01119113
review for MAS
integrated
managerial accounting
-
-
-
-
'
Financial
management
financial
Management
strategic
cost
management
Economics
- 11
2nd week
Intro to MAS
-
3rd week
-
4th week
-
5th week
6th
Cost volume profit analysis Variable Absorption costing
,
Operating Financing A total leverage & capital Budgeting
,
Ts
-
analysis
financial Planning & Forecasting
standard costing & Variable Analysis
.
Master Budget
-
8th week
,
cost of capital
-
week
7th week
Cost concepts & Behavior
.
Activity
.
,
Flexible & static
based costing &
Budget
Management
,
Responsibility
Accounting & transfer
9th Week
-
Balanced scorecard Relevant costing & Incremental
,
Analysis
10th week
-
Working capital Mgt
pricing
11th Week
-
Capital
structure
.
.
Risk & Return
w/ capital asset
model
& long
-
term
financing Economics
,
chapter
1
:
fundamentals
of
Managerial Accounting
Ethical standards
-
Man Accountants have
ethical obligation to their company
.
managerial Accounting
-
provides
economic
managers
-
and the
and financial information
& internal
for
-
public
Institute of Management Accountant
users
>
decision making
↳
from us
,
Australia
they developed
the code of ethical standards
,
"
standards of Ethical Conduct for
Distinguishing
Responsibilities
primary
users
Financial
Managerial
Accounting
Accounting
External
•
sfh
:
Internal
•
creditors
,
i.
:
a.
MNYB
,
taking
CPAIE
to
•
•
Classified FS
-
must not
,
supervisor
f. ×
Internal reports
•
Quarterly & Annually
•
Frequently
as
3.
you
.
disclose any into
received
•
purpose
•
•
General Purpose
subpoena
a
all users
Particular
content
Entity
•
Highly aggregated
as a
whole
subunits of
•
•
very
lion dense d)
•
limited
entry acctng
&
•
-
May
•
system
-
is
the reporting
standard
neÑÉ?4Fs
entity
•
detailed
-
extend beyond
Verification process
Annual
audit
independent
by CPI
Management
of
4
look ahead
-
value
↳
is
Establish
•
is
to the decision
Io independent
audits
measured
-
For decision
•
making
objectives
by
business
:
trading price of company 's stocks
↳ Potential
Reporting standard
relevance
to
PLANNING
system
•
you allowed
Free from bias ; objective
selling
price of the
company
DIRECTING & MOTIVATING
-
coordinating
a smooth
•
Are
user
double-entry acctng
cost data
GAAP
.
↳ adds value to the
double
to
from court
Objectivity
3 Broad functions
•
public
Honesty
-
special Purpose
•
to
Integrity
needed
4.
become competent
confidentiality
.
,
:
disclose the
Frequency
Accountants
competence
-
officers dept heads
,
regulatory agencies
Types &
Management
Managerial Accounting
features of
-
-
activities
diverse
and human resources to
running operation
implantation of planned objectives
organization charts
↳
interrelationship
↳
delegation
of
authority & responsibility
produce
•
CONTROLLING
-
-
•
firm 's activities
keeping the
Are
planned goals
What changes
-
-
-
when there
are necessary
objectives
on track
met ?
being
are
deviations from
are
targeted
and
DM
not
-
what costs
to
decreased
,
decrease ?
will costs
have
on
•
total costs ?
↳
organization ?
MANUFAUNRING costs
-
RAW materials →
manufacturing
*
manufacturing
do
-
-
not
physically
-
they
is too small
accounted
are
the
in
terms
of
finished product
-
cost
•
work of
-
Factory employee that
associated with the
*
can
manufacturing
be
physically
-
physical
association
M
FG
,
( cocos)
Direct labor
t
association
IDI
toning
t
Mo
)
manufacturing overhead
raw materials to
Finished goods
and
conveniently
specific time period
deducted from
revenues
NON MANUFACTURING
-
in
the
period which they
are
costs
& SELLING EXPENSES
↳ ADMINISTRATIVE
process
wages of maintenance people timekeepers
no
sold
)
DL
t
is
All costs
-
,
-
( DM
Finished product
goods inventory
until the finished
materials
direct
Indirect labor
-
producing the
PERIOD WITS
-
Direct labor
-
PERIOD COST
w/ the finished
-
•
Factory Fuuilities
MO
Direct labor t
↳
MANUFACTURING OVERHEAD
as
,
CONVERSION costs
part of the Finished product
become
Direct
process
easily associated w/
Dl
EXPENSE D
↳
traced because their physical association
cannot be
product
cannot be
,
PRIME costs
process
7
some RAW materials
DM
NOT
-
Indirect materials
-
AND
necessary and integral part of
>
basic materials 9 parts to be used in the
-
on
,
inventor i able costs
-
Direct Materials
-
Factory buildings & machinery
PRODUCT WIT
-
•
Dl
PRODUCT COST
the product ?
