Samenvatting

Samenvatting Management Accounting Bedrijfskunde EUR - en

1 keer verkocht

Instelling
Erasmus Universiteit Rotterdam (EUR)

The summary contains all the chapters of the book for the Management exam for BA/BA students (yr 2). It also includes an overview of all the lectures.

[Meer zien]

Laatste update van het document: 1 jaar geleden

Voorbeeld 4 van de 58 pagina's

Bekijk voorbeeld

Heel boek samengevat? Nee
Wat is er van het boek samengevat? C1, c2, c3, c4, c5, c8, c9, c10, c11, c13, c14, c16, c18, c19
Geupload op 11 juni 2023
Bestand laatst geupdate op 12 juni 2023
Aantal pagina's 58
Geschreven in 2022/2023
Type Samenvatting

strategy
cost management
management accounting
cost management information

€6,99

In winkelwagen

Op verlanglijstje

100% tevredenheidsgarantie
Direct beschikbaar na je betaling
Lees online óf als PDF
Geen vaste maandelijkse kosten

Management Accounting Summary – book & lectures
Module 1
L1: Introduction (C1, C3)
Strategy: plan that outlines the purpose & long-term direction of a firm.
 Competitive strategy: (combi of both = lowest success)
- Production differentiation: focuses on offering superior or unique products/services
to foster brand loyalty and higher prices
- Cost leadership: emphasizes producing at the lowest cost to achieve lower selling
prices
- Measuring and assessing results are crucial, and management accounting plays a
strategic role by providing metrics and tools for this purpose

Cost classification
 Cost allocation: direct vs. indirect costs (‘estimating products/service costs’)
- Direct costs (easily traced to cost objects) & indirect/overhead costs (can’t be
directly traced)
- Cost assignment: tracing direct costs & allocating indirect costs using a cost
driver/allocation base
- Cost object: item/entity for which the cost is being determined

Cost assignment example
1. OH rate = OH/ sum base (can be DL € or DL hours)
2. OH rate * cost driver usage each type

Cost behavior: fixed vs. variable costs (financial planning)
 Variable costs: change in proportion with volume of a cost driver, such as
production/sales quantity
 Fixed costs: don’t change in proportion with volume of a cost driver, at least not
within the relevant range

Fixed: depreciation, CEO compensation, assembly line labor
Variable: CEO compensation, assembly line labor, plant electricity, salesforce commissions

Piecewise Linear Variable Costs
 ‘Variations in the cost driver explain variations in total costs’
 ‘Cost behavior is approximated by a linear cost function within the relevant range’

1

,MC (x) = increase in costs from producing an additional unit of output at point x (first
derivative of function)

Cost functions: depict how costs change with changes in cost driver

Fixed costs over the long-term
- Fixed costs aren’t always fixed on the long term, since firms react on the business
activity

- Relevant range: range in which the relationship between the activity/volume level
and the respective cost is constant
- When business activity declines, firms divest to eliminate excess capacity
- When business activity increases, firms invest to increase capacity
- Over the long-term fixed costs behave like step-functions

Cost relevance: relevant vs. irrelevant costs (‘internal decision making’)
 Relevant costs and revenues are those that
1. Differ between alternative courses of actions and;
2. Affect future cash flows
 Irrelevant costs: sunk costs, are already incurred costs

Cost recording: product vs. period costs (for external financial reporting)
 Product costs: include expenses necessary for manufacturing or purchasing and
transporting product for sale, such as DM, DL, & factory overhead.
 Period costs (non-product costs): all other expenses related to managing or selling
the product, incl. selling expenses. & administrative expenses.
Flow of product and period cost

2

,Manufacturing company
 Raw materials are purchased and (as soon as production starts) then moved to
material inventory.
 When production begins, the raw materials are used and transferred in the WIP
inventory.
 Once the products are finished, they are recorded as COGS manufactured and stored
in the finished goods inventory.
 When the products are sold, they are recognized as COGS

C1: Cost Management & Strategy
 Cost management – by management accounting who reports to controller- is
essential for success
 Development strategy: plan to achieve competitive success
Management Accounting & Role of Cost management
- Cost management information: financial & non-financial information
- Main focus: usefulness and timeliness
 Cost management: development & use of cost management information

