Accounting for Managers: Interpreting accounting information for decision-making

GLOSSARY OF ACCOUNTING TERMS 377 Overhead allocation The process of spreading production overhead equitably over the volume of p ...

378 ACCOUNTING FOR MANAGERS Profit centre A division or unit of an organization that is responsible for achieving profit targets ...

GLOSSARY OF ACCOUNTING TERMS 379 Semi-fixed costs Costs that are constant within a defined level of activity but that can increa ...

380 ACCOUNTING FOR MANAGERS Throughput contribution Sales revenue less the cost of materials. Transaction The financial descript ...

Appendices: Questions and Case Studies Appendix 1: Questions Appendix 2: Solutions to Questions Appendix 3: Case Studies Appendi ...

382 ACCOUNTING FOR MANAGERS žMake suggestions to management to overcome any problems you have identified. The case studies are a ...

Appendix 1 Questions The questions are arranged by the chapter that contains the relevant tools and techniques, so that readers ...

384 ACCOUNTING FOR MANAGERS 6.2 Vibro PLC has fixed assets of £250,000, current assets of £125,000, long-term debt of £125,000 a ...

QUESTIONS 385 c A business with a financial year of 1 April/31 March purchases a new com- puter network server for £12,000 on 30 ...

386 ACCOUNTING FOR MANAGERS Table A1.2 Balance Sheet as at 31 December In £mill 2001 2000 Fixed assets Tangible assets 266.7 265 ...

QUESTIONS 387 Current year Previous year Return on (shareholders’) investment (ROI) net profit after tax shareholders’ funds 193 ...

388 ACCOUNTING FOR MANAGERS žactual cost per unit; žmarginal cost per unit. 8.3 Corporate Document Service incurs variable costs ...

QUESTIONS 389 Co.’s total operating profit if the special order were accepted in addition to the planned sales at full price? 8. ...

390 ACCOUNTING FOR MANAGERS is shown below: Number of Price per room rooms sold per night (£) 120 90 100 105 80 135 60 155 50 17 ...

QUESTIONS 391 9.3 Goldfish Enterprises’ costs for selling 15,000 hours of consultancy services are £345,000 and costs for 7,000 ...

392 ACCOUNTING FOR MANAGERS If the company has a limited production capacity, preventing all its budgeted sales from being produ ...

QUESTIONS 393 Cost to Cardinal to make each part: Direct materials £4 Direct labour 16 Variable manufacturing overhead 8 Fixed m ...

394 ACCOUNTING FOR MANAGERS An outside supplier, Cosmo PLC, has quoted a price of £1,000 for each VX-1 for an order of 100 of th ...

QUESTIONS 395 Questions for Chapter 11 11.1 Intelco, a professional services firm, has overheads of £500,000. It operates three ...

396 ACCOUNTING FOR MANAGERS Calculate the cost per unit of Product A and Product B under activity-based costing. 11.5 Cooper’s C ...