Cost Accounting Manual 2013 STUDY NOTES FOR COST ACCOUNTING BY ATAUSH SHAFI Last Updated on: Tuesday‚ January 01 01‚ 2013 1 © For Suggestions & Feedbacks‚ contact: ATAUSH SHAFI (ataushshafi@gmail.com) Cost Accounting Manual 2013 Table of Contents CIMA OFFICIAL TERMINOLOGY .................................................................................... 3 COST OF GOODS SOLD FORMULE................................................................................ 13 COST CLASSIFICATION ...
Premium Management accounting Variable cost Costs
BMMF5103 – SUGGESTED ANSWERS: PART A Question 1 a. (i). E(r) = .05(-.5) + .10(-.15) + .2(.05) + .3(.15) + .2(.25) + .15(.40) = .125 = 12.5% (ii). Var =.05(-.50 - .125)2 + .1(-.15 - .125)2 + .2(.05 - .125)2 + .3(.15 - .125)2 + .2(.25 - .125)2 + .15(.40 .125)2 = .0428 Stddev = (.0428)1/2 = .2069 (iii) C.V. = .2069/.125 = 1.6552 b. First find the portfolio’s beta: 15% = 6% + (6%)bp 9% = 6%bp bp = 1.5. Let bc be the beta of the company for which she works. The portfolio’s beta is a weighted average
Premium Net present value Internal rate of return Cash flow
Harvard Business School 9-397-078 Rev. July 2‚ 1997 DO Vermeer Technologies (A): A Company is Born Charles Ferguson was exhilarated as he hung up the telephone after talking with Andy Marcuvitz‚ co-leader of the venture capital (VC) consortium that was considering financing Vermeer Technologies‚ Ferguson’s startup for developing software for the Internet. It was the first week of January 1995. Marcuvitz had called Ferguson to tell him that the group was prepared to make an initial infusion of
Premium Software engineering Software development
Chapter 14 - Obtaining Venture and Growth CapitalChapter 14 - Obtaining Venture and Growth Capital Student: ___________________________________________________________________________ 1. One of the toughest trade-offs for any young company is to balance the need for startup and growth capital with preservation of equity. True False 2. Bootstrapping an early stage company is a means of retaining equity. True False 3. A central idea with obtaining risk capital is that a smaller
Premium Venture capital Private equity
Chapter 1 - Managerial vs. Financial Accounting: -What are the differences between Financial (Acct 2210 or equivalent) and Managerial accounting? Which discipline seems to be more structured and places more emphasis on precision? Which focuses more on future planning and information relevance? Why? Financial accounting – provides information used primarily by investors‚ creditors‚ and others OUTSIDE a business. --External users (investors and creditors) have greater needs for general
Premium Management accounting Costs Cash flow
discusses the role of accounting in high-technology investments. Our discussion is framed around three propositions on: whether or not the stewardship role of accounting still holds; the usefulness‚ or otherwise‚ of accounting information in the valuation of high-technology investments; and assessing the value of intangible assets in the investment decision. We find that accounting no longer plays such a strong stewardship role‚ certainly for the venture capital investor. Further‚ its role in enabling
Premium Venture capital
cost of financing this spending is now higher‚ and consumers would be less likely to purchase a house or a car because the cost of financing their purchase is higher. 3. Explain the impact of interest rates on cost of funds and asset valuation like stocks and bonds. • A change in interest rates affects the cost of acquiring funds for financial institution • In addition‚ changes in interest rates affect the price of assets such as stock and bonds that the financial institution
Premium Bond Stock market Stock
the amount remaining after offsetting the PV of the inflows with the PV of the outflows. Thus‚ the NPV amount determines the incremental value created by undertaking the investment. B. Estimating Net Present Value Discounted cash flow (DCF) valuation—finding the market value of assets or their benefits by taking the present value of future cash flows‚ i.e.‚ by estimating what the future cash flows would trade for in today’s dollars. Net present value rule—an investment should be accepted
Premium Net present value Costs Variable cost
CASE13CM | | Student Version | | 9/21/96 | | | | | | | | HEAVENLY FOODS CORPORATION | Capital Budgeting Methods‚ Cash Flow Estimation‚ and Risk Analysis | | | | | | | | This case combines capital budgeting decision methods‚ cash flow estimation‚ and risk analysis | | | | | which are presented in Cases 12I and 13I. In addition‚ the case focuses on quantifying the | | | | | strategic option value of developing the new line of lite frozen pizzas. | | | | |
Premium Depreciation Cash flow Operating cash flow
Semi variable costs are also divided in the individual components of fixed cost and variable cost. - Fixed costs which remain constant regardless of the volume of production do not find place in the product cost determination and inventory valuation. - Fixed costs are treated as period charge and are written off to the profit and loss account in the period incurred. - Only variable costs are taken into consideration while computing the product cost. - Prices of products are based on variable
Premium Marginal cost Costs Cost