Management accounting vs. financial accounting
 MA: decision making, intern, detailed, long timespan, no rules, future
 Financial Accounting: external, summarizing, many rules (GAAP, CPA/IFRS)

Value chain – in this, information is developed & utilized

Management functions – rely on cost information for effective decision-making
 Strategic management (!): involves developing and implementing a competitive
position through specific goals and actions plans
 Planning & Decision-making: encompass budgeting, profit planning, cash flow
management, & other business-related decisions
 Management & Operational control: consists of evaluating middle-level managers
(management control) by upper level & operating-level managers (operational
control) by middle level.
 Preparation of financial statements: relevant for all 3 functions

Cost management is relevant for all types of organizations:
 Merchandising firms: resale firms (wholesaler & retailer).
- Cost Management information: inventory control, distribution, & customer service
 Manufacturing firms: focus on converting raw materials & labor into product.
- Cost Management information: control of production costs.

3

,  Service firms: provide convenience, freedom, safety, or comfort
- Cost Management information: selecting profitable services & managing service-
related expenses.
 Government agencies & nonprofits: provide services without a direct correlation
between payment amount & service itself.

Public goods: geen echte/typische markt; onmogelijk consument uitsluiten van consumptie

Competitive firm
 Anticipates regulatory changes
 Customer driven
 Recognized the cultural, social, politic, complex environment
 Utilized advanced production & information technologies
 Anticipates the impact of changing regulatory requirements and customer
preferences

Cost management: focuses on identifying Critical Success Factors (CSFs) (measurement).
1. Basic internal transaction reporting systems (internal)
2. External financial reporting for reliably financial reports
3. Track key activity data & development accurate and relevant cost information for
decision-making
4. Incorporating strategic cost information
- Management accountants report to the management team, aiding in strategy
implementation & identifying CSFs for competitive position

Modern management techniques
Direct focus on strategy implementation & include the following:
 Balanced Scorecard (BSC): accounting report that incorporates critical success
factors such as financial performance, customer satisfaction, internal processes, and
learning & growth. It provides a more comprehensive view by considering non-
financial information.
Strategy maps: help understand how improvements in certain (crucial) measures
contribute to better business goals and financial outcomes
 Value chain analysis: method for identifying specific steps in delivering a
product/service to customers. It helps fain insights into competition, cost reduction
opportunities, & potential areas for outsourcing.
 Activity-based costing and management: detailed cost analysis based on specific
business activities. Activity-based accounting improves cost analysis precision, while
activity-based management focuses on enhancing product value & competitive
positioning.
 Business intelligence: the use of data by management accountants to understand
and analyze business performance, incl. regression and correlation analysis for
predicting customer behavior.
 Target costing: determining product costs based on desired profits and competitive
factors. It promotes competitiveness, encourages price differentiation, and may
drive product redesign.

4

Dit zijn jouw voordelen als je samenvattingen koopt bij Stuvia:

Bewezen kwaliteit door reviews

Studenten hebben al meer dan 850.000 samenvattingen beoordeeld. Zo weet jij zeker dat je de beste keuze maakt!

In een paar klikken geregeld

Geen gedoe — betaal gewoon eenmalig met iDeal, creditcard of je Stuvia-tegoed en je bent klaar. Geen abonnement nodig.

Direct to-the-point

Studenten maken samenvattingen voor studenten. Dat betekent: actuele inhoud waar jij écht wat aan hebt. Geen overbodige details!

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 ariska12. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor €6,99. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

4,6 sterren op Google & Trustpilot (+1000 reviews)

Afgelopen 30 dagen zijn er 68175 samenvattingen verkocht

Opgericht in 2010, al 15 jaar dé plek om samenvattingen te kopen

Begin nu gratis

Samenvatting

Samenvatting Management Accounting Bedrijfskunde EUR - en

Document informatie

Onderwerpen

Gekoppeld boek

Meer samenvattingen voor studieboek

Geschreven voor

Verkoper

Voorbeeld van de inhoud