... non-financial information
CHAPTER 1 INTRODUCTION TO MANAGEMENT ACCOUNTING
24
‘
Management decisions requiring management accounting
information
Figure 1.9
Management accounting information is required ... and the value of providing
additional management accounting information
Figure 1 .6
The benefits of management accounting information eventually decline. The cost...
... (BEP) p. 61
Contribution per unit p. 66
Contribution margin ratio p. 67
Margin of safety p. 67
Operating gearing (operational
gearing) p. 70
Profit–volume (PV) chart p. 72
Economies of scale ... senior management is
reviewing the performance of one hotel and making plans for next year.
The managers have in front of them the results for this year (based on some actual res...
... standard profit mark-up of 25 per cent of full
cost. Management is concerned by the lack of profit.
Full cost for one unit of a product is calculated by charging overheads to each type of
product ... commence production of a new model of machine
for which facilities exist to produce a maximum of 10 machines each week. To assist
management in a decision on the price t...
... Institute of Management Accountants and The Faculty of Finance and Management of the Institute of
Chartered Accountants in England and Wales, Better Budgeting, March 2004.
M 06_ ATRI 362 2_ 06_ SE_C 06. QXD ... budgets in monthly columnar form, both in terms of money and units
(where relevant), for the six months of January to June inclusive:
6. 8
EXERCISES
215
M 06_ ATRI 3...
... actual profits of the business for the month, going into as much detail with your
analysis as the information given will allow.
7.8
CHAPTER 7 ACCOUNTING FOR CONTROL
2 56
M07_ATRI 362 2_ 06_ SE_C07.QXD ... years’ time Operating profit before depreciation 60 20 (−40 + 60 )
4 years’ time Operating profit before depreciation 60 80 (20 + 60 )
5 years’ time Operating profit before depr...
... is very helpful for those involved with pricing decisions to have some feel for
the elasticity of demand of the commodity that will be the subject of a decision. The
sensitivity of the demand ... commence production of a new model of machine
for which facilities exist to produce a maximum of 10 machines each week. To assist
management in a decision on the price to ch...