Five key factors that affect the budgeting process: Demand:the annual demand or any relevant period‟s demand must be estimatedfirst before the purchases, production and expenses budgets can be Plant capacity: Is a critical factor especially in small firms in high Read More …
Category: Cost accounting notes
A responsibility centre is part of an organization for whose activities a manager is deemed to be responsible. The type of responsibility centre depends on the type of activities for which responsibility is carried.

Cost Centre A cost centre or expense centre can be defined as a responsibility centre where a manager is accountable only for costs which are under his control. It is a production or service location for which costs can be Read More …
Answers to exam & review questions

Cost accounting is utilized for a number of purposes, some of which are briefly described in the following points: a) Accounting for costs This may be seen as a record keeping or score keeping role. Information must be gathered and Read More …
Chapter quiz on cost management and answers

1. What is a value chain? 2. List the six main business functions of a value chain. 3. State eight issues that should be addressed a value chain research methodology. ANSWER 1. A value chain is a chain of Read More …
Chapter summary on cost management

This chapter mainly focuses on the technological trends and impact of the change on cost management. The main subtopics covered in here include: Value chain research and development design production, marketing – distribution and customer care. This focuses on the Read More …
Use of computers in costing

As the world is turning electronic, companies have no option other than to adapt to the technology. Such adoption enhances not only efficiencies but also controls. Computers have been widely used in costing. Many manufacturers use accounting software customized to Read More …
Material resource planning

Proper management of materials makes production tasks go more quickly. When employees are able to look up the status of all necessary materials at any given time, they can more accurately plan and execute daily manufacturing activities. The use of Read More …
Advanced manufacturing technology (amt)

Rapidly changing needs for materials and innovative manufacturing systems are creating new opportunities for small business and industry in today’s global marketplace. For a country to become competitive, grow existing and develop new industries, an initiative on advanced manufacturing is Read More …
Just in time inventory system

This concept advocates zero inventory and stockless production through just-in-time purchasing and just-in-time production. Organizations create a closer relationship with the suppliers and arrange for more frequent deliveries of small quantities. The objective of just-in-time purchasing is to purchase goods Read More …
Value chains, innovation and upgrading

Different types of upgrading • Process upgrading: increasing the efficiency of internal processes such that they are significantly better than those of rivals, both within individual links in the chain, and between the links in the chain. • Product upgrading: Read More …