A. Economic evaluation of a production process
|
|
- Geraldine Harper
- 8 years ago
- Views:
Transcription
1 A. Economic evaluation of a production process Revenue Cost items B. Evaluation of investments 1 Cost of individual equipment C. Evaluation of investments 2 Cost structure for building a new plant The factor method Reliability of estimates D. Profitability analysis The time value of money Comparing investment policies 1 Goal : record expenses and revenues Allocate them to each step in the operation Obtain figures to assess the economic efficiency of the operation Use normalized procedures to allow comparison of different processes Also allow comparison at different periods of time or different locations 2
2 Difference (hopefully positive) between + Money obtained by selling products - All costs needed to provide the product raw materials, energy salary manufacturing packaging, transportation etc. Some costs are fixed Some costs vary with production (linearly?) 3 Indirect plant cost 15% Investment costs 5%» Depreciation 5-1% of fixed investment» Insurance 1% of fixed investment» Interest on inventories» Taxes Overhead 1%» Technical (engineering)» Non technical (office, plant protection, etc)» Supplies» Rental of equipment, building, etc 4
3 Management expenses 5% Executives Legal ervice Technical research Market research Selling and distribution expenses 1-2% Cost of selling Packaging Warehouse cost Delivery Technical service (after sale) 3-5% Fixed costs : typically 3 to 4% of total expenses 5 Raw materials Other consumables catalyst make up solvent Direct labor (operators and helpers) (include social security, pension fund, vacations, benefits) Process utilities steam electricity cooling water refrigeration compressed air 6
4 Maintenance 4-6% of fixed plant investment labor materials Small supplies,5% of fixed plant Direct supervision (foremen) 1% of direct labor Laboratory, process control Royalties (licenses for using patented processes) Packaging and storage 5% of raw mat.+ labor Spoilage, other losses 1-2% of raw materials Credit for by-products (not a cost) Variable costs : typically 6 to 7% of total expenses 7! /t % sales revenue revenue from annual sales 5, 1,% raw materials , 44,2% catalysts and solvents ,4 3,4% operating labor , 5,1% operating supervision 5 1, 1,% utilities 55 11, 1,1% operating maintenance 53 1,6 1,1% operating supplies 2,,2% royalties and patents 25 5,,5% direct manuf. expense , 56,6% Payroll overhead 7 14, 1,4% central laboratory 25 5,,5% general plant overhead 13 26, 2,6% packaging and storage 55 11, 1,1% property taxes 35 7,,7% insurance 15 3,,3% indirect manuf.expense 33 66, 6,6% 8
5 " # /t % sales revenue revenue from annual sales 5, 1,% direct manuf. expense , 56,6% indirect manuf.expense 33 66, 6,6% total manuf. expense , 63,2% excluding depreciation depreciation 17 34, 3,4% administration , 3,7% sales and shipping 3 62, 6,2% advertising and marketing 2, 2,% technical service 25 5,,5% research and development 15 3, 3,% total overheads , 15,4% total cost or expense 4 82, 82, % net annual profit 9 18, 18,% less 5,% -45-9, -9,% net profit after tax 45 9, 9,% 9 $ Cash flow corresponds to the positive net income resulting from operation, money available for new ventures or for capital retribution Cash flow = Net profit (after tax) + variation of investment value CF = S - C - F - I - (S - C - F - D) t = (S - C - F - D) (1-t) + (D - I)» S : sales revenue» C : operating expenses» F : financial charges Cost of operation» D : depreciation allowance» I : new investments» t : taxation rate 1
6 %! Basic relationships Z = ns - (nv+f) = n (S-v) - F» Z : gross profit (ECU)» n : production rate (t/yr)» S : net sales price (ECU/t)» V : variable cost (ECU/t)» F : annual fixed cost (ECU) Assuming no interest charge Y = Z (1-t) for Z>» Y : net profit, after tax (ECU)» t : average tax rate 11 % kecu/yr Break-even point Net sales ns Cost of sales nv + F 3 25 Variable cost nv Fixed cost F Gross profit Z Net profit Y Capacity % 12
7 % "& # ECU/t 8 Net sales Cost of sales 6 Variable cost 4 2 Break-even point Fixed cost Gross profit Net profit 13 '! fixed variable 3 cost of sales net sales Gross profit 2 Net profit
8 ( )*! 8 fixed variable 6 cost of sales net sales 4 Gross profit 2 Net profit fixed variable cost of sales net sales Gross profit Net profit 16
9 Application 1. The annual fixed costs for a plant are 1,. The variable costs are 14, at 7 % capacity with net sales of 28,. What is the break-even point in units of production if the selling price per unit is 4? 17 To build and operate a production facility, money is needed in the for of capital. Fixed capital pays for the facilities, machines, etc. Working capital pays for the expenses involved in the operation of the plant Since industrial operation involves a risk of failure, the retribution of capital is normally higher than for less risky operations (e.g. bank deposits) Succesfull operation can both benefit to the capital owner in the form of dividend or in the form of increase of the value of the shares. 18
