Class notes

Lecture notes Management accounting (IY407)

0 purchase

Course
Management accounting (IY407)

Institution
University Of The West Of England Bristol (UWEB)

Introduction to management accounting, covering all the basics of Managerial accounting for universities students. Includes introduction, Accounting concepts, Stock control, Overhead allocation, Pricing methods, Budgeting, Activity based costing, Produce costing, NPV, IRR etc. in simple terms for b...

[Show more]

Preview 3 out of 17 pages

View example

Uploaded on July 18, 2023
Number of pages 17
Written in 2022/2023
Type Class notes
Professor(s) N/a
Contains All classes

managment accounting
accounting basics
irr
npv
activity based costing
stock control
budgeting
fifo
lifo
overhead allocation
produce costing
accounting pricing
accountin
accounting appraisal techniques

Institution
University of the West of England Bristol (UWEB)
Education Unknown
Course
Management accounting (IY407)

$20.11

Add to cart

Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

Theme 1: Introduction

Accounting
The process of identifying, measuring and communicating economic information to
permit informed and decisions by users of information

Accounting equation
Capital = Assets - liability

Purpose of business
● Purpose of business is to create and keep of customers
● In order to succeed a business must focus on keeping the customer satisfied

Types of business
● Sole trader
● Partnership
● Limited Company
● PLC
● Charity organisations
● Governments
● Franchise

Objectives
● Profitability
● Productivity
● Customer service
● Growth
● Maintain Finance
● Marketing
● Competitive Analysis
Why are businesses divided in departments?
● The sheer volume of activity or number of staff employed makes it impossible for
one person to manage them.
● Certain business operations require specialised knowledge and expertise
● Geographical locations of some of business operations makes it more practical to
have managers managing the different operations in each location.

Purpose of cost information;
1. Inventory valuation

, 2. Future costs and budgeting
3. Cost control and performance

Strategic management process:
1. Establish mission and objectives
2. Undertake a position analysis
3. Identify and assess the strategic options and formulate plans
4. Preform, review and control

Management information system:
- MIS is a computerised database of financial information organised and
programmed in a way that produces regular reports on operations for every level

Common features:
● information identification
● Information recording
● information analysis
● Information reporting

What information do managers need?
1. Developing objectives and plans: managers are responsible for establishing
mission and objectives - so MIS need to generate information financial and non
financial to allow the to set the goal and objectives
2. Performance evaluation and control: MIS can help in reviewing performance of
the business against agreed
3. Allocating resources: resources available to a business are limited. Managers
need to ensure that they are used in an effective and efficient manner
4. Determining costs and benefits: management accounting can provide managers
with costs and benefits associated with a particle strategy

Financial vs management accounting;
- Managerial accounting: (cost accounting)
The process of identifying, measuring & interpreting and communicating information for
the pursuit of an organisation

● information used by the managers in order to assess progress and take
important decisions
● Tends to be more detailed
● Not subject to any regulations as they are for internal business use
● Prepared when are required by managers

, ● Can be used for budgeting or future planning
● Reports include opportunities, risk, analysis

- Financial
● information used by external shareholders i.e government, investors, employees
● Shows the big picture (overview)
● Reports are subject to regulatory framework set down by laws
● Prepared on an annual basis
● Tends to summarise historic information
● Only quantitative capital (monetary valued items) included in reports

- Key aspects:
● Identifying: key financial components of an organisation i.e assets, liabilities
● Measuring: the monetary value of key components of an organisation in a way
that represents its true value
● Communicating: the financial information in ways that are useful to the users of
that information

- Strategic management process
1.Establish mission and objectives
2.Undertake a position analysis
3.Identify and assess the strategic options
4.Select strategic options and plan ahead
5.Preform review and control
Accounting concepts
Accounting assumptions & characteristics & concepts
- Assumptions
● going concern (accountants assume unless there is evidence that the company
is not going broke - continuity)
● Accrual/matching (income should be properly matched with the expenses of a
given accounting period)

- Characteristics
● Understandability; easy to understand with basic skills
● Relevance; has to be useful in context
● Reliability; truthful, accurate and verifiable
● Comparability; comparable in performance over time

- Concepts:
● Prudence: profits are not recognised until a sale has been complete

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller noorsherif. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $20.11. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69411 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling