In this summary, chapters from the textbook McLaney, E. and Atrill, P. (2019). Accounting and Finance for Non- Specialists (11th Ed.). Pearson will be summarized. It includes an exercise at the end of every session.
The following subjects will be covered:
Relevance and Behaviour of Costs, Full Co...
,Finance
In this summary, chapters from the textbook McLaney, E. and Atrill, P. (2019).
Accounting and Finance for Non- Specialists (11th Ed.). Pearson will be
summarized. It includes an exercise at the end of every session.
The following subjects will be covered:
Relevance and Behaviour of Costs, Full Costing, Budgeting and Managing Working
Capital, Pricing Strategies and Types of Pricing, INCOTERMS and Pricing Strategies, and
International pricing.
SESSION 1 & 2 CHAPTER 7: THE RELEVANCE AND BEHAVIOR OF COSTS
CHAPTER 8: FULL COSTING............................................................................................................................
CHAPTER 7: THE RELEVANCE AND BEHAVIOR OF COSTS ....................................................................................................................
CHAPTER 8: FULL COSTING........................................................................................................................................................
TEST EXERCISE COSTS................................................................................................................................................................
SESSION 3 & 4 BUDGETING & MANAGING WORKING CAPITAL......................................................................
CHAPTER 9 BUDGETING............................................................................................................................................................
CHAPTER 12 WORKING CAPITAL AND MANAGING WORKING CAPITAL.................................................................................................
TEST EXERCISE BUDGETING........................................................................................................................................................
SESSION 5 & 6 INCOTERMS & INTERNATIONAL PRICING................................................................................
INCOTERMS.........................................................................................................................................................................
INTERNATIONAL PRICING...........................................................................................................................................................
Table of contents
TEST EXERCISE INCOTERMS........................................................................................................................................................
TEST EXERCISE COST FLUCTUATION..............................................................................................................................................
REVISION EXERCISES.....................................................................................................................................
EXERCISE 1.............................................................................................................................................................................
EXERCISE 2.............................................................................................................................................................................
EXERCISE 3.............................................................................................................................................................................
EXERCISE 4.............................................................................................................................................................................
, Session 1 & 2
Chapter 7: the relevance and behavior of costs
Chapter 8: full costing
Chapter 7: the relevance and behavior of costs
Key topics
1. Cost, Relevant and Irrelevant Cost
2. Cost Behaviour, Fixed and Variable Cost
3. Break-Even Analysis, Contribution, Margin of Safety
4. Marginal Analysis
Profitability: comparing incomes and outcomes.
Financial accounting:
Objective: reporting outsiders on what is happening in the company.
Highly regulated and are uniform, and historical.
Managerial accounting:
Objective: to find out information for internal use, decision making, decide on goals, strategic planning.
Not regulated, companies make their own rules, systems, procedures.
Cost and irrelevant cost
Cost/outcomes = resources, usually presented in monetary terms, that needs to be spend/sacrificed to achieve
business goals/objectives.
Costs are relevant and irrelevant costs for decision making
Historical costs = irrelevant
Opportunity costs / outlay costs = relevant
What makes a cost relevant: important when making a decision
1. Related to the business objective
2. Must be a future cost
3. Varies with decision / outcome will vary. The cost will change depending on the decision I take.
Cost. Behavior, fixed and variable cost
1. Vary with the volume of activity= variable cost
2. Does not vary of volume of the activity= fixed cost
Semi-fixed /semi-variable cost = foxed up to some level of activity, then variable
Break-even analysis, contribution, margin of safety
Break-even point: level of activity at which total cost = total sales revenue
Total cost= total fixed costs + total variable costs
BEP formula:
¿ cost
x=
Price per unit−variable cost per unit
Contribution per unit = sales revenue per unit (price) – variable cost per unit
¿ cost
Bep ( ¿units )=
Contribution per unit
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper judith3. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €5,39. Je zit daarna nergens aan vast.