10 Manufacturing fixed-capital investment installed process equipment auxiliaries piping, instruments, etc site preparation, foundations Nonmanufactu ring fixed-capital investment. construction overhead land buildings, warehouses, laboratories, transportatiom, shipping, and receiving facilities utility and waste-disposal facilities construction overhead» supervision expenses» engineering expenses» contractor's fees, and contingencies 19, - Stock of raw materials Supplies needed for production (solvents, catalysts) Finished products in stock Semifinished products in the manufacturing process Accounts receivable Cash kept for payment of salaries, raw-material, etc. Taxes payable. Order of magnitude : 15-2% of fixed capital 2
The Basic Framework of Budgeting
Master Budgeting 1 The Basic Framework of Budgeting A budget is a detailed quantitative plan for acquiring and using financial and other resources over a specified forthcoming time period. 1. The act of
More informationMultiple Choice Questions (45%)
Multiple Choice Questions (45%) Choose the Correct Answer 1. The following information was taken from XYZ Company s accounting records for the year ended December 31, 2014: Increase in raw materials inventory
More informationConsolidated Balance Sheets
Consolidated Balance Sheets March 31 2015 2014 2015 Assets: Current assets Cash and cash equivalents 726,888 604,571 $ 6,057,400 Marketable securities 19,033 16,635 158,608 Notes and accounts receivable:
More informationFinancial Statements Tutorial
Financial Statement Review: Financial Statements Tutorial There are four major financial statements used to communicate information to external users (creditors, investors, suppliers, etc.) - 1. Balance
More informationAGENDA: JOB-ORDER COSTING
TM 3-1 AGENDA: JOB-ORDER COSTING A. The documents in a job-order costing system. 1. Materials requisition form. 2. Direct labor time ticket. 3. Job cost sheet. B. Applying overhead using a predetermined
More informationThe Statement of Cash Flows Direct Method
23 The Statement of Cash Flows Direct Method DEMONSTRATION PROBLEM The financial statements of Bolero Corporation follow. Copyright Houghton Mifflin Company. All rights reserved. 1 Bolero Corporation Income
More informationCASH FLOW STATEMENT. MODULE - 6A Analysis of Financial Statements. Cash Flow Statement. Notes
MODULE - 6A Cash Flow Statement 30 CASH FLOW STATEMENT In the previous lesson, you have learnt various types of analysis of financial statements and its tools such as comparative statements, common size
More informationAccount Numbering. By separating each account by several numbers, many new accounts can be added between any two while maintaining the logical order.
Chart of Accounts The chart of accounts is a listing of all the accounts in the general ledger, each account accompanied by a reference number. To set up a chart of accounts, one first needs to define
More informationGROUP 1. BASIC FINANCING. 10. CAPITAL 100. Capital stock 103. Uncalled subscribed capital receivable 108. Treasury stock
GROUP 1. BASIC FINANCING 10. CAPITAL 100. Capital stock 103. Uncalled subscribed capital receivable 108. Treasury stock 11. RESERVES AND OTHER EQUITY INSTRUMENTS 110. Additional paid-in capital 111. Other
More information2-8. Identify whether each of the following items increases or decreases cash flow:
Problems 2-8. Identify whether each of the following items increases or decreases cash flow: Increase in accounts receivable Increase in notes payable Depreciation expense Increase in investments Decrease
More informationCash Flow Forecasting & Break-Even Analysis
Cash Flow Forecasting & Break-Even Analysis 1. Cash Flow Cash Flow Projections What is cash flow? Cash flow is an estimate of the timing of when the cash associated with sales will be received and when
More informationSummary of Financial Report for the FY ending March 2015 (Non-Consolidated)
Summary of Financial Report for the FY ending March 2015 (Non-Consolidated) April 30, 2015 Listed Company Name: Japan Tissue Engineering Co., Ltd. Listed Securities Exchange: JQ Stock Code: 7774 URL http://www.jpte.co.jp
More informationGENERAL PROCESS PLANT COST ESTIMATING (ENGINEERING DESIGN GUIDELINE)
Page : 1 of 119 Rev 01 Guidelines for Processing Plant www.klmtechgroup.com Rev 01 KLM Technology #03-12 Block Aronia, Jalan Sri Perkasa 2 Taman Tampoi Utama 81200 Johor Bahru Malaysia (ENGINEERING DESIGN
More informationPlant economics. Davide Manca. Lesson 8 of Process Systems Engineering Master Degree in Chemical Engineering Politecnico di Milano
Plant economics Davide Manca Lesson 8 of Process Systems Engineering Master Degree in Chemical Engineering Politecnico di Milano L8 Capital To build and run a chemical/industrial plant it is necessary
More informationHow To Analyze A Power Plant
