This presentation covers introduction,meaning,definition,characteristics,objectives,advantages,limitations,essential conditions for an effective system & methods of standard costing.
This PPT contains the full detail of topic leverage in financial management
it covers following topics :-
Meaning of Leverage
Types of Leverage
Operating Leverage
Financial Leverage
Difference between Operating & Financial Leverage
Combined Leverage
Illustrations
Exercise
This ppt covers the following points :-
1. introduction of management accounting
2. Definition of management accounting
3. Nature, objective, tools and techniques, significance and limitations of management accounting
4. difference between financial and management accounting and also includes difference between cost and management accounting
5. management accountant and its roles
6. Management accounting organisation
This analysis is an important tool used to optimize the capital structure for highest earnings for shareholders
It helps in understanding the sensitivity of EPS at given level of Earning before Interest & Tax under different sources of financing
It helps in analyzing how capital structure decision is important to raise the value of firm
An optimal financing structure minimizes the cost of capital and maximizes the earnings
Earning Per Share under different Capital structure plans
Plan 1 ( Only Equity Shares )
EPS = (EBIT (1−Tax rate))/(No. of Outstanding Shares)
Plan 2 ( Equity Shares & Debt )
EPS = ((EBIT −Interest) (1−Tax rate))/(No. of Outstanding Shares)
Plan 3 (Equity, Debt & Preference Shares)
EPS = ((EBIT −Interest) (1−Tax rate)−Pref. Dividend)/(No. of Outstanding Shares)
Plan 4 (Equity shares & Preference Shares)
EPS = (EBIT (1−Tax rate)−Pref. Dividend)/(No. of Outstanding Shares)
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This PPT contains the full detail of topic leverage in financial management
it covers following topics :-
Meaning of Leverage
Types of Leverage
Operating Leverage
Financial Leverage
Difference between Operating & Financial Leverage
Combined Leverage
Illustrations
Exercise
This ppt covers the following points :-
1. introduction of management accounting
2. Definition of management accounting
3. Nature, objective, tools and techniques, significance and limitations of management accounting
4. difference between financial and management accounting and also includes difference between cost and management accounting
5. management accountant and its roles
6. Management accounting organisation
This analysis is an important tool used to optimize the capital structure for highest earnings for shareholders
It helps in understanding the sensitivity of EPS at given level of Earning before Interest & Tax under different sources of financing
It helps in analyzing how capital structure decision is important to raise the value of firm
An optimal financing structure minimizes the cost of capital and maximizes the earnings
Earning Per Share under different Capital structure plans
Plan 1 ( Only Equity Shares )
EPS = (EBIT (1−Tax rate))/(No. of Outstanding Shares)
Plan 2 ( Equity Shares & Debt )
EPS = ((EBIT −Interest) (1−Tax rate))/(No. of Outstanding Shares)
Plan 3 (Equity, Debt & Preference Shares)
EPS = ((EBIT −Interest) (1−Tax rate)−Pref. Dividend)/(No. of Outstanding Shares)
Plan 4 (Equity shares & Preference Shares)
EPS = (EBIT (1−Tax rate)−Pref. Dividend)/(No. of Outstanding Shares)
Thank You For Waching
Subscribe to DevTech Finance
Under this technique all costs are classified into fixed costs and variable costs. Only variable costs are considered product costs and are allocated to products manufactured. These costs include direct materials, direct labor, direct expenses and variable overhead. Fixed costs are not considered for computing the cost of products or valuation of inventory.
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
Responsibility accounting is a system of dividing an organization into similar units, each of which is to be assigned particular responsibilities. These units may be in the form of divisions, segments, departments, branches, product lines and so on. Each department is comprised of individuals who are responsible for particular tasks or managerial functions. The managers of various departments should ensure that the people in their department are doing well to achieve the goal. Responsibility accounting refers to the various concepts and tools used by managerial accountants to measure the performance of people and departments in order to ensure that the achievement of the goals set by the top management.
Responsibility accounting, therefore, represents a method of measuring the performances of various divisions of an organization. The test to identify the division is that the operating performance is separately identifiable and measurable in some way that is of practical significance to the management. Responsibility accounting collects and reports planned and actual accounting information about the inputs and outputs of responsibility centers.
Approaches to determine appropriate capital structure - EBIT-EPS Approch
anybody can join my google class (financial Mangement)
by entering class code : avkkvj5
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.
Under this technique all costs are classified into fixed costs and variable costs. Only variable costs are considered product costs and are allocated to products manufactured. These costs include direct materials, direct labor, direct expenses and variable overhead. Fixed costs are not considered for computing the cost of products or valuation of inventory.
