F2

Front 1

Data

Back 1

Raw material for data processing. Relates to facts events and transactions

Front 2

Information

Back 2

processed data. Meaningful to user

Front 3

Characteristics of good quality information

Back 3

Accurate

Relevant

Complete

Clear

Costs

Communication

Channel of communication

Volume

Timely

Confidence

Front 4

How to assess value of information

Back 4

what is info

Who uses it

Frequency with which needed compared to frequency with which it is produced

What is being achieved by using it

Alternate information

Front 5

Types of info needed

Back 5

Financial

Non financial

Both

Front 6

Planning

Back 6

establishing objectives and strategies to reach them

Front 7

Objectives

Back 7

Goals of org

Front 8

Strategy

Back 8

Course of actions enabling achievement of objectives

Front 9

Two schools of thought on org structure

Back 9

Structure follows strategy

Strategy follows structure

Front 10

Long term strategic planning function

Back 10

Selecting appropriate strategies to prepare a long term plan to attain objectives

Front 11

Corporate plan

Back 11

Result of strategic planning

Front 12

Control

Back 12

Plan compared with actual achievement. Corrective action taken if necessary

Front 13

Strategic planning what it does

Back 13

Sets or changes objectives and strategic targets

Front 14

Tactical/ management control

Back 14

Decisions about efficient and effective use of org resources

Front 15

Operational control

Back 15

Ensuring specific tasks are carried out

Front 16

Resources

Back 16

Men

Materials

Machines

Money

Front 17

Efficiency

Back 17

Optimum ratio of output to input

Front 18

Effectiveness

Back 18

Output obtained in line with objectives

Front 19

management control system

Back 19

Measures and corrects performance of activities of subordinates

Front 20

Features of strategic information

Back 20

Long term

Quantitative and qualitative

Relates to whole org

Derived from internal and external sources

Uncertain

Prepared on ad hoc basis

Front 21

Features of tactical information

Back 21

Generated internally

Short and medium term

Quantitative

Analyses activities or departments

Routinely produced

Front 22

Features of operational data

Back 22

Internally sourced

Highly detailed

Task specific

Produced constantly

Front 23

Features of financial accounting

Back 23

External

Historic

Produced each accounting period by law

Format governed by law

Monetary and quantitative

Relate to whole org

Front 24

Features of management accounting

Back 24

Not required by law

Any format

Quantitative and qualitative

Can focus on specific areas of org

Future as well as past

For internal users

Front 25

Cost accounting is concerned with

Back 25

Collecting cost data

Applying costs to inventory, profits and services

Preparing statements

Front 26

Management accounting

Back 26

Using financial data and communicating it as information to users

Front 27

Uses of cost accounts

Back 27

Cost of goods or services

Cost of department or service station

Costing inventories

Revenues

Profitability

selling price

Budgeting

Variance analysis

Corrective action

Front 28

Cost accounting information is unsuitable for

Back 28

Decision making

Front 29

Primary data

Back 29

collected for that specific purpose

Front 30

Secondary data

Back 30

collected for some other purpose

Front 31

Discrete variables

Back 31

countable number

Front 32

Continuous variables

Back 32

any value

Front 33

Sampling data

Back 33

Arises as a result of investigating a sample

Front 34

Sample

Back 34

Proportion of population under observation

Front 35

Population data

Back 35

are data arising as a result of investigating the population.

Front 36

A population

Back 36

is the group of people or objects of interest to the data collector.

Front 37

Quantitative

Back 37

Variables can be measured

Front 38

Qualitative

Back 38

attributes that cannot be measured

Front 39

Primary source of data

Back 39

As close to origin as you can get

Front 40

Secondary source of data

Back 40

Second hand

Front 41

Secondary data

Back 41

Collected for some other purpose

Front 42

Primary data

Back 42

Collected for that purpose

Front 43

Disadvantages of a census

Back 43

Costly

Maybe out of date when completed

Front 44

Advantages of survey

Back 44

Accuracy increases faster than size

Ask more question

Front 45

Probability sampling

Back 45

Known chance of each member of the population appearing in the sample.

Front 46

Probability sampling methods examples

Back 46

(a) Random sampling

(b) Stratified random sampling

(c) Systematic sampling

(d) Multistage sampling

(e) Cluster sampling

Front 47

sampling frame

Back 47

numbered list of all items in a population.

Front 48

Quota sampling

Back 48

interview all the people they meet up to a certain number. Non probability

Front 49

Cluster sampling

Back 49

selecting one definable subsection of the population as the sample

Front 50

Multi stage sampling

Back 50

Population split into sub populations and random sample selected as many times as possible

Front 51

Systematic sampling

Back 51

works by selecting every nth item after a random start.

Front 52

Stratified random sampling

Back 52

Random samples are then taken from each stratum or category.

Front 53

simple random sample

Back 53

every item in the population has an equal chance of being included.

Front 54

direct cost

Back 54

can be traced in full to the product, service or department that is being costed.

Front 55

Indirect cost (or overhead)

Back 55

incurred in the course of making a product, providing a service or running a department, but which cannot be traced directly and in full to the product, service or department.

Front 56

Direct material costs

Back 56

costs of materials that are known to have been used in making and selling a product (or even providing a service).

Front 57

Direct labour costs

Back 57

Time taken in direct production work

Front 58

direct expenses

Back 58

Expenses incurred in full as a direct consequence of making a product, or providing a service, or running a department.

Front 59

Indirect materials

Back 59

which cannot be traced in the finished product.

Front 60

Indirect wages,

Back 60

meaning all wages not charged directly to a product.

Front 61

Indirect expenses

Back 61

(other than material and labour) not charged directly to production.

