Management Accounting

Cover......Page 1
Management Accounting......Page 4
ISBN-10: 1412918847  ISBN-13: 9781412918848  ISBN-10: 1412918855  ISBN-13: 9781412918855......Page 5
Contents......Page 6
How to use this book......Page 8
Thinking like a management accountant......Page 9
Part Two: Core areas of the curriculum......Page 14
Key ideas......Page 15
Sunk costs......Page 17
Cost and volume......Page 20
Direct and indirect costs......Page 23
Types of costing system......Page 24
3 Product mix......Page 34
Discontinuing a product......Page 35
Make or buy......Page 37
Optimum mix under conditions of limited capacity......Page 38
Decision trees......Page 40
Special order – accept or reject......Page 42
Customer profitability segmentation......Page 44
4 Investment......Page 45
Accounting rate of return (ARR)......Page 46
Payback......Page 47
Net present value (NPV)......Page 48
Internal rate of return (IRR)......Page 50
Discounting methods: pros and cons......Page 51
Complications......Page 52
Outcome audit......Page 56
Behavioural aspects......Page 57
5 Budgeting......Page 58
The budget pyramid......Page 59
Budgeting and control......Page 60
The cash budget......Page 61
6 Standard costing......Page 64
Flexing budgets......Page 65
Calculating variances......Page 66
7 Divisional performance......Page 74
Return on investment......Page 75
Transfer pricing......Page 76
Computer information systems......Page 79
Job and process costing......Page 81
Economic order quantity (EOQ)......Page 83
Competitive advantage......Page 86
Measuring cycle time......Page 87
Part Three: Study, writing and revision skills (in collaboration with David McIlroy)......Page 90
Use of lecture notes......Page 91
Mastering technical terms......Page 92
Note-taking strategy......Page 93
Developing the lecture......Page 94
Not to be underestimated......Page 95
The right climate in seminars......Page 96
Links in learning and transferable skills......Page 97
The tributary principle......Page 99
Listing and linking the key concepts......Page 100
Stirring up passions......Page 101
Structuring an outline......Page 102
Finding major questions......Page 104
Citation and referencing......Page 105
Careful use of quotations......Page 106
Conclusion – adding the finishing touches......Page 107
Top-down and bottom-up clarity......Page 108
Start at the beginning......Page 109
Keep organised records......Page 110
Use past papers......Page 111
Employ effective mnemonics (memory aids)......Page 112
Revising with others......Page 113
Revision for a management accounting examination......Page 114
5 Tips on interpreting essay and exam questions......Page 116
A politician’s answer......Page 117
Missing your question......Page 118
Write it down......Page 119
Analyse the parts......Page 120
If a critique is requested......Page 122
If asked to compare and contrast......Page 123
Whenever evaluation is requested......Page 124
6 Exam tips......Page 125
Time management in the exam......Page 126
Control wandering thoughts......Page 128
The art of ‘name dropping’......Page 129
In the management accounting examination …......Page 130
Glossary......Page 132
References......Page 138
Index......Page 139