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5 Cards in this Set
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Cost accounting definition
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management information system which analyses past, present and future data to provide the basis for managerial action' CIMA, 2009.
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Cost accounting key functions
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Planning - allocating resources efficiently.
Controlling - controlling costs in different divisions Decision making - whether to adjust prices, to increase level of service provision and to make or buy new product |
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cost accounting benefits
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-flexible - use tools that best fit organisation and its circumstances
-Unstructured - the organisation can tailor it to fit needs -no law, legislation or ruled that governs reporting data (Unlike financial accounting) -Increasingly competitive/expanding market, cost accounting necessary for competitive advantage -Survial! -allows price setting to be informed to aid profit maximisation |
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cost information mangers require
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1. costs incurred and controlled by departments
2. costs related to different products/services 3. costs related to actual quantities |
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Operations involving money
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-applying for funding from governing bodies
-managing membership subscriptions for local sport club -increase profit margins private operation |