Premium Essay

Advanced Management Accounting

In: Business and Management

Submitted By Marscp2014
Words 1150
Pages 5

Mixed Costs
Total Mixed Cost VC Per Unit (Slope)

Purpose of Mixed Cost Analysis
To predict cost at an activity level with no historical record:

Total mixed cost line can be expressed as:


Total Utility Cost

Fixed Cost (Intercept)

Level of Activity

If your fixed monthly utility charge is $40, your variable cost is $0.03 per kilowatt hour, can you predict the utility of next month when you plan to use 2,000 kilowatt hours?

Y = a + bX
Variable Cost per KW Fixed Monthly Utility Charge

Y = $40 + ($0.03 × 2,000) Y = $100

X Activity (Kilowatt Hours)

A mixed cost has both fixed and variable components. Total cost CHANGES with activity level but NOT IN PROPORTION

The High-Low Method
1. Find the data with highest & lowest activity level
2. Compare high vs low point data to get the slope, b, unit VC 3. Use either high or low point data to get a, total fixed cost
Assume the following hours of maintenance work and the total maintenance costs for six months.

Y = a + bX

• From Algebra, if we know any two points on a line, we can determine its slope.

2. Break-Even Analysis (J. Smith ~ Taxi Driver)
Break Even Point is the point at which costs and sales are equal CM = fixed costs.
Fixed costs (FC) Insurance Car payment Interest Dispatcher fees Variable costs (VC) Gas Maintenance & repairs

neither gain nor loss


(principal or amortization)

Value of Costs or Revenue

Step 2, the slope or b is determined by difference in cost (y) difference in hours (x).
(MC2 – MC1)/(units 2 – units 1) = [(FC+VC 2)-(FC+VC 1)]/(units 2 –units 1)
= (unit VC * units 2 – unit VC * units 1)/(units 2 – units 1)

profit = CM – Fixed costs Fixed costs = CM at break-even point Fixed costs = unit CM * units sold at break-even Fixed costs = unit CM * break-even units BEP units = FC/unit CM BEP sales = BEP units * unit price...

Similar Documents

Premium Essay

Advanced Management Accounting

...SCHOOL OF ACCOUNTANCY COLLEGE OF BUSINESS BKAM3033 ADVANCED MANAGEMENT ACCOUNTING SECOND SEMESTER 2014/2015 (A142) GROUP E GROUP PROJECT TITLE: HUMAN RESOURCE ACTIVITIES IN UNIUTAMA PROPERTY SDN BHD (UPSB) PREPARED FOR: DR HASNAN AHMED PREPARED BY: NAME | MATRIC NO. | MOHAMAD AMIRUL BIN AHMAD ROSLAN | 222191 | SUBITHA VELAYUTHAM | 225322 | LEONG CHAI HUA | 226152 | YEOH CHOOI CHYI | 226156 | POOGANESWARY KESAVAN | 226298 | SUBMISSION DATE: 5TH MAY 2015 Table of Contents 1.0 Introduction 1 2.0 Literature Review 2 2.1 Gaining Competitive Advantage Through Human Resources Management Practice 2 2.2 Human Resources Development: Performance Is The Key 4 2.3 An Intellectual Capital Perspective of Human Resource Strategies and Practices 5 2.4 Influence of Supervisory Feedback on Goal Orientation of Employees 8 2.5 Human Resources Now More Than Personnel 10 2.6 New Developments in Employee Training 12 2.7 Managing Human Capital in a Privately Owned Public Hotel Chain 14 2.8 Strategic Human Resources Management: Where Do We Go From Here? 16 2.9 Motivation of the Human Resources for a Sustainable Organizational Development 18 2.10 The Effect of Human Resource Management Practice on Corporate Perfomance: A study of Graphic Communications Group Limited 19 3.0 Objective of the Study 20 4.0 Methodology 21 5.0 Findings 22 5.1 Recruitment 22 5.2 Job Training 24 5.3 Privileges and Rewards 26 5.4......

