Accounting for Managers: Interpreting accounting information for decision-making

Appendix 4 Solutions to Case Studies Case study 1: Paramount Services PLC It is important to remember that ratio analysis is rea ...

458 ACCOUNTING FOR MANAGERS Table A4.1 Swift Airlines Outbound Inbound Total Revenue 14,195 15,500 29,695 Costs per passenger 87 ...

SOLUTIONS TO CASE STUDIES 459 The breakeven price for 100 passengers is: 12 , 500 100 (P−25) P=£150 Using Swift’s business model ...

460 ACCOUNTING FOR MANAGERS but in the absence of unionization, their interest in retaining their jobs and on-the- job learning ...

SOLUTIONS TO CASE STUDIES 461 This shows quite a different picture. However, the telemarketing manager is likely to point out th ...

462 ACCOUNTING FOR MANAGERS (scheduling) and deliveries. Contrary to the position in Table A3.6(b), Table A3.6(c) shows that Cry ...

SOLUTIONS TO CASE STUDIES 463 overhead as the principal measure of profitability, it would be likely to discontinue the Cryod! C ...

464 ACCOUNTING FOR MANAGERS Provided that payback, ROI, RI, NPV and IRR meet any board criteria, the invest- ment proposal appea ...

SOLUTIONS TO CASE STUDIES 465 Table A4.8 Carsons Stores In £’000 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year total Cash inflow ...

466 ACCOUNTING FOR MANAGERS of the final product. However, the adverse labour and overhead variances cannot be ignored. Labour c ...

Author Index............................................. The author index contains a list of the first-named author only. Alexa ...

468 ACCOUNTING FOR MANAGERS Jones, T.C., 95 Kaplan, R.S., 43 – 4, 46, 51, 126, 146, 160 – 1, 182, 241, 249 Langfield-Smith, K., ...

Subject Index ABC analysis, 77 Absorption costing, 161 – 6 Acid test (ratio), 85, 89 Account(s), 4, 26 – 7, 67 Accounting, and s ...

470 ACCOUNTING FOR MANAGERS Chartered Institute of Management Accountants (CIMA), 7, 46, 136 Chartermark, 46 Closed system, 56 C ...

SUBJECT INDEX 471 Enron, 31, 33, 100 Environmental accounting –seeSocial and environmental reporting Equity, 13 Ethics, 99 – 100 ...

472 ACCOUNTING FOR MANAGERS Marginal cost, 106, 203 Margin of safety, 109 – 10 Market-to-book ratio, 32 Market value added, 15 M ...

SUBJECT INDEX 473 Retail, budget example, 213 – 14, 217 – 19 Retail Stores PLC (case study), 117 – 19 Return on capital employed ...