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
Responsibility accounting is a system of dividing an organization into similar units, each of which is to be assigned particular responsibilities. These units may be in the form of divisions, segments, departments, branches, product lines and so on. Each department is comprised of individuals who are responsible for particular tasks or managerial functions. The managers of various departments should ensure that the people in their department are doing well to achieve the goal. Responsibility accounting refers to the various concepts and tools used by managerial accountants to measure the performance of people and departments in order to ensure that the achievement of the goals set by the top management.
Responsibility accounting, therefore, represents a method of measuring the performances of various divisions of an organization. The test to identify the division is that the operating performance is separately identifiable and measurable in some way that is of practical significance to the management. Responsibility accounting collects and reports planned and actual accounting information about the inputs and outputs of responsibility centers.
Approaches to determine appropriate capital structure - EBIT-EPS Approch
anybody can join my google class (financial Mangement)
by entering class code : avkkvj5
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.
Instructions· This is a group assignment with only 4 .docxnormanibarber20063
Instructions:
· This is a group assignment with only 4 members. As discussed and explained in the class, this assignment is a Case study.
· The students should read and analyze the Case study and submit their report.
· The report should contain the following:
The Assignment should cover the following points:
1. Brief Overview (Describe the Company and issues discussed)
2. Situation Analysis (SWOT)
3. Key Issues (Symptoms/Problems)
4. Alternatives (A set of strategic alternatives that have a potential to solve the problem)
5. Evaluation of Alternatives (How well does the alternative address the issue stated? / List the pros and cons of each alternative)
6. Recommendation
7. Implementation Plan (Steps to follow constrained by budget and timeline/Short term and long term plan/Always look for appendices)
8. Risk and Mitigation (List all the challenges that would prevent the company from successfully implementing the proposed solution/List risk mitigation strategies for every challenge)
Rubric for Report: 20 marks
Category
Failed
0-1
Partially
2
Mostly
3
Absolutely
4
Key Issue(s)
Did not identify Key Issues
Partially identified Key Issues
Mostly identified Key Issues
Absolutely identified Key Issues
Relevant Factors
Did not analyze Relevant Factors
Partially analyzed Relevant Factors
Mostly analyzed Relevant Factors
Absolutely analyzed Relevant Factors
Alternatives (Identify)
Did not develop realistic Alternatives
Partially developed realistic Alternatives
Mostly developed realistic Alternatives
Absolutely developed realistic Alternatives
Alternatives (Evaluate)
Did not evaluate Alternatives
Partially evaluated Alternatives
Mostly evaluated Alternatives
Absolutely evaluated Alternatives
Recommendation
Did not select a Recommendation to address key issues
Partially selected a Recommendation to address key issues
Mostly selected a Recommendation to address key issues
Absolutely selected a Recommendation to address key issues
Date of Submission: WEEK 6
BEST WISHES
Activity-Based Costing: A Tool for Manufacturing
Excellence
ABC is a strategic weaoon in the Quest for comoetitive oosition.
By Peter B.B. Turney, Ph.D.
This article exammes rne role of
actiVity-based costing in the
achievement of manufacturing ex-
cellence. It describes manufacturing
excellence and the product cost in-
formation requirements of managers
who seek to achieve it. It shows
how conventional product costing
fails to meet these needs, and dem-
onstrates how activity-based cost-
ing corrects these deficiencies. It
explains how managers in manufac-
turing companies can use activity-
based costing for strategic, product
design, and continuous improve-
ment purposes. Finally, the article
lays to rest fears that activity-based
costing may be too costly and com-
plex to be compatible with manu-
facturing excellence.
A chieving and sustaining a com-petitive advantage via manufac-
turing excellence requires attention
to all .
This document will deal with several cost reduction techniques such as target costing, life cycle costing, Pareto analysis etc.
Further, it consist a quick view of environmental cost management and accounting.
Required ResourceTextSchneider, A. (2017). Managerial Accounti.docxaudeleypearl
Required Resource
Text
Schneider, A. (2017). Managerial Accounting: Decision making for the service and manufacturing sectors (2nd ed.) [Electronic version]. Retrieved from https://content.ashford.edu/
· Chapter 5: Joint Cost Allocation and Variable Costing
· Chapter 8: Cost Control Through Standard Costs
Recommended Resource
Multimedia
Crosson, S. (2007). PVA ABC JIT – 4 ABC example (Links to an external site.) [Video File]. Retrieved from http://www.youtube.com/watch?v=eyH4l3VvOCU
Discussion 1 Allocating Joint Costs
Describe the three methods used to allocate joint costs. What are the advantages/disadvantages of each allocation method? Which method would you recommend? Why? Support your position with evidence from the text or external sources. Your initial post should be 200-250 words.
Guided Response: Review several of your classmates’ postings. Respond to at least two of your classmates by asking a question to challenge their recommended allocation method. Support your question and/or comments with evidence from the text or external sources.