Words: 9295 - Pages: 38

Premium Essay

Acf 2011 Sem 2

...School The University of Adelaide University of South Australia Open Universities (conferred by Uni of SA) TASMANIA University of Tasmania VICTORIA Australian Catholic University Cambridge International College Carrick Higher Education Deakin University Holmes Institute Holmesglen Institute of TAFE La Trobe University Melbourne Institute of Technology Monash University Northern Melbourne Institute of TAFE RMIT University Swinburne University of Technology The University of Ballarat The University of Melbourne Victoria University WESTERN AUSTRALIA Curtin University of Technology Edith Cowan University Murdoch University The University of Notre Dame Australia University of Western Australia SINGAPORE Nanyang Technological University Singapore Management University Page 3 3 3 3 3 4 4 4 4 4 5 5 5 6 6 6 7...

Words: 16200 - Pages: 65

Premium Essay

Admission lifelong success. It’s all about opportunity. Accounting professionals can work in any sector, anywhere in the world. And when you choose CGA, you’ll gain the leadership, problem-solving and technical skills that are sought after by organizations in the private, public and not-for-profit sectors. The CGA Program of Professional Studies gives you the tools to succeed in business, no matter where your career takes you. You’ll enter the workforce with the applied knowledge and demonstrated expertise that employers want, including specialized technical knowledge, sectorspecific competencies, problem-solving skills and the ethical integrity to lead. CGA’s competency-based curriculum is simply your best way to prepare for a rewarding career in financial management. Flexible study options and the freedom to choose the career you want CGA is all about choice. You choose the professional-studies path and real-world experience that best match your career goals and interests. We give you the skills and freedom to work in any type of organization, in any industry, at any level of management. With a CGA designation, your opportunities—both professional and personal, at home and around the world—are limitless. Take your place as a highly respected member of the business world. Karmen Rempel, CGA Manager Grant Thornton LLP Vancouver, British Columbia Why CGA? There are many reasons why CGA is the fastest-growing accounting designation in Canada. With CGA, you can: 1.......

Words: 4906 - Pages: 20

Premium Essay

Evolution of Management Accounting

...Evolution of Management Accounting: Contemporary Significance and Retrospection Abstract: The management accounting aim in future forecasting, planning and making decisions for the firm. It is also good at cost managing (cost accounting), improving production and management controlling, for example, the Balance Scorecard and Management Control System. What is evolution? The synonym of evolution is development which means the experiences of its past to present, also means history. Thus, it will introduce the management accounting's history of U.S and China so that we could clarify why China lag behind. Moreover, it would move forward to describe the circumstance today to emphasize the new missions of management accounting. Of course, it would make suggestions for China based on the present and past. Finally, expect the future outlook of management accounting Generally speaking, besides telling readers the main factors of influencing management accounting in China, it aim to encourage and remind readers as well as schoolmates to study the management accounting and notice the significance and potentials of management accounting. Key words: Management Accounting, Cost Accounting, Evolution of Management Accounting, Balance Scorecard, Management Control System. Contents INTRODUCTION 6 1. LITERATURE REVIEW 8 1.1 THE INFLUENCING FACTORS OF MANAGEMENT ACCOUNTING 9 1.1.1 Business size, Organizational Structure and Technology 9 1.1.2......

Words: 9769 - Pages: 40

Free Essay

Dr Manger

...Organizational Theory, Design, and Change Jones 6th Edition Test Bank Click here to download the solutions manual / test bank INSTANTLY!!! esign-and-change_18.html ----------------------------------------------------------------------Organizational Organizational Organizational Organizational Theory, Theory, Theory, Theory, Design, Design, Design, Design, and and and and Change Change Change Change Jones Jones Jones Jones 6th 6th 6th 6th Edition Edition Edition Edition Test Test Test Test Bank Bank Bank Bank -------------------------------------------------------------------------***THIS IS NOT THE ACTUAL BOOK. YOU ARE BUYING the Test Bank in e-version of the following book*** Name: Organizational Theory, Design, and Change Author: Jones Edition: 6th ISBN-10: 0136087310 Type: Test Bank - The test bank is what most professors use an a reference when making exams for their students, which means there’s a very high chance that you will see a very similar, if not exact the exact, question in the test! - The file is either in .doc, .pdf, excel, or zipped in the package and can easily be read on PCs and Macs. - Delivery is INSTANT. You can download the files IMMEDIATELY once payment is done. If you have any questions, please feel free to contact us. Our response is the fastest. All questions will always be answered in 6 hours. This is the quality of service we are providing and we hope to be your...

