Professional Documents
Culture Documents
Managerial Accounting
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
54% CEOs survey unethical business is a common practice. 55% of 2000 employees surveyed observed unethical conduct. Ethics
a system of moral principles: the ethics of a culture. the rules of conduct recognized in respect to a particular class of human actions or a particular group, culture, etc.: medical ethics moral principles, as of an individual: His ethics forbade betrayal of a confidence. a philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
ETHICS
body of principles governing right and wrong may be merely to enable ex post facto, abstract judgements about good and evil OR might be instrumentalist with volitional or motivational power thereby influencing actors' behaviour
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Without ethical standards in business, the economy, and all of us who depend on it for jobs, goods, and services, would suffer.
Abandoning ethical standards in business would lead to a lower quality of life with less desirable goods and services at higher prices.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Moral
(from Latin morlis) is a message conveyed or a lesson to be learned from a story or event. The moral may be left to the hearer, reader or viewer to determine for themselves, or may be explicitly encapsulated in a maxim.
Moral Values
the standards of good and evil, which govern an individuals behavior and choices. Individuals morals may derive from society and government, religion, or self.
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values.
Unisels Vision
To be a renowned university that nurtures professionals and scholars with high moral and ethical values.
Unisels Mission
Unisel is committed to provide excellent and conducive learning environment to develop competent, upright and ethical professionals & scholars
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values.
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
INSTITUTIONAL OBJECTIVE
Institutional objective of Universiti Selangor (Unisel) is to be a renowned university that nurtures professionals and scholars with high moral and ethical values
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
ACCOUNTANTS RESPONSIBILITY
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
ACCOUNTANTS RESPONSIBILITY
1. Maintain integrity by presenting financial results accurately and objectively do the right thing to be aware of your own conduct to become familiar with policies and procedures to avoid misconduct. 2. Avoiding the potential for conflicts of interest (COI)
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
STRATEGY
A strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors.
The focal point of a companys strategy should be its target customers.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Deliver products and services faster, more conveniently, and at lower prices.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
WORK OF MANAGEMENT
Planning
Controlling
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Begin
Decision Making
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Managerial Accounting
Managers who plan for and control an organization Future emphasis Emphasis on relevance for planning and control Emphasis on timeliness Focuses on segments of an organization Need not follow GAAP or any prescribed format Not Mandatory
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
CORPORATE GOVERNANCE
The system by which a company is directed and controlled. Board of Directors
Incentives and monitoring for
Top Management
To pursue objectives of
Stockholders
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
CORPORATE GOVERNANCE
An effective corporate governance system should also protect the interests of the companys other stakeholders.
Employees
Customers
Creditors
Suppliers
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Managerial Accounting
COST TERMS, CONCEPTS AND CLASSIFICATIONS
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
COST CLASSIFICATIONS
(a) Manufacturing Cost (Product Cost)
1. Direct Cost
2.Indirect Cost
Direct Materials
Direct Labor
Manufacturing Overhead
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Direct costs
Indirect costs
Costs that can be easily and conveniently traced to a unit of product or other cost object. Examples: direct material and direct labor
Costs that cannot be easily and conveniently traced to a unit of product or other cost object. Example: manufacturing overhead
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
COST TERMS
Direct Materials Direct Labor Manufacturing Overhead
The Product
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Direct Materials
Manufacturing Overhead
Direct Labor
Integral part of the product and that can be conveniently traced directly to it.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Prime Cost
Conversion Cost
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
COST CLASSIFICATIONS
(b) Non-manufacturing Cost (Period Cost)
Selling Costs
Administrative Costs
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Balance Sheet
Income Statement
Income Statement
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Which of the following costs would be considered a period rather than a product cost in a manufacturing company?
A. Manufacturing equipment depreciation. B. Property taxes on corporate headquarters. C. Direct materials costs. D. Electrical costs to light the production facility. E. Sales commissions.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Which of the following costs would be considered a period rather than a product cost in a manufacturing company?
A. Manufacturing equipment depreciation. B. Property taxes on corporate headquarters. C. Direct materials costs. D. Electrical costs to light the production facility. E. Sales commissions.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Manufacturers . . .
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Manufacturer
Current Assets
Cash Receivables Prepaid Expenses Inventories Raw Materials Work in Process Finished Goods
Inventory
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
BALANCE SHEET
Merchandiser Current assets
Cash
Receivables Prepaid Expenses
Partially complete Merchandise been added. products some material, Inventory labor, or overhead has
Manufacturer
Current Assets
Cash
Receivables Materials waiting to be Prepaid Expenses processed. Inventories Raw Materials Work in Process Finished Goods
Completed products awaiting sale.
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Manufacturing Company
Cost of goods sold: Beg. finished goods inv. + Cost of goods manufactured Goods available for sale - Ending finished goods inventory = Cost of goods sold
(12,100) $236,250
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Beginning balance
Additions to inventory
Ending balance
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Finished Goods
Period Costs
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Beginning raw materials inventory was $32,000. During the month, $276,000 of raw material was purchased. A count at the end of the month revealed that $28,000 of raw material was still present. What is the cost of direct material used?
