... non-financial information
CHAPTER 1 INTRODUCTION TO MANAGEMENT ACCOUNTING
24
‘
Management decisions requiring management accounting
information
Figure 1.9
Management accounting information is required ... role of management accounting. A useful start-
ing point for our discussion is to acknowledge the general role of accounting, which is
to help people make informed b...
... thought of additional points.
Activity 2.7 continued
JB Limited is a small specialist manufacturer of electronic components. Makers of aircraft,
for both civil and military purposes, use much of its ... Cost Accounting: A Managerial
Emphasis, 13th edn, Prentice Hall International, 20 08, chapter 11.
Further reading
CHAPTER 2 RELEVANT COSTS FOR DECISION MAKING
48
Cost p. 38...
... 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 ... 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...
... must pick up, therefore, is the loss of profit arising from the
loss of sales of 100 units of the product.
CHAPTER 7 ACCOUNTING FOR CONTROL
222
‘
What will be the loss of profit arising from the ... 179
Periodic budget p. 180
Continual budget p. 180
Rolling budget p. 180
Master budget p. 181
Management by exception p. 184
Budget committee p. 186
Budget officer p. 186
Incr...
... cash flows rather than profit flows used in the IRR, NPV and PP methods of investment
appraisal?
8. 4
8. 3
8. 2
8. 1
Exercises 8. 3 to 8. 8 are more advanced than 8. 1 and 8. 2. Those with a coloured ... cost of capital of 12 per cent.
8. 2
CHAPTER 8 MAKING CAPITAL INVESTMENT DECISIONS
M 08_ ATRI3622_06_SE_C 08. QXD 5/29/09 3:31 PM Page 312
accounting can play a useful rol...
...
capital employed 68 54 .8 23 19 .8 5 5.0
l A target economic value
added (EVA
®
) figure 11 8. 9 8 6.9 10 10.0
l A target cash flow figure 10 8. 1 45 38. 8 27 27.0
l Other 8 6.4 8 6.9 12 12.0
124 ... Achievement of a target
rate of return on capital
employed (ROI) 9 7.3 21 18. 1 41 41.0
l A target profit after
charging interest on
capital employed (RI) 18 14.5 11 9.5 5 5...
... 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...