Words: 29834 - Pages: 120

Premium Essay

Auditing 2.3

...manual with test bank Abnormal psychology - thomas f. Oltmanns (5th ed) solutions manual and test bank Abnormal psychology 14e butcher mineka hooley solutions manual and tet bank About Philosophy, 11/E Robert Paul Wolff,  instructor manual with test bank Absolute C ++ 4e Walter Savitch Solutions manaual and test bank Absolute C++ 5/E Walter Savitch solutions manual and test bank Accounting 24e Carl Warren James M. Reeve Solutions manaual and test bank Accounting 9e Horngren Harrison Oliver Solutions manaual and test bank Accounting concepts and applications - steve albrecht (11th ed) solutions manual and test bank Accounting for governmental and nonprofit entities 16e by wilson & reck solutions manual and test bank Accounting Information System 9e Bonder Solutions manaual and test bank Accounting information systems - george h. Bodnar (10th ed) solutions manual and test bank Accounting information systems 12e marshall b. Romney paul j. Steinbart solutions manual and test bank Accounting Information Systems 2e Robert Hurt Solutions manaual and test bank Accounting information systems 9e...

Words: 4815 - Pages: 20

Premium Essay

Management Accounting

...------------------------------------------------- Management accounting From Wikipedia, the free encyclopedia | This article contains wording that promotes the subject in a subjective manner without imparting real information.Please remove or replace such wording and instead of making proclamations about a subject's importance, use facts and attribution to demonstrate that importance. (February 2012) | Accounting | | * Historical cost accounting * Constant purchasing power accounting * Management accounting * Tax accounting | Major types of accounting[show] | Auditing[show] | People and organizations[show] | Development[show] |  Business portal | * v * t * e | In Management accounting or managerial accounting, managers use the provisions of accounting information in order to better inform themselves before they decide matters within their organizations, which aids their management and performance of control functions. Contents   [hide]  * 1 Definition * 2 Scope, practice, and application * 3 Differences between financial accountancy and management accounting * 4 Traditional vs. innovative practices * 5 Role within a corporation * 6 Specific methodologies * 6.1 Activity-based costing (ABC) * 6.2 Grenzplankostenrechnung (GPK) * 6.3 Lean accounting (accounting for lean enterprise) * 6.4 Resource consumption accounting (RCA) * 6.5 Throughput accounting * 6.6 Transfer......

Words: 3095 - Pages: 13

Premium Essay


...Bachelor of Business (Accounting) Course Structure (commencing 2013) Course Requirements     Students must complete a total of 24 units (144 credit points) to complete the Bachelor of Business (Accounting). A minimum of 16 units (72 credit points) must be taken at Monash University, Caulfield Campus. Students can complete a maximum of 10 units (60 credit points) at first-year-level. Students must complete a minimum of 6 units (36 credit points) at third-year-level, of which 4 must be from the Bachelor of Business degree family, Caulfield Campus.  In addition to specific unit prerequisites, second-year level units require the successful completion of three first-year level units and thirdyear level units require the successful completion of two second-year level units. For students commencing with credit:  A minimum of 8 units (48 credit points) must be taken at Monash University, Caulfield campus.  A minimum of 12 units (72 credit points) must be taken at Monash University. Common Core Units Students MUST complete all 6 compulsory common core units:       AFF1000 BTF1010 ECF1100 ETX1100 MGF1010 MKF1120 Principles of accounting and finance Commercial law Microeconomics Business statistics Introduction to management Marketing theory and practice Accounting Major Units Students MUST complete all 6 compulsory major units:  AFF1000 Principles of accounting and finance (also completed in the common core)  AFF1121 Introduction to financial accounting......

