Een bondige samenvatting die alle informatie bevat die nodig is voor het tentamen van accounting for management control. Zowel een samenvatting van het boek als aantekeningen bij de hoorcolleges.
,Management accounting = providing information that may be used to plan, direct, motivate and control
an organization.
Planning: Budgets (budgeting) represents the management’s plans.
Controlling: feedback -> performance report = comparing budgets to actual results.
Planning and control cycle.
Principal activities management process:
- Planning
- Decision making
- Controlling
Management accounting isn’t mandatory. It is characterized by (t.o.v. financial accounting):
- An emphasis on the future.
- Relevance and flexibility data.
- Emphasis on timeliness rather than precision.
- Focus on the segments of an organization.
Financial accounting = reporting externally, for example to the stakeholders. For example, the balance
sheet.
Management accounting = things needed to make right decisions. It is not mandatory. It’s purpose is to
make the organization function in a good way.
Influences on management accounting:
- New business processes and technologies
- Enterprise resource planning systems.
- More emphasis on business ethics
- The increased importance of service sector management
- Focus on value creation instead of just checking.
- Environmental sustainability.
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, Hoofdstuk 2
Manufacturing costs:
- Direct materials -> raw materials = any materials that are used in the final product.
- Direct labour = labour that can be easily traced to individual units of products.
- Manufacturing overhead = all costs except direct materials and direct labour. For example:
indirect materials and indirect labour.
Prime cost = direct labour + direct materials.
Conversion cost = direct labour + manufacturing overhead.
Non-manufacturing costs:
- Marketing or selling costs = all costs made to secure customer orders.
- Administrative costs = costs associated with the general management of an organization.
Product costs -> all costs that are involved in acquiring or making a product -> direct materials, direct
labour, manufacturing overhead. Balance sheet.
Also called stock-related costs, because they go directly into inventory accounts.
Period costs -> profit and loss account. In the period they belong to.
Cost behaviour = how a cost will react or respond to changes in the level of business activity.
- Variable vs. fixed costs.
Differential costs/incremental costs = a difference in costs between two alternatives.
Sunk costs aren’t differential -> they stay even when you choose an alternative.
Salary can be differential -> it changes when you choose an alternative (another job in this case).
Not all differential costs are opportunity costs.
Opportunity cost = the potential benefit that is given up when one alternative is selected over another.
Sunk cost = a cost that has already been incurred and that cannot be changed by any decision made now
or in the future.
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