Discussion 2 Variable/Absorption Costing
As you read in Chapter 8, there are arguments (for and against) variable costing and absorption costing. Select one of these costing methods and explore the various arguments. Determine whether you are “for” or “against” this selected method. Provide evidence from the text to support your position. Your initial post should be 200-250 words.
Guided Response: Review several of your classmates’ postings. Respond to at least two of your classmates who explored a different costing method than your own by stating whether you agree or disagree with their position. Be sure to include cited support/examples to clarify your point of view.
LearningObjectives
After studying Chapter 8, you will be able to:
Explain the signi�icance of pro�it analysis for an organization.
Describe the major characteristics and conditions of a standard cost system.
Understand the information contained in a standard cost sheet.
Compute materials price and usage variances, and identify potential causes of such variances.
Compute labor rate and ef�iciency variances, and identify potential causes of such variances.
Explain the major considerations that are the basis of standard costs for overhead and compute
budget variances and capacity variances for overhead.
Explain why the capacity variance is related only to �ixed overhead costs.
Understand issues relating to variance investigation and disposal of variances.
8 Cost Control Through Standard Costs
nd3000/iStock/Thinkstock
Explain how standard costs can be used in various different settings.
Describe ethical considerations relating to standards and variances.
WhereDoIStartWithStandardCosts?
Jean-Claude Recca, President of Rue de Lorraine, a chain of fast-food restaurants in central France, just
returned from a reunion of his INSEAD graduating class. During the day of activities in the Riviera, he talked
with several o ...
LearningObjectivesAfter studying Chapter 8, you will be a.docxcroysierkathey
LearningObjectives
After studying Chapter 8, you will be able to:
Explain the signi�icance of pro�it analysis for an organization.
Describe the major characteristics and conditions of a standard cost system.
Understand the information contained in a standard cost sheet.
Compute materials price and usage variances, and identify potential causes of such variances.
Compute labor rate and ef�iciency variances, and identify potential causes of such variances.
Explain the major considerations that are the basis of standard costs for overhead and compute
budget variances and capacity variances for overhead.
Explain why the capacity variance is related only to �ixed overhead costs.
Understand issues relating to variance investigation and disposal of variances.
8 Cost Control Through Standard Costs
nd3000/iStock/Thinkstock
Explain how standard costs can be used in various different settings.
Describe ethical considerations relating to standards and variances.
WhereDoIStartWithStandardCosts?
Jean-Claude Recca, President of Rue de Lorraine, a chain of fast-food restaurants in central France, just
returned from a reunion of his INSEAD graduating class. During the day of activities in the Riviera, he talked
with several of his classmates who have become extremely successful in various businesses. One of those
classmates suggested to Jean-Claude that adoption of a standard cost system eliminated most of her �irm’s
unacceptable scrap and spoilage, caused an examination of nonvalue-added activities, and substantially
reduced several inef�icient operations.
Jean-Claude did not know whether his restaurant chain would really bene�it from a standard cost system. He
wondered: If he makes the change, which costs should be put on standards? How does he set up standards?
When do variances mean something? Isn’t a standard cost system expensive to use? Isn’t it a pain in the
derriere? Wouldn’t a tight budget do the same thing?
These questions were more than Jean-Claude could consider. He decided to bounce the idea of standard
costs off his controller.
In measuring success in any undertaking, a comparison is usually made between actual performance and expected
performance. Any difference is a variance. A manager is then left with the responsibility to explain the what, why,
and how of the variance. In doing so, the manager must understand the in�luence of key variables on the actual
results, focus on areas that deserve more detailed investigation, and determine changes that must be made in future
planning and control. This chapter introduces the concept of pro�it analysis and then concentrates on variances
associated with a standard cost system for direct materials, direct labor, and factory overhead.
8.1Pro�itAnalysis
Pro�it is an overall measure of how well an organization is doing. A pro�it variance then is the difference between
the actual net income and the planned net income for the same period. The causes of such a variance are related to
...
Development of Model for Quality Costing in a Medium Scale Industry-A Case StudyIOSR Journals
Abstract: Quality c o s t s pl ay s vi tal rol e in improving productivity. These costs are typically
categorized into costs of prevention, appraisal, internal and external failure. Like other activities of
business, quality costs can be programmed, budgeted, measured and analyzed to attain the objective of
better quality at lower cost. Quality costs is the basis by which investments in quality programs may be
evaluated in terms of cost improvement , profit enhancement and other benefits for plants and companies
from these programs. The cost of quality is an increasingly important issue in the debates over quality.
There was a mistaken notion that achievement of better quality requires higher costs. It was the myth that
prevented many Indian companies to invest more on quality cost related programs. In this article the
authors made an attempt to identify the different types of quality costs in a medium scale industry because
the small and medium scale industries pay very little attention towards finding and developing a system for
knowing & optimizing the cost of achieving quality. A model is proposed to identify the different quality
costs in a medium scale industry and is further implemented. It has been found some quality costs are more critical and require greater attention.