making
How can wits best be controlled in the
OF
Proust
cost
involved in
is
on
,
What impact will automation
THREE CLASSES
manufacturing
Insurance taxes and maintenance
CONCEPTS
product volume
It
the
Indirect labor
cost
are
not
Indirect materials
-
?
information related
↳
w/
associated
indirectly
Depreciation
MANAGERIAL
overhead
Manufacturing
supervisors
product costs
-
manufacturing
-
Bs
.
→
Period wits
win
-
Is
-
non
-
manufacturing
costs
Is
MANUFACTURING OVERHEAD
Direct Materials
Direct labor
Manufacturing
overhead
Prime
Costs
conversion
costs
Selling Expenses
Administrative Expenses
incurred
MERCHANDISING & MANUFACTURING INCOME STATEMENT
-
They differ from the
section
COGS
MERCHANDISING COMPANY
Beginning
Merchandise
Inventory
Cost of Goods purchased
lending
merchandise inventory )
COST OF GOODS
SOLD
MANUFACTURING COMPANY
Direct Materials
Direct labor
manufacturing
wits
total
manufacturing
WIP
Inventory beg
,
Wsb
.
WIP
Total cost of
CWIP Inventory end )
,
Inventory beg
Cost of
)
(
)
manufactured
Colt Of Goods
1=6
(
,
.
goods available for sale
IFA Inventory
cost OF
,
,
end
GOODS
)
SOLD
MERCHANDISING & MANUFACTURING
1-
-
inventory
BALANCE SHEET
t
t
account
:
inventory accounts
3
Merchandise Inventory
-
-
-
:
Finished Goods
Inventory
work in proves ,
inventory
Raw materials
inventory
]
listed according
to
liquidity
cost Behavior
1:
Chapter
Analysis
MIXED
ANALYSIS
cost BEHAVIOR
•
-
specific
how
-
-
-
-
-
room 01m
number of dance
correlation
-
classes
to be
•
activity
-
studio )
-
changes
the level of volume of
in
cost that
mixed costs
Firms
basis at the end of
INDEX
-
that cause
changes
per
unit
at
in
every level
of
activity
a.
-
Lame
total regardless
in
Fixed costs per unit vary
T volume
t unit
inversely
with
of
changes
in the
High
in
÷
mixed
incurred
activity
activity level
total cost
or the
activity
levy,
by subtracting
low
activity
.
Formula :
per unit
the total variable cost
activity
level from the total
level
Total variable lost
at
_
that
ft
Variable cost
=
Determine the fixed lost
high
low
minus
Activity
cost at that
remains the
uses the total costs
variable cost per unit from the
the
changes
the
FIXED costs
-
that
high and low levels of
at either the
•
the
HIGH -10W METHOD
WSB
-
,
activity levels
↳ a mathematical
method
in the
level
same
period using the
a time
-
at the
proportionately with changes
-
costs on an
HIGH LOW METHOD
costs
← FIXED
fixed
ebehariot
total costs
remains the
in the
fixed and variable
company's past experience
cost at various
Identifies the activity
and
into their
ascertain variable and
usually
1. Determine
directly
changes
Analysis
Cvp
MIST be classified
Aggregate
activity
costs
in total
with
proportionately
level
Ml Nullification for
-
taught ( dance
VARIABLE
vary
Fixed cost element
elements
behavior of
-
not
a
terms of
,
ACTIVITY
=
lost )
element 4
cost
in total but
activity
in the costs
ACTIVITY LEVEL
VARIABLE
the company's business
variable
-
both variable
change
useful in cost behavior analysis there should be
↳
•
company
a
-
contain
1 hotel )
between
changes
and
in
-
of
( trucking company)
panty
activity
key activities
in
in terms
sales
1 retail company )
miles driven
For an
expressed
may be
sales dollars
-
the
changes
velotty w/in
in the
changes
measuring
is
Activity levels
-
respond
costs
starting point
/
to
1 semi
Mixed costs
•
costs
high
or
( activity
activity level
low
=
fixed cost
level )
wit
HIGH LOW METHOD
-
RELEVANT RANGE
•
•
•
curvilinear
( ve )
Nonlinear
IFC )
company
usualI operates
-
-
produces reasonable
DOESN'T produce
elements in
@ 40%-801
.
capacity
ignored
estimate
PRECISE
a
in the
for
analysis
measurement of the fixed and variable
mixed cost
computation
because other activities
are
Example
REGRESSION ANALYSIS
:
Miles Driven
Month
Jan
total cost
20000
30000
40000
68000
March
35 ooo
49000
April
50000
Feb
.
