Download CIMA - C01 Fundamentals of Management Accounting: Study Text by BPP Learning Media PDF

By BPP Learning Media

Show description

Read Online or Download CIMA - C01 Fundamentals of Management Accounting: Study Text PDF

Similar managerial books

Lean Accounting: Best Practices for Sustainable Integration

Compliment for Lean Accounting top Practices for Sustainable Integration "Anyone inquisitive about a lean transformation unavoidably bumps up opposed to the vagaries of the accounting platforms that present overproduction and waste and appear to punish actual development. We ask yourself what could take place if the accountants truly got here to the construction flooring and witnessed firsthand the havoc created by way of their platforms.

Triple Bottom Line Risk Management: Enhancing Profit, Environmental Performance, and Community Benefits

An cutting edge, new method of possibility evaluate and administration that can assist you discover numerous possibilities to your corporation If a company desires to be sustainable within the twenty-first century, it's going to specialize in the continual advancements and power possibilities that probability administration bargains.

Accounting and Financial System Reform in a Transition Economy: A Case Study of Russia

A lot has been written concerning the financial and political difficulties of nations which are within the technique of altering from centrally deliberate platforms to industry structures. such a lot stories have interested by the industrial, felony, political, and sociological difficulties those economies have needed to face in the course of the transition interval.

Extra resources for CIMA - C01 Fundamentals of Management Accounting: Study Text

Sample text

CIMA Official Terminology Classification can be by nature (subjective), by purpose (objective) or by responsibility. 1 Classification by nature Subjective classification of expenditure indicates the nature of the expenditure. • • • Material Labour Expense Each grouping may be subdivided. 2 Classification by purpose Objective classification of expenditure indicates the purpose of the expenditure, the reason why the expenditure has taken place, which might be for: • • • Inventory valuation and profit measurement Decision making Control We’ll be looking at objective classification in the next few sections.

D is an indirect labour cost. 1 Production overhead Production (or factory) overhead includes all indirect material cost, indirect wages and indirect expenses incurred in the factory from receipt of the order until its completion, including: (a) Indirect materials which cannot be traced in the finished product. Consumable stores, eg material used in negligible amounts (b) Indirect wages, meaning all wages not charged directly to a product. 4 Distribution overhead Distribution overhead is all indirect material costs, wages and expenses incurred in making the packed product ready for despatch and delivering it to the customer, including: • • • Cost of packing cases Wages of packers, drivers and despatch clerks Depreciation and running expenses of delivery vehicles Question Direct and indirect labour costs Classify the following labour costs as either direct or indirect.

The variable cost per unit is the same amount for each unit produced whereas total variable cost increases as volume of output increases. A sketch graph of a variable cost would look like this. 1 Examples of variable costs (a) The cost of raw materials (where there is no discount for bulk purchasing since bulk purchase discounts reduce the unit cost of purchases). (b) Direct labour costs are, for very important reasons which you will study in Chapter 7, usually classed as a variable cost even though basic wages are often fixed.

Download PDF sample

Rated 4.02 of 5 – based on 3 votes