Front 62

Administration overhead

Back 62

all indirect costs incurred in the direction, control and administration of an undertaking.

Front 63

Selling overhead

Back 63

all indirect costs incurred in promoting sales and retaining customers.

Front 64

Distribution overhead

Back 64

all indirect costs incurred in making the packed product ready for despatch and delivering it to the customer.

Front 65

Classification by function

Back 65

involves classifying costs as production/manufacturing costs, administration costs or marketing/selling and distribution costs.

Front 66

Production or manufacturing costs.

Back 66

These are costs associated with the factory.

Front 67

Administration costs.

Back 67

These are costs associated with general office departments.

Front 68

Marketing, or selling and distribution costs.

Back 68

These are costs associated with sales, marketing, warehousing and transport departments.

Front 69

Fixed costs

Back 69

Remain unchanged by activity levels in short term

Front 70

variable cost

Back 70

Varies with level of activity

Front 71

Production costs are

Back 71

all direct costs involved in the manufacture of goods.

Front 72

Non-production costs

Back 72

are taken directly to the statement of profit or loss as expenses such costs consist of selling and administrative expenses.

Front 73

Subjective classification

Back 73

The nature of the cost ( materials, labour, overhead )

The type of cost (direct, indirect and so on)

Front 74

Objective classification

Back 74

The cost centre to which the cost should be allocated or cost unit which should be charged

Front 75

Features of a good coding system

Back 75

Easy to use / communicate

Short

Unique code

Allow for expansion

Flexible

human interest should dominate.

Errors

Reference

Issued from central point

Reviewed regularly

either entirely numeric or entirely alphabetic

Uniform

Significant

Mnemonics

Front 76

Composite codes

Back 76

First digits are subjective classification and last few are objective classification

Front 77

Sequence (or progressive) codes

Back 77

Numbers are given to items in ordinary numerical sequence, so that there is no obvious connection between an item and its code.

Front 78

Group classification codes

Back 78

A digit identifies the classification of an item

Front 79

Faceted code

Back 79

each digit of the code gives information about an item.

Front 80

Significant digit codes

Back 80

These incorporate some digit(s) which is/are part of the description of the item being coded

Front 81

Hierarchical codes

Back 81

This is a type of faceted code where each digit represents a classification, and each digit further to the right represents a smaller subset than those to the left

Front 82

Cost centres

Back 82

are collecting places for costs before they are further analysed. Costs are further analysed into cost units once they have been traced to cost centres.

Front 83

A cost unit

Back 83

is a unit of product or service to which costs can be related. basic control unit for costing purposes

Front 84

A cost object

Back 84

is any activity for which a separate measurement of costs is desired.

Front 85

Profit centres

Back 85

accountable for both costs and revenues.

Front 86

Revenue centres

Back 86

are accountable for revenues only. managers should normally have control over how revenues are raised.

Front 87

An investment centre

Back 87

is a profit centre with additional responsibilities for capital investment and possibly for financing, and whose performance is measured by its return on investment. Roce calculated

Front 88

A responsibility centre

Back 88

is a department or organisational function whose performance is the direct responsibility of a specific manager.

Front 89

Cost behaviour

Back 89

is the way in which costs are affected by changes in the volume of output.

Front 90

A fixed cost behaviour

Back 90

is a cost which tends to be unaffected by increases or decreases in the volume of output.

Front 91

A step cost

Back 91

is a cost which is fixed in nature but only within certain levels of activity.

Front 92

A variable cost

Back 92

is a cost which tends to vary directly with the volume of output. The variable cost per unit is the same amount for each unit produced.

Front 93

curvilinear

Back 93

the relationship between total variable cost and volume of output can be shown as a curved line on a graph, the relationship is said to be .

Front 94

A semi-variable/semi-fixed/mixed cost

Back 94

is a cost which contains both fixed and variable components and so is partly affected by changes in the level of activity.

Front 95

Information in reports should be

Back 95

Unbiased and timely

Front 96

terms of reference

Back 96

purpose of the report and any restrictions on its scope

Front 97

Procedure/ method

Back 97

How investigation was made, data collected

Front 98

Short formal report structure

Back 98

Title

Identification of report writer, report user and date

Terms of reference

Procedure/ method

Findings

Conclusions

Recommendations

Front 99

memorandum may be used for

Back 99

flexible, informal reports

Front 100

Guidelines for tabulation

Back 100

(a) The table should be given a clear title.

(b) All columns should be clearly labelled.

(c) Where appropriate, there should be clear subtotals.

(d) A total column may be presented (usually the right-hand column). (e) A total figure is often advisable at the bottom of each column of figures.

(f) Information presented should be easy to read.

Front 101

Bar charts often convey

Back 101

the meaning or significance of data more clearly than would a table.

Front 102

main types of bar chart:

Back 102

simple, component (including percentage component) and multiple (or compound).

Front 103

Bar chart

Back 103

method of presenting information in which quantities are shown in the form of bars on a chart, the length of the bars being proportional to the quantities.

Front 104

Multiple bar charts are used when

Back 104

comparative magnitudes of the components

do not show the grand total

Front 105

pie chart

Back 105

is a chart which is used to show pictorially the relative size of component elements of a total.

Front 106

Advantages of pie charts

Back 106

Simple pictorial display

Clear when one element is much bigger than others.

show differences in the elements of two different totals.

Front 107

Disadvantages of pie charts

Back 107

They only show the relative sizes of elements

Not easy to compare sectors

Conversion to degrees tedious

Front 108

Scatter diagrams

Back 108

are graphs which are used to exhibit data (rather than equations) in order to compare the way in which two variables vary with each other.