Words: 869 - Pages: 4

Premium Essay

The Implementation of Activity Based Costing (Abc) in Chinese Refining Manufacturers

...Finished goods costs term 13 3. Research methodology 13 3.1 case study 13 3.2 The survey method 13 3.3 Literature 14 4. Research Results 14 4.1 problems of traditional costing method in oil refining enterprise 14 4.2suggestions for Chinese enterprises’ application ABC 15 Bibliography 15 1. Introduction 1.1 Research background With the rapid development of the national economy, enterprises’ competition is increasingly fierce; many companies are using advanced science and technology to achieve competitive advantage in the market. Market competition and technological progress are the two fundamental economic factors which generate activity-based costing. Since The beginning of 1980s of the 20th century, the activity based cost method is paid a wide range of attention; the developed countries gradually adopt it in a number of advanced enterprises, and it continuously develops in the practice. Traditional Costing emphasizes on the accounting and control of the direct materials and direct labor and other direct costs, while for indirect costs it uses the single number standard as the basis for the allocation. In the case that products variety is single, the proportion of indirect costs is smaller, and it still can provide...

Words: 4478 - Pages: 18

Premium Essay

Activity Based Costing

...that the opportunity to revert to old ways is limited. Activity based costing is aims to cost the products independent of output volume and to apply overheads on the basis of causes and effect. Besides that, it is also aim to trace all the costs to products. The underlying assumption of ABC is that a product causes activities, activities cause costs and therefore activity is related to product costs. In other words, since activities consume assigned resources and products consume activities, the costs of products are the cost of resources. Its main focus is on the relationship between activity, cost driver, cost, cost pool and cost object. Traditional cost accounting is inadequate so that become activity based costing more relevant. Activity based costing gained support because of the limitations of traditional cost accounting. It is focuses on departments, cost centres or divisions and not an activity. For example, the production overhead is increase while the labour hours decrease due to automation. This will leads to high absorption rates based on direct labour hours and direct labour costs. The traditional costing treats some departments as non-productive cost centres such as testing, inspection and quality control departments. Activity based costing is still relevant for...

Words: 1101 - Pages: 5

Premium Essay


...| Carmelia Bell | Portfolio | | Bachelors of Science in AccountingDeVry UniversityJune 2013 | | | | | Table of Contents * Personal Mission Statement * Elevator Speech * Education * DeVry Plan of Study * DeVry Course Description and Academic History * Resume * Reference List * Career Path Section Mission Statement My mission is to continue to drive for excellence throughout my life. I will ensure that I graduate from school with my Bachelors of Science in Accounting degree from DeVry University. My mission is to also enroll in Keller’s Graduate school to get my master in Business and Management. My goal is to work for a successful company in a management position to demonstrate my skills and help the company to drive for outstanding results. I am committed to becoming a successful manager in a retail store or corporate level. I am willing to go above and beyond to reach that goal. I am a driven, compassionate, and hardworking individual. My goal is to one day get marry and have a family. I will be loving and proactive in building and maintaining my relationships with my employees, family and friends, so that I may be considered a successful wife, mother, daughter, sister, aunt, friend, co-worker, and manager. Elevated Speech Hi my name is Carmelia Bell. I am a senior at DeVry. I’m graduating June 30 of this year. I have 4 years of an assistant manager experience. I’m currently working as a team lead......

Words: 3474 - Pages: 14

Premium Essay

Imc Communication Plan

...method of accounting that used various techniques to assign costs to particular cost objectives, e.g. the cost to perform an activity, produce a product or render a service. W.B. Lawrence stressed the importance of accountants becoming familiar with cost accounting in his 1930 text because even then, “the modern factory occupies more space and employs many more workers than did the factory of a generation ago”. In 1940, John Blocker recommended in his text additional uses for cost accounting in other industries, such as construction, mining, utilities and nonprofit organizations. He believed that all of these businesses needed to consider that the costing in different departments within a company could be controlled through cost accounting. Even in the 1960’s accountants and system designers developed cost accounting to do more than measure performance. Cost accounting was an integral part of planning and control in businesses. After that, the concept of activity-based costing (ABC) was introduced in the US, initially in the manufacturing sector during 1970s and 1980s. Robert Cooper and Robert Kaplan brought the ABC concept to light and published the body of knowledge in the Harvard Business Review in 1988. Cooper and Kaplan defined ABC method as an approach to solve the problems of traditional cost management systems; that is, the conventional cost accounting systems are often unable to identify correctly the true costs of processes. Consequently, management and......

Words: 1960 - Pages: 8

Premium Essay

Summary Evolution of Management Accounting

...raised of competitive environment that must make us to check thoroughly our traditional cost accounting and management control system. The most important cost accounting text books had been developed by 1925 is explained most the entire practices employed by firm today. Looking down on for the past 60 years, there’s a huge change in management nature and competition dimensions with a few innovation in the design, implementation of cost accounting and management control system. Then, it is not only applicable but important that we understand current practices that reflect on the latest demands for planning and control information, and evolve a research strategy to meet these demands. There are five section of the evolution of management accounting, namely ‘A Summary of Historical Development in Cost Accounting’, ‘Historical Development of Managerial Control’, ‘Development since 1925 in Cost Accounting and Managing Control’, ‘New Challenges for Cost and ‘Managerial Accounting Research’ and ‘New Directions for Management Control Research’. 1. A Summary of Historical Development in Cost Accounting Thomas Johnson has been traced the development of cost accounting and management control practices in US corporations. The history of the development of US corporations in Chandler had been built by this research. During the period 1850-1925 it is very important to know the cost and management control information to support the gain business of transportation, production and......

Words: 958 - Pages: 4

Free Essay

Advertised Skills and Characteristics of Management Accountants

...Characteristics of Management Accountants Aileen Davey Adrian France* *Waikato Institute of Technology (Wintec) Tristram Street Private Bag 3036 Hamilton 2020 New Zealand Telephone: (07) 8348800 ext 8519 Fax: (07) 8348802 Email: Abstract In New Zealand there have been a number of articles about the changing profile of accountants in today’s environment. Recent debate is focusing on the goal congruence of educators and practitioners. Professional accounting bodies are also identifying the changing needs of the accounting professionals’ skill sets as a key area of future focus irrespective of what job title the accounting professionals operates under. This paper seeks to identify the key skills and characteristics of management accountants which are being looked for by employers in today’s market. Situations vacant for management accountants were surveyed. The results indicated that communication skills were advertised the most frequently, marginally ahead of technical skills. Of the Characteristics leadership was most frequently advertised. The survey in this paper confirmed the practitioners actions in situations vacant advertising are congruent with their requirements profiled as essential skills in potential employees, today’s students. Keywords: Skills, characteristics, management accountant, situations vacant, advertising. Advertised Skills and Characteristics of Management......

Words: 4234 - Pages: 17

Premium Essay

Abc System

...International Journal of Trade, Economics and Finance, Vol. 1, No. 2, August, 2010 2010-023X Factors Influencing Activity-Based Costing Success: A Research Framework Zhang Yi Fei and Che Ruhana Isa becoming more and more popular [3-7] ABC aims to provide accurate costing information to managers to allocate activity costs to products and services by applying cost drivers [8]. Academics who advocate ABC, such as, Cooper and Kaplan [9], and Swenson [10] argue that it provides more accurate cost data needed to make appropriate strategic decisions about product mix, sourcing, pricing, process improvement, and evaluation of business process performance. These claims have led many firms to adopt ABC systems [8]. The benefits of ABC and its positive impact on firm’s performance motivated a numerous studies which examined various aspects of ABC. Among such studies are McGowan [11] who assessed the integrity of ABC success, Innes and Mitchell [4, 12] and Yanren [13] who conducted research on factors affecting ABC adoption, and Shield [3], Shields and McEwen [14], Gosselin [15] and Baired et al.[16, 17]who concentrated on factors influencing ABC success especially at the implementation stage. However, there is mounting evidence that suggests most of firms are experiencing problems in implementing ABC and, in some extreme cases, ABC implementation is not successful [3], which later resulted in abandoning the ABC systems altogether [15]. Questions arise as to why ABC implementation......

Words: 6138 - Pages: 25