Chapter 1 Basic Cost Concepts Learning Objectives • To understand the meaning of different costing terms to understand different costing methods • To have a basic idea of different costing techniques • To understand the meaning of cost sheet In order to determine and take a dispassionate view about what lies beneath the surface of accounting figures‚ a financial analyst has to make use of different management accounting techniques. Cost techniques have a precedence over the other
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Four bases of segmentation Geographic Collecting and analysing information according to the location of the customer or other data source. Geographic segmentation is often used in marketing‚ since companies selling products and services would like to know where their products are being sold in order to increase advertising and sales efforts there. A local shop such as a local takeaway use geographic segmentation by targeting customers within a 10 mile radius‚ they can do this by posting leaflets
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We already know that following are the important cost concepts related to the production process of a firm: • Fixed Cost • Varibale Cost • Average Cost • Marginal Cost please refer to following page Introduction to Cost Concepts to understand various cost concepts in detail. Here we will briefly state again the meaning of above stated cost concepts for better understanding of the module on short run cost analysis. Fixed Cost is that cost which does not change (that is either goes up or
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Biological Bases of Behavior Nervous System Made up of neurons‚ which are the nerve cells. These send electrical impulses to one another ( through a process known as firing) telling the body what to do. The parts of a neuron include: Cell Body (a.k.a. soma) – Main part of neuron; contains basic cell parts such as nucleus‚ ER‚ etc.; also has dendrites extending from it. Dendrites – bushy fibers which extend from the soma; receives impulses and directs them towards soma Axon – an extension
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Cost Behavior Cost behavior is term for describing whether a cost changes when the level of output changes. The cost can vary proportionately with the changes in the level of activity or unaffected by changes in the level of activity. Costs can be variable‚ fixed‚ or mixed. A cost that does not change in total as output changes is a fixed cost. A variable cost‚ on the other hand‚ increases in total with an increase in output and decreases in total with a decrease in output. Understanding how costs
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Dealing with Team Structures and Leadership | Project management | | INTRODUCTION When dealing with the management of an organisation’s resources‚ it is essential to establish a strategy for supporting the project structures with appropriate team structures and leadership style. A necessary consideration is to identify how human resources may affect the progress of the project and whether a specific plan must be in place. There are three very important aspects of project management
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Marie and Meursault: Meant to Be or Want to Be? “It occurred to me that anyway one more Sunday was over‚ that Mamam was buried now‚ that I was going back to work and that really‚ nothing had changed.”(1.1.15) These are some of the words that ran through Meursault’s mind after his mother’s death. He was very isolated from her so he felt as if nothing had changed. He was not the most outgoing person but the same cannot be said about his love interest‚ Marie. Throughout the novel‚ The Stranger‚ Meursault
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What is Cost & Management Accounting Reporting Systems? Cost Accounting Reporting System deals with the process of tracking‚ measuring‚ recording and classifying the appropriate allocation of expenditure (financial and non-financial) for the determination of the cost of product or service in an organization and for the presentation of suitably arranged data for the purpose of control and guidance of management (Horngren et al‚ 2010). Costs are measured in terms of Direct Costs‚ Indirect Costs and
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Cost Management or Cost Control In broad sense‚ both the terms have the same meaning. Yet cost management seems to connote broader perspective. Cost control to an un-initiated may mean cutting down the incurrence of cost or expenditure every time or in every situation. In reality it is not always so. In many specific situations‚ many times‚ one has to spend or incur cost in order to gain or make more money. It is in fact like an investment. Cost management sounds better then. Profits Making
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Accounting Activity 2.4 - Case Study 1: Cost Terms and Concepts In this module you will have an opportunity to demonstrate your understanding of cost terms and their application in the aviation industry. For this Case Study complete the four requirements below: 1. ABC Airlines has determined both the fixed and variable costs per flying hour associated with flying each of the 10 different types of aircraft in their fleet. How might this type of information be useful in determining the costs associated
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