Key words: Quality costs, Quality management, Pareto analysis, Model for optimization
Cost and Management Accounting and Comparative Analysis o Activity Based CostingAnamika Hore
This presentation titled , "Cost and Management Accounting and Comparative Analysis o Activity Based Costing." also Discuss about Traditional costing systems along with Activity Based Costing
This presentation covers meaning,definiton,characteristics & types of enrepreneur & meaning of entrepreneurship,its dimensions,classification of corporate entrepreneurship & factors affecting development of entrepreneurship
This presentation covers factors affecting elasticity of demand, degree of elasticity, different types of elasticity such as total outlay method, point method and percentage method.
Normal Labour/ Stages of Labour/ Mechanism of LabourWasim Ak
Normal labor is also termed spontaneous labor, defined as the natural physiological process through which the fetus, placenta, and membranes are expelled from the uterus through the birth canal at term (37 to 42 weeks
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
3. INTRODUCTION OF STANDARD COSTING
Standard costing is one of the most important techniques of
management accounting & control. In this era of competition
every manufacturer wants that whereas on the one hand the
quality of product should be as per standards specified, on the
other hand cost of production should be well within control.
3NEHA YADAV (ASST. PROF)
4. MEANING OF STANDARD COSTING
The term “Standard” refers to a specific measurement or “pre-
determined scale”. Standard cost is a pre-determined cost which is
determined for the production of goods on the basis of certain specified
standards under certain specific conditions
Standard costing is a process & technique of
accounting in which actual costs incurred are compared with pre-
determined cost. On the basis of comparison efficiency of operation is
determined & necessary corrective measures are taken if there are some
variances.
4NEHA YADAV (ASST. PROF)
5. Definition of STANDARD COSTING
“Standard costing is a method of ascertaining the cost whereby
statistics are prepared to show : (a) the standard costs ;(b) the actual
costs ; (c) the difference between these costs; which is termed as
variance”. --- H. J. Wheldon
5NEHA YADAV (ASST. PROF)
6. CHARACTERISTICS OF STANDARD
COSTING
• Determination of standards
•Computation of actual cost
•Comparison of standard & actual costs
•Computation of variances
•Ascertainment of reasons of variances
•Study of options
•Presentation of report to the management
6NEHA YADAV (ASST. PROF)
7. OBJECTIVES OF STANDARD COSTING
Increase in efficiency & productivity
Cost control
Determination of responsibility
Supplement to budgetary control
Information to the management
Progressiveness of management
7NEHA YADAV (ASST. PROF)
8. OBJECTIVES OF STANDARD COSTING
Increase in efficiency & productivity
Cost control
Determination of responsibility
Supplement to budgetary control
Information to the management
Progressiveness of management
8NEHA YADAV (ASST. PROF)
9. ADVANTAGES OF STANDARD COSTING
I) Advantages from the view of cost accounting
1. Elimination of the weakness of historical costing
2. Simple & economic
3. Cot control
4. Comparability
5. Basis of valuation of stock
9NEHA YADAV (ASST. PROF)
10. II) Motivational Advantages
1. Cost consciousness
2. Measurement of & increase in efficiency
3. Basis of incentive wage system
10NEHA YADAV (ASST. PROF)
11. III) Managerial Effectiveness Advantages
1. Facility in production planning
2. Management by exception
3. Effective delegation of authority
4. Determination of responsibility
5. Basis of price fixation
6. Helpful in budgetary planning
7. Facility of use of information technology
11NEHA YADAV (ASST. PROF)
12. LIMITATIONS OF STANDARD COSTING
Unsuitable for concerns dealing in non-standardized products
Difficulties in setting up standards
Not suitable for small firms
Difficulty in fixing responsibility
Changing business conditions
Need of budgetary control
Feeling of dissatisfaction among employees
12NEHA YADAV (ASST. PROF)
13. ESSENTIAL CONDITIONS FOR AN EFFECTIVE SYSTEM
OF STANDARD COSTING
Proper determination of standards
According to technical process
Simplicity & clarity
Promptness in variance analysis
Variance reports
Proper interest by management
Production of standardized goods
Standards of different elements of cost
13NEHA YADAV (ASST. PROF)
14. TYPES OF STANDARD
Basic standards-It is also known as ‘initial’, ‘static’ or ‘fixed’
standards . These standards are based on data of some base year & are
determined as abase for long period
Current standards-Current standards are established on the basis
of current conditions & are modified according to changing conditions.
These standards may be of the following three types:
i. Ideal Standard
ii. Expert standard
iii. Normal standard
14NEHA YADAV (ASST. PROF)