tailieunhanh - Lecture Accounting: What the numbers mean (2/e) - Chapter 12: Management accounting, cost-volume-profit examined and applied

Chapter 12 - Management accounting, cost-volume-profit examined and applied. After completing this unit, you should be able to: Explain the need for planning by management and the control cycle, identify the major difference between financial and management accounting, explain the difference between variable and fixed costs,. | CHAPTER 12 Management Accounting, Cost-Volume-Profit Examined and Applied 12- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Learning Objectives Explain the need for planning by management and the control cycle. Identify the major difference between financial and management accounting. Explain the difference between variable and fixed costs. Use the high-low method to determine the cost formula for a mixed cost. Examine the contribution margin income statement format. Explain the contribution margin and use it in CVP analysis. Explain the meaning and significance of the break-even point. 12- 12Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Learning Objectives Explain the concept of operating leverage. Discuss the meaning and application of the terms: differential, allocated, sunk and opportunity. Discuss how costs are determined to be relevant for short-run decisions. Determine a special pricing decision when a firm is operating at full capacity. Analyse relevant costs in the make or buy decision. 12- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Planning by Management and the Control Cycle PLANNING Process of planning, organisation and control of an entity’s activities. To accomplish the entity’s purpose. 12- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Planning by Management and the Control Cycle Strategic, Operational, and Financial Planning Planning and control cycle Executing operational activities (Managing) Revisit plans Performance analysis: Plans vs actual results (Controlling) Implement plans | CHAPTER 12 Management Accounting, Cost-Volume-Profit Examined and Applied 12- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Learning Objectives Explain the need for planning by management and the control cycle. Identify the major difference between financial and management accounting. Explain the difference between variable and fixed costs. Use the high-low method to determine the cost formula for a mixed cost. Examine the contribution margin income statement format. Explain the contribution margin and use it in CVP analysis. Explain the meaning and significance of the break-even point. 12- 12Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Learning Objectives Explain the concept of operating leverage. Discuss the meaning and application of the terms: .