Period Costs
Nonmanufacturing
Costs
{
Selling Expenses
Administrative
Expenses
26. COST OF GOODS SOLD SECTION
OF A MERCHANDISING COMPANY
The cost of goods sold sections for merchandising
company includes cost of goods purchased:
27. COST OF GOODS SOLD SECTION OF A
MANUFACTURING COMPANY
The cost of goods sold sections for
manufacturing company includes cost of goods
manufactured:
28. COST OF GOODS
SOLD COMPONENTS
Merchandiser
Beginning
Merchandise
Inventory
+
Cost of Goods
Purchased
-
Ending
Merchandise
Inventory
=
Cost of
Goods Sold
Manufacturer
Beginning
Finished Goods
Inventory
+
Cost of Goods
Manufactured
-
Ending
Finished Goods
Inventory
=
29. COST OF GOODS
MANUFACTURED
FORMULA
STUDY OBJECTIVE 6
Beginning
Work in
Process
Inventory
Total Cost of
Work in Process
Total Current
Manufacturing
Costs
+
-
Ending Work
in Process
Inventory
=
=
Total Cost of
Work in
Process
Cost of Goods
Manufactured
30. COST OF GOODS
MANUFACTURED
SCHEDULE
The Cost of
Goods
Manufactured
Schedule – as
shown on the
right is an
internal
financial
schedule that
shows each of
the cost
elements.
31. The sum of the direct materials costs, direct labor
costs, and manufacturing overhead incurred is
the:
a. cost of goods manufactured.
b. total manufacturing overhead.
c. total manufacturing costs.
d. total cost of work in process.
Chapter 20
32. The sum of the direct materials costs, direct labor
costs, and manufacturing overhead incurred is
the:
a. cost of goods manufactured.
b. total manufacturing overhead.
c. total manufacturing costs.
d. total cost of work in process.
Chapter 20
33. CURRENT ASSETS SECTIONS
MERCHANDISING AND MANUFACTURING
BALANCE SHEETS
Merchandiser
STUDY OBJECTIVE 7
One inventory category
Manufacturer
Three inventory accounts:
• Finished Goods Inventory
• Work in Process Inventory
• Raw Materials Inventory
36. ASSIGNMENT OF
COSTS TO COST
CATEGORIES
The manufacturing and selling costs can be
assigned to the various categories shown below.
Cost Item
1. Material cost ($10 per door)
2. Labor costs ($8 per door)
3. Depreciation on new equipment
($25,000 per year)
4. Property taxes ($6,000 per year)
5. Advertising costs ($30,000 per year)
6. Sales commissions ($4 per door)
7. Maintenance salaries ($28,000 per
year)
8. Salary of plant manager ($70,000)
9. Cost of shipping pre-hung doors
($12 per door)
Product Costs
Direct
Direct Manufacturing
Materials
Labor
Overhead
Period
Costs
X
X
X
X
X
X
X
X
X
37. COMPUTATION OF TOTAL
MANUFACTURING COSTS
Total manufacturing costs are the sum of the product costs
– direct materials, direct labor, and manufacturing overhead
costs. Northridge Company produces 10,000 pre-hung wooden
doors the first year. The total manufacturing costs are:
Cost Number and Item
1. Material cost ($10 X 10,000)
2. Labor cost ($8 X 10,000)
3. Depreciation on new equipment
4. Property taxes
7. Maintenance salaries
8. Salary of plant manager
Total manufacturing costs
Manufacturing
Cost
$ 100,000
80,000
25,000
6,000
28,000
70,000
$ 309,000
38. CONTEMPORARY
DEVELOPMENTS IN
MANAGERIAL ACCOUNTING
Contemporary business managers demand
different and better information than they
needed just a few years ago. Managerial
accountants will need to address:
• Service industry trends
• Value chain management
39. SERVICE INDUSTRY TRENDS
Managers of service companies look to
managerial accountants to answer questions
such as:
•
•
•
•
Transportation: Service a new route?
Package delivery services: What fee structure to use?
Telecommunications: Invest in a new satellite?
Professional services: How productive are staff
members?
• Financial institutions: Build a new branch?
• Health Care: Invest in new equipment?
40. VALUE CHAIN MANAGEMENT
• Value chain consists of all activities associated
with providing a product or service
• Each activity must add value to the product or service
and include:
–
–
–
–
–
–
Research and development
Ordering raw materials
Manufacturing
Marketing
Delivery
Customer relations
• Supply chain consists of all activities from
receipt of an order to product or service delivery
41. VALUE CHAIN AND SUPPLY
CHAIN MANAGEMENT
Managing the value chain and supply chain
requires:
• Technological changes such as enterprise
resource planning (ERP) to centralize and
integrate information
• Just-in-time inventory methods to deliver
goods just in time for use, lowering inventory
costs
42. VALUE CHAIN AND SUPPLY
CHAIN MANAGEMENT
Managing the value chain and supply chain
requires (continued):
• Total Quality Management (TQM) to reduce
defects in finished products
• Activity Based Costing (ABC) to focus on
activities that produce costs, and to then
scrutinize and control those costs