Management Information MA1

1. Management InformationMA1 Ibrahim Hameem (CIMA exam complete, ACCA professional level student, Diploma in Economics (distinction) , Third year undergraduate reading for BSc. Mathematics and Economics (university of London)

2. ACCA – Management Information Process costing – Key terms

3. ACCA – Management Information Process costing – Key terms

4. ACCA – Management Information Example

5. ACCA – Management Information Cases to be discussed

6. ACCA – Management Information Steps in process costing Draw the process, identifying normal losses and abnormal losses. Debit all cost items of the process Credit all normal losses at its scrap sales value Credit finished goods, abnormal losses or gains using the following cost per unit formulae Cost per unit =

7. ACCA – Management Information Case 1 Input 500 Process Output 500

8. ACCA – Management Information Process account

9. ACCA – Management Information Question 01

10. ACCA – Management Information Case 2 Input 500 Process Output 450 + Normal loss 50

11. ACCA – Management Information Process account Cost per unit = 10,000 – 0 / 450 = 22.222

12. ACCA – Management Information Case 3 Input 500 Process Output 450 + Normal loss 50

13. ACCA – Management Information Process account Cost per unit = 10,000 – 250/ 450 = 21.667

14. ACCA – Management Information Case 4 Input 500 Process Output 430 + Normal loss 50 + Abnormal loss 20

15. ACCA – Management Information Process account

16. ACCA – Management Information Question 02

17. Management InformationMA1 Ibrahim Hameem (CIMA exam complete, ACCA professional level student, Diploma in Economics (distinction) , Third year undergraduate reading for BSc. Mathematics and Economics (university of London)

18. ACCA – Management Information Process costing – double entry All the cost items which are debited in the process account will be credited to the payables account or the bank account. The normal loss will be debited in an account called the scrap sales account

19. ACCA – Management Information Process costing – double entry The finished goods will be debited into a finished goods account The abnormal loss will be debited in the abnormal loss account It must be noted that if the abnormal loss can be scrapped for a given amount then the abnormal loss in the process account is not the true abnormal loss.

20. ACCA – Management Information Case 5 Input 500 Process Output 430 + Normal loss 50 + Abnormal loss 20

21. ACCA – Management Information Process account Cost per unit = 10,000 – 250 / 450 = 21.667

22. ACCA – Management Information Illustrations

23. ACCA – Management Information Illustration

24. ACCA – Management Information Question 01

25. ACCA – Management Information The concept of partially complete units As explained above, in process costing discrete batches are not produced and instead costs and output are measured for periods. This can mean that at the end of the period some items are not completed and remain partially finished in work-in-progress. Costs will have gone into both completed units and the work-in-progress and therefore have to be averaged over all of those units. To account for partially completed units, the concept of equivalent units is used.

26. ACCA – Management Information Steps Statement of equivalent units Statement of cost per unit Statement of valuation

27. ACCA – Management Information Illustration

28. ACCA – Management Information Input P-1 400 Direct material 3000 Process Output 2800 + Normal loss 300 + Abnormal loss 100 +C –WIP 200

29. Process account ACCA – Management Information Cost per unit = 10,000 – 250 / 450 = 21.667

30. ACCA – Management Information Statement of equivalent units

31. ACCA – Management Information Statement of cost per unit

32. ACCA – Management Information Statement of cost per unit

33. ACCA – Management Information Statement of valuation – finished goods

34. ACCA – Management Information Question 02

35. Management InformationMA1 Ibrahim Hameem (CIMA exam complete, ACCA professional level student, Diploma in Economics (distinction) , Third year undergraduate reading for BSc. Mathematics and Economics (university of London)

36. ACCA – Management Information Illustration

37. ACCA – Management Information The principles and practice of double-entry bookkeeping The basic principle of double entry bookkeeping is that there are always two entries for every transaction. One entry is known as a credit entry and the other a debit entry.

38. ACCA – Management Information Examples

39. ACCA – Management Information Examples

40. ACCA – Management Information Question 01

41. ACCA – Management Information The use of ledgers and prime entry records in both integrated and interlocking accounting systems

42. ACCA – Management Information The use of ledgers and prime entry records in both integrated and interlocking accounting systems

43. ACCA – Management Information Prime entry books

47. ACCA – Management Information

48. ACCA – Management Information Question 02 What are the advantages of using a computerized accounting system? • faster provision of information • provision of information that would not be easily available without a computerized accounting system • once the system is set up, cheaper information • more accurate information because arithmetic and certain other errors will be eliminated.

49. Management InformationMA1 Ibrahim Hameem (CIMA exam complete, ACCA professional level student, Diploma in Economics (distinction) , Third year undergraduate reading for BSc. Mathematics and Economics (university of London)