ACCA - F2 Management Accounting: Study Text by BPP Learning Media PDF

By BPP Learning Media

ISBN-10: 0751763624

ISBN-13: 9780751763621

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Sample text

True False 5 Organisation Objective Profit making Non-profit making 6 What are the three types of management activity identified by R N Anthony? (1) (2) (3) 7 ………………………. ………………………. ………………………. A management control system is A A possible course of action that might enable an organisation to achieve its objectives B A collective term for the hardware and software used to drive a database system C A set up that measures and corrects the performance of activities of subordinates in order to make sure that the objectives of an organisation are being met and their associated plans are being carried out D A system that controls and maximises the profits of an organisation 8 List six differences between financial accounts and management accounts.

In this case he will want information about which products yield the highest contribution. 5 Revenue centres FAST FORWARD 50 Revenue centres are similar to cost centres and profit centres but are accountable for revenues only. Revenue centre managers should normally have control over how revenues are raised 2: Cost classification ~ Part B Cost classification, behaviour and purpose A revenue centre manager is not accountable for costs. He will be aiming purely to maximise sales revenue. He will want information on markets and new products and he will look closely at pricing and the sales performance of competitors – in addition to monitoring revenue figures.

An assessment of the value of information can be derived in this way, and the cost of obtaining it should then be compared against this value. On the basis of this comparison, it can be decided whether certain items of information are worth having. It should be remembered that there may also be intangible benefits which may be harder to quantify. 3 Why is information important? Consider the following problems and what management needs to solve these problems. (a) (b) (c) A company wishes to launch a new product.

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ACCA - F2 Management Accounting: Study Text by BPP Learning Media

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