Download e-book for kindle: CIMA Official Learning System Performance Operations, Sixth by Robert Scarlett

By Robert Scarlett

ISBN-10: 185617722X

ISBN-13: 9781856177221

CIMA professional studying platforms are the one textbooks instructed through CIMA as center analyzing. Written via the CIMA examiners, markers and academics, they in particular organize scholars to cross the CIMA tests first time. totally up-to-date to mirror the 2010 syllabus, they're filled with positive aspects to enhance studying, together with: - step-by-step insurance without delay associated with CIMA's studying results - absolutely revised examples and case reviews - broad query perform to check wisdom and figuring out - built-in readings to extend realizing of key idea - color used all through to assist navigation * The legitimate studying platforms are the one research fabrics counseled via CIMA * Key sections written by means of former examiners for the main exact, up to date counsel in the direction of examination good fortune * whole built-in package deal incorporating syllabus information, complete textual content, suggested articles, revision publications and wide query perform

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Additional info for CIMA Official Learning System Performance Operations, Sixth Edition

Example text

This is a new post to be created specially for the new product but the £12,000 salary will be a fixed cost. Is this cost relevant to the decision to proceed with the development of the product? (b) The £2,500 additional monthly running costs of a new machine to be purchased to manufacture an established product. Since the new machine will save on labour time, the fixed overhead to be absorbed by the product will reduce by £100 per month. Are these costs relevant to the decision to purchase the new machine?

Knowing how much it costs the business to deliver a good or service to customers can act as a guide to various aspects of business management including product pricing, output and marketing decisions, management remuneration and inventory holding decisions. It also impacts on the inventory valuation decision in the context of external financial reporting. For the purposes of product costing, costs are traditionally classified under two broad headings. These are direct costs and indirect costs. 1 Direct costs Direct cost – Expenditure that can be attributed to a specific cost unit, for example material that forms part of the product.

BASIC ASPECTS OF MANAGEMENT ACCOUNTING included as a saving to be made next month. However, it will be saved in the months after that so it will become a relevant cost saving from month 2 onwards. (d) This is not a relevant cost of the decision to continue with the contract. The £75 is sunk and cannot be recovered even if the company does not proceed with the negotiations. 16 Avoidable, differential and incremental costs There are two other types of relevant cost that you will need to know about: avoidable costs and differential/incremental costs.

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CIMA Official Learning System Performance Operations, Sixth Edition by Robert Scarlett


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