Accounting for Managers: Interpreting accounting information for decision-making

470 ACCOUNTING FOR MANAGERS

Chartered Institute of Management
Accountants (CIMA), 7, 46, 136
Chartermark, 46
Closed system, 56
Companies Act, 67, 83
Conflict, 56
Conservatism, 33
Consistency, 33
Contingency theory, 56 – 7, 158, 170 – 1, 174,
249
Continuous improvement, 135
Contract, 50, 78
social, 95
Contribution, 108, 112, 198
Control –seeManagement control
Controllability, 198 – 9, 205
Corporate finance, 14
Corporate Report, 94
Corporate Social and Environmental
Reporting (CSR) –seeSocial and
environmental reporting
Cost, 26–7, 69
accounting, 7
behaviour, 105–6
centre –seeCost centre
control, 240–1
defined, 34
direct –seeDirect cost
driver –seeCost driver
employment, 142–3
environmental, 34
fixed –seeFixed costs
full, 111
human, 34
improvement, 240
indirect –seeIndirect cost
marginal, 106
object, 34
of capital –seeCapital, cost of
of quality, 136
of sales, 27, 69, 155 – 6
per unit of production, 142 – 3
pool, 166 – 7, 169
prime, 157
relevant –seeRelevant costs
semi-fixed, 105
semi-variable, 105 – 6
social, 34
standard, 123
systems, 160 – 1
variable –seeVariable costs
variances, 231
Cost centre, 20, 34, 162 – 6, 169, 196
budgeted overhead rate, 162, 165
service cost centre, 163 – 4
Cost driver, 122, 146, 166 – 7, 208, 240

Cost-plus pricing, 111 – 12, 203

Cost-to-function analysis, 135

Cost – Volume – Profit analysis (CVP),

106–11

Creative accounting, 99 – 100

Credit, 27

credit limits, 76

credit terms, 77

Creditors, 27, 71, 75, 77

Critical perspective (or paradigm), 10, 21,

58, 61–3, 191–2, 205–6, 247–50

Culture, 59 – 61, 174 – 5

Current assets, 71

Current liabilities, 71

Cybernetic control, 41, 56, 58

Database Management Company (case

study), 148–51

Days’ purchases outstanding (ratio), 77

Days’ sales outstanding (ratio), 76

Debt, 13

Debtors, 27, 71, 75

collection policy, 76

see alsoCredit

Decentralization, 195, 250

Depreciation, 73 – 4, 183

Direct cost, 141 – 2, 156, 158

direct labour cost, 143, 157

direct labour hour rate, 162

direct materials, 157

Disclosure, 33, 68

Discounted cash flow (DCF), 183, 186, 189

factors (table), 193

Discount rate, 187

Discourse, 62

Dividend, 14, 70, 89

per share (ratio), 87

payout (ratio), 87

yield (ratio), 87

Divisionalization, 195 – 6

divisional structure, 20 – 1

Double entry, 27, 30

Doubtful debts, 73

DuPont Company, 6, 196

Earnings before interest and taxes (EBIT),

70, 88

Earnings before interest, taxes, depreciation

and amortization (EBITDA), 74

Earnings management, 32, 100

Earnings per share, 87, 89

Economic paradigm –seeRational

paradigm

Economic Value Added (EVA), 17, 51,

197, 205