'
VARIABLE cost PER UNIT
①
lowest
-
-
→
cost
763000
-
(30
33--000
②
Highest Activity level
level
33000 ÷ 30000
=
miles
50000
20
300¥
miles
Activity
cost
(X )
(y )
independent variable
one
:
✗
y
✗
total
cost
* 600000000
tf 400000 000
40000
48000
1920000000
I 600000 000
35000
49000
1775000000
1225000 000
50000
63000
3150000000
190000
7
#
2500000
level
Low
sexy
1.10)
×
×
# 30000
✗
Are
y 190000/4
=
:
9×2
Ex
'
-
b.
↳ Averaged
-
41362501147500 )
-
b
Maintenance costs are
# 8000 per month plus
-
* 468750000
# 1.10 per mile
COST :
TOTAL
For
example
@ 45000
TC
:
Miles
=
at bx
Tfc :(y) Variable
-
.
=>
estimated maintenance
costs
=
TFC
# 49500
↳ (45000×1.10)
variable
+
TFC
# 8000
cost per
unit
✗
=
F- 9075
fixed
i.
total cost
=
=
1.06147500 )
(x)
I>
Averaged
47500 -11.067136250 )
:
2
F- 497500000
=
variable cost per unit
•
4136250 )
✗
* 8000
# 8000
# 47500
5725000000
1200£
fixed cost
=
# 36250
7385000000
=
1×2 )
n
=
Averaged
b=4xy-nl1)Ly)-
tÑ
1-10)
145000/4
Ave
→
variable cost
(20000
•
000
5725000
385000000
Ey
# 63000
(-50000
•
2
:
High
total
dependent
# 30000
145000
Activity
:
a
20000
Ex
less
value of
FUTURE DATA
UNIT
PER
COST
# 1.10
=
FIXED cost
between
held constant
is
used in FORECASTING
VARIABLE
*
Activity
changes when
variable
:
Activity
③
Helps people understand how the
Highest
While another
lost
Lowest
technique for estimating the relationship
Variables
63000
Highest Activity
lowest
→
REGRESSION ANALYSIS
t 9075
Averaged
=
#6
000
Example
REGRESSION ANALYSIS
:
Miles Driven
Month
Jan
total cost
20000
30000
40000
68000
March
35 ooo
49000
April
50000
Feb
.
'
VARIABLE cost PER UNIT
①
lowest
-
-
→
cost
763000
-
(30
33--000
①
Highest Activity level
level
33000 ÷ 30000
=
miles
50000
20
300¥
miles
Activity
cost
(X )
(y )
independent variable
one
:
✗
y
✗
total
cost
* 600000000
tf 400000 000
40000
48000
1920000000
I 600000 000
35000
49000
1775000 000
1225000 000
50000
63000
3150000000
190000
7
#
2500000
385000000
Low
variable cost
×
# 30000
1.10)
×
(20000
9×2
Ex
tÑ
1-10)
✗
Are
y 190000/4
b=4xy-nlÉy
"
-
145000/4
Ave
=
:
""
b.
↳ Averaged
# 47500
7385000
=
41362501147500 )
-
5725000
b.
* 8000
# 8000
=
-
4136250 )
•
Maintenance costs are
# 8000 per month plus
-949750000£
=
# 468750000
# 1.10 per mile
COST :
TOTAL
For
example
@ 45000
TC
:
Miles
=
at bx
Tfc :(y) Variable
-
.
=>
estimated maintenance
costs
=
TFC
# 49500
↳ (45000×1.10)
variable
+
TFC
# 8000
cost per
unit
✗
=
F- 9075
fixed
i.
total cost
=
=
1.06147500 )
(x)
I>
Averaged
47500 -11.067136250 )
:
2
✗
1200£
fixed cost
# 36250
"d
1×2 )
n
=
variable cost per unit
•
5725000
sexy
Ey
level
# 63000
(-50000
•
2
:
High
total
dependent
# 30000
145000
Activity
:
a
20000
Ex
less
value of
FUTURE DATA
UNIT
PER
COST
# 1.10
=
FIXED cost
between
held constant
is
used in FORECASTING
VARIABLE
*
Activity
changes when
variable
:
Activity
③
Helps people understand how the
Highest
While another
lost
Lowest
technique for estimating the relationship
Variables
63000
Highest Activity
lowest
→
REGRESSION ANALYSIS
t 9075
Averaged
=
#1
000
000