Resume
Samenvatting Accounting for managers KU Leuven
- Cours
- (D0N83A)
- Établissement
- Katholieke Universiteit Leuven (KU Leuven)
Samenvatting Accounting for managers KU Leuven
[Montrer plus]
Vendeur
S'abonner
Aperçu du contenu
Summary Accounting for ManagersCourse: Accounting for Managers (B-KUL-D0N83a-1920)
Prof. Amin Salimi Sofla
2019-2020
Summary written by Robin Kelchtermans
1
,Preface
This is a summary of the slides for the course Accounting for Managers at KU Leuven. Sometimes I follow the book,
instead of the slides or I add information from the book. The chapter numbers are the same as the lecture numbers
until chapter 9, then it messes up because of the quizzes (not included).
Book: Managerial Accounting, Sixth Edition (ISBN: 978-1-118-09689-5).
Be aware that this is a student writing. Typos, wrong conclusions, bad structure… will happen. If you see any (real)
mistakes, please let me know on robin.kelchtermans@student.kuleuven.be.
Dear future reader, this has been written in 2019-2020. So, please do not send me an email after 2020.
If you fail your exam: blame yourself. If you succeed: flowers and gifts are always welcome!
Good luck with this!
Definition = this is a definition (or something important).
2
,Table of Contents
Preface ............................................................................................................................................................ 2
Table of Contents ............................................................................................................................................ 3
1. Accounting Basics ..................................................................................................................................... 6
1.1. The Basics ..................................................................................................................................................... 6
1.2. Debit, Credit and Transactions ..................................................................................................................... 6
1.3. Trial Balance and Financial Statements ........................................................................................................ 7
2. Cost Concepts and Classifications .............................................................................................................. 9
2.1. Managerial Accounting ................................................................................................................................. 9
2.2. Cost Concepts and Classification .................................................................................................................. 9
2.2.1. Cost and Cost Object ............................................................................................................................ 9
2.2.2. Direct vs. Indirect costs.......................................................................................................................10
2.2.3. Variable vs. Fixed costs .......................................................................................................................10
2.2.4. Period vs. Product costs......................................................................................................................10
2.2.5. Prime Cost and Conversion Cost.........................................................................................................11
2.2.6. Flow of Costs .......................................................................................................................................11
2.2.7. Presentation of Costs..........................................................................................................................12
3. Job Order Costing ................................................................................................................................... 14
3.1. Types of Cost Accounting Systems .............................................................................................................14
3.2. Job Order Cost Flow....................................................................................................................................15
3.2.1. Accumulating Manufacturing Costs....................................................................................................15
3.2.2. Assigning Manufacturing Costs to Work in Process ...........................................................................15
3.2.3. Manufacturing Overhead Costs ..........................................................................................................16
3.2.4. Assigning Costs to Finished Goods .....................................................................................................17
3.2.5. Assigning Costs to Cost of Goods Sold ................................................................................................17
3.2.6. Summary of Job Order Cost Flows......................................................................................................17
3.3. Under- and Overapplied Overhead ............................................................................................................18
4. Process Costing ...................................................................................................................................... 20
4.1. Process Cost Flow .......................................................................................................................................20
4.2. Equivalent Units ..........................................................................................................................................20
4.2.1. Conversion costs .................................................................................................................................21
4.2.2. Refinements on the Weighted-Average Method ...............................................................................21
4.3. Production Cost Report ..............................................................................................................................21
4.4. Operation Costing .......................................................................................................................................22
5. Activity-Based Costing ............................................................................................................................ 24
5.1. Activity Based Costing versus Traditional Costing Methods ......................................................................24
5.2. How Costs are Treated Under Activity–Based Costing ...............................................................................24
5.2.1. Hierarchy of Activity Levels ................................................................................................................25
5.2.2. Allocation of costs...............................................................................................................................25
5.2.3. ABC in service industry .......................................................................................................................25
5.2.4. Costly Customer..................................................................................................................................26
5.2.5. General notes .....................................................................................................................................26
5.2.6. Example of ABC ...................................................................................................................................26
5.3. Product Margins .........................................................................................................................................26
3
, 5.3.1. The traditional way .............................................................................................................................26
5.3.2. The ABC way .......................................................................................................................................26
5.3.3. Differences ..........................................................................................................................................26
5.4. External Reporting & ABC Limitations ........................................................................................................27
6. Activity Based Management (ABM)......................................................................................................... 28
6.1. Activity Analysis ..........................................................................................................................................28
6.1.1. The Importance of Customer-Perceived Value ..................................................................................28
6.1.2. Eliminating Non-Value-Added Activities.............................................................................................29
6.1.3. Identifying Value-Added Activities .....................................................................................................29
6.2. Activity Management .................................................................................................................................29
6.2.1. Tools for Determining Root Cause......................................................................................................29
6.2.2. Implementation of Activity Based Costing & Management ...............................................................29
7. Cost-Volume-Profit Relationships ........................................................................................................... 31
7.1. Contribution Margin ...................................................................................................................................31
7.1.1. Basics of Cost-Volume-Profit Analysis ................................................................................................31
7.1.2. The Contribution Approach ................................................................................................................31
7.1.3. CVP Relationships in Equation Form ..................................................................................................31
7.1.4. Cost-Volume-Profit Graph ..................................................................................................................31
7.1.5. Contribution Margin Ratio (CM Ratio)................................................................................................32
7.1.6. Changes on Net Operating Income.....................................................................................................32
7.2. The Break-even Point & Target Profit.........................................................................................................32
7.2.1. Break-even Analysis ............................................................................................................................32
7.2.2. Computing the Break-even Point for a Multiproduct Company ........................................................33
7.2.3. Target Profit Analysis ..........................................................................................................................33
7.3. The Margin of Safety and its Significance ...................................................................................................34
7.3.1. Cost Structure and Profit Stability ......................................................................................................34
7.3.2. Operating Leverage ............................................................................................................................34
7.3.3. Structuring Sales Commissions ...........................................................................................................34
7.4. Formula Review ..........................................................................................................................................35
8. Relevant Information and Decision Making ............................................................................................. 36
8.1. Relevant and Irrelevant Costs .....................................................................................................................36
8.2. Adding and Dropping Segments .................................................................................................................36
8.3. Make or Buy Analysis ..................................................................................................................................36
8.3.1. Vertical Integration and Value Chain Economies ...............................................................................37
8.3.2. The Make or Buy Decision ..................................................................................................................37
8.4. Special Orders .............................................................................................................................................37
8.5. Constrained Resources ...............................................................................................................................37
8.6. Joint Costs and Products.............................................................................................................................37
9. Financial Statement Analysis .................................................................................................................. 39
9.1. Horizontal Analysis .....................................................................................................................................39
9.2. Vertical Analysis ..........................................................................................................................................40
9.3. Ratio Analysis ..............................................................................................................................................41
9.3.1. Liquidity Ratios ...................................................................................................................................42
9.3.2. Profitability Ratios ..............................................................................................................................43
9.3.3. Solvency Ratios ...................................................................................................................................44
9.3.4. Remarks and Limitations ....................................................................................................................45
9.3.5. Summary of Ratios ..............................................................................................................................46
4
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur Walvis1997. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €5,39. Vous n'êtes lié à rien après votre achat.
Peut-on faire confiance à Stuvia ?
4.6 étoiles sur Google & Trustpilot (+1000 avis)
50064 résumés ont été vendus ces 30 derniers jours
Fondée en 2010, la référence pour acheter des résumés depuis déjà 14 ans