tailieunhanh - Ebook Management accounting best practices: Part 2

(BQ) Part 2 book "Management accounting best practices" has contents: Financial analysis decisions, payroll decisions, inventory decisions, cost allocation decisions, performance responsibility accounting decisions, product design decisions, pricing decisions, pricing decisions. | Chapter 5 Financial Analysis Decisions The accountant is constantly asked to conduct a variety of financial analyses regarding key management decisions. These analyses usually require a knowledge of analysis techniques well beyond the typical transaction processing and accounting presentation skills learned in college. Instead, the accountant must understand breakeven analysis, product mix analysis, how to create a what-if analysis with an electronic spreadsheet, how to create a cost variance table, how to allocate funds, and how throughput analysis can assist with a number of major decisions. This chapter provides answers to all of these issues and more. The following table itemizes the section number in which the answers to each question can be found: Section 5-1 5-2 5-3 5-4 5-5 5-6 5-7 5-8 5-9 5-10 5-11 5-12 5-13 5-14 5-15 5-16 Decision How do I calculate the breakeven point? What is the impact of fixed costs on the breakeven point? What is the impact of variable cost changes on the breakeven point? How do pricing changes alter the breakeven point? How can the product mix alter profitability? How do I conduct a ‘‘what-if’’ analysis with a single variable? How do I conduct a ‘‘what-if’’ analysis with double variables? How do I calculate cost variances? How do I conduct a profitability analysis for services? How are profits affected by the number of days in a month? How do I decide which research and development projects to fund? How do I create a throughput analysis model? How do I determine whether more volume at a lower price creates more profit? Should I outsource production? Should I add staff to the bottleneck operation? Should I produce a new product? 5-1 HOW DO I CALCULATE THE BREAKEVEN POINT? Breakeven analysis is the revenue level at which a company earns exactly no profit. It is also known as the cost-volume-profit relationship. To determine a breakeven point, add up all the fixed costs for the company or product being analyzed, and divide it by the .

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