A. B. C. D.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Beginning raw materials inventory was $32,000. During the month, $276,000 of raw material was purchased. A count at the end of the month revealed that $28,000 of raw material was still present. What is the cost of direct material used? Beg. raw materials $ 32,000
A. B. C. D.
+ Raw materials purchased 276,000 = Raw materials available for use in production $ 308,000 Ending raw materials inventory 28,000 = Raw materials used in production $ 280,000
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Beginning finished goods inventory was $130,000. The cost of goods manufactured for the month was $760,000. And the ending finished goods inventory was $150,000. What was the cost of goods sold for the month?
A. $ 20,000. B. $740,000. C. $780,000. D. $760,000.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Beginning finished goods inventory was $130,000. The cost of goods manufactured for the month was $760,000. And the ending finished goods inventory was $150,000. What was the cost of goods sold for the month?
A. $ 20,000. $130,000 + $760,000 = $890,000 B. $740,000. $890,000 - $150,000 = $740,000 C. $780,000. D. $760,000.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Total variable costs change when activity changes. Total fixed costs remain unchanged when activity changes.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Fixed
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Which of the following costs would be variable with respect to the number of cones sold at a Baskins & Robbins shop? (There may be more than one correct answer.)
A. The cost of lighting the store. B. The wages of the store manager. C. The cost of ice cream. D. The cost of napkins for customers.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Which of the following costs would be variable with respect to the number of cones sold at a Baskins & Robbins shop? (There may be more than one correct answer.)
A. The cost of lighting the store. B. The wages of the store manager. C. The cost of ice cream. D. The cost of napkins for customers.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Every decision involves a choice between at least two alternatives. Only those costs and benefits that differ between alternatives are relevant in a decision. All other costs and benefits can and should be ignored.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Opportunity Cost
The potential benefit that is given up when one alternative is selected over another. Example: If you were not attending college, you could be earning $15,000 per year. Your opportunity cost of attending college for one year is $15,000.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Sunk Costs
Sunk costs have already been incurred and cannot be changed now or in the future. They should be ignored when making decisions. Example: You bought an automobile that cost $10,000 two years ago. The $10,000 cost is sunk because whether you drive it, park it, trade it, or sell it, you cannot change the $10,000 cost.
Saga
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Suppose you are trying to decide whether to drive or take the train to Ipoh to attend a concert. You have ample cash to do either, but you dont want to waste money needlessly. Is the cost of the train ticket relevant in this decision? In other words, should the cost of the train ticket affect the decision of whether you drive or take the train to Ipoh? A. Yes, the cost of the train ticket is relevant. B. No, the cost of the train ticket is not relevant.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Suppose you are trying to decide whether to drive or take the train to Ipoh to attend a concert. You have ample cash to do either, but you dont want to waste money needlessly. Is the cost of the train ticket relevant in this decision? In other words, should the cost of the train ticket affect the decision of whether you drive or take the train to Ipoh? A. Yes, the cost of the train ticket is relevant. B. No, the cost of the train ticket is not relevant.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Suppose you are trying to decide whether to drive or take the train to Ipoh to attend a concert. You have ample cash to do either, but you dont want to waste money needlessly. Is the annual cost of licensing your car relevant in this decision? A. Yes, the licensing cost is relevant. B. No, the licensing cost is not relevant.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Suppose you are trying to decide whether to drive or take the train to Ipoh to attend a concert. You have ample cash to do either, but you dont want to waste money needlessly. Is the annual cost of licensing your car relevant in this decision? A. Yes, the licensing cost is relevant. B. No, the licensing cost is not relevant.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Suppose that your car could be sold now for $5,000. Is this a sunk cost? A. Yes, it is a sunk cost. B. No, it is not a sunk cost.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Suppose that your car could be sold now for $5,000. Is this a sunk cost? A. Yes, it is a sunk cost. B. No, it is not a sunk cost.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Idle Time
Machine Breakdowns Material Shortages
Power Failures
The labor costs incurred during idle time are ordinarily treated as manufacturing overhead.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
OVERTIME
The overtime premiums for all factory workers are usually considered to be part of manufacturing overhead.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Other companies treat fringe benefit expenses of direct laborers as additional direct labor costs.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Quality Of Conformance
When the overwhelming majority of products produced conform to design specifications and are free from defects.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Appraisal Costs
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Appraisal Costs
Testing & inspecting incoming materials Final product testing Depreciation of testing equipment
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Companies reduce their total quality costs by focusing their efforts on prevention and appraisal because the cost savings from reduced defects usually overwhelm the costs of additional prevention and appraisal.
Total quality costs are minimized when the quality of conformance is slightly less than 100%.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Help managers see whether their quality costs are poorly distributed.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
Results usually lag behind quality improvement programs. The most important quality cost, lost sales, is often omitted from quality cost reports.
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FACULTY OF BUSINESS
Nurturing professionals with high moral and ethical values
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