17.8 PROFITABILITY ANALYSIS SPREADSHEET This section shows how to use purchase and installation cost estimates from Aspen IPE, and other sources, together with an economics spreadsheet by Holger Nickisch
More informationLesson-13. Elements of Cost and Cost Sheet
Lesson-13 Elements of Cost and Cost Sheet Learning Objectives To understand the elements of cost To classify overheads on different bases To prepare a cost sheet Elements of Cost Raw materials are converted
More informationComprehensive Business Budgeting
Management Accounting 137 Comprehensive Business Budgeting Goals and Objectives Profit planning, commonly called master budgeting or comprehensive business budgeting, is one of the more important techniques
More informationFinancial Statements
Financial Statements The financial information forms the basis of financial planning, analysis & decision making for an organization or an individual. Financial information is needed to predict, compare
More informationRatio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability
A) Liquidity Ratio : - Ratio Analysis 1) Current ratio = Current asset Current Liability 2) Quick ratio or Acid Test ratio = Quick Asset Quick liability Quick Asset = Current Asset Stock Quick Liability
More informationSTATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION. BALANCE SHEET As of
STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BALANCE SHEET As of ASSETS CURRENT ASSETS Cash and Cash Equivalents Cash - Restricted Accounts Receivable - Trade Accounts Receivable
More informationHow To Balance Sheet
Page 1 of 6 Balance Sheet Accounts The Chart of Accounts is normally arranged or grouped by the Major Types of Accounts. The Balance Sheet Accounts (Assets, Liabilities, & Equity) are presented first,
More informationChapter 9 E-Commerce: Digital Markets, Digital Goods
1 Chapter 9 E-Commerce: Digital Markets, Digital Goods LEARNING TRACK #: 2: BUILD BUSINESS PLAN There are lots of different ways to lay out a business plan. The sample
More informationRAPID REVIEW Chapter Content
RAPID REVIEW BASIC ACCOUNTING EQUATION (Chapter 2) INVENTORY (Chapters 5 and 6) Basic Equation Assets Owner s Equity Expanded Owner s Owner s Assets Equation = Liabilities Capital Drawing Revenues Debit
More informationFYI For Your Information
TAXPAYER SERVICE DIVISION FYI For Your Information Apportionment of Income C CORPORATIONS A C Corporation doing business only in Colorado will compute its tax on 100% of the Colorado taxable income. However,
More informationWorking Capital Concept & Animation
Working Capital Concept & Animation Meaning A measure of both a company's efficiency and its short-term financial health. The working capital is calculated as: Working Capital = Current Assets Current
More informationExercise 17-1 (15 minutes)
Exercise 17-1 (15 minutes) 1. 2002 2001 Sales... 100.0% 100.0 % Less cost of goods sold... 63.2 60.0 Gross margin... 36.8 40.0 Selling expenses... 18.0 17.5 Administrative expenses... 13.6 14.6 Total expenses...
More informationCHAPTER 12. Cost Sheet ( or) Statement of Cost ELEMENTS OF COST
CHAPTER 12 Cost Sheet ( or) Statement of Cost Introduction ELEMENTS OF COST Elements of cost are necessary to have a proper classification and analysis of total cost. Thus, elements of cost provide the
More informationJones Sample Accounts Limited. Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements
Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements Period of accounts Start date: 1st June 2008 End date: 31st May 2009 Contents of the
More informationUNESCO EOLSS SAMPLE CHAPTERS PROCESS ECONOMICS. C. R. Deddis BP Exploration Operating Company Ltd., UK
PROCESS ECONOMICS C. R. Deddis BP Exploration Operating Company Ltd., UK Keywords: Chemical Engineering, process plant, economic evaluation, projects, net present value, internal rate of return, payback,
More informationSchedule to Regulation PR No. 30/53
Schedule to Regulation PR No. 30/53 Rules for the Determination of Cost Prices Contents Page I. General 5 1. Scope 5 2. Contractor's Accounting System 5 3. Declaration by the Contractor 5 II. Determination
More informationACCOUNTING COMPETENCY EXAM SAMPLE EXAM. 2. The financial statement or statements that pertain to a stated period of time is (are) the:
ACCOUNTING COMPETENCY EXAM SAMPLE EXAM 1. The accounting process does not include: a. interpreting d. observing b. reporting e. classifying c. purchasing 2. The financial statement or statements that pertain
More informationHouse Published on www.jps-dir.com
I. Cost - Volume - Profit (Break - Even) Analysis A. Definitions 1. Cost - Volume - Profit (CVP) Analysis: is a means of predicting the relationships among revenues, variable costs, and fixed costs at
More informationn System Design Job Order Costing n What is Product Costing n Types of Product Costing n When and how to use Job-Order Costing McGraw-Hill /Irwin
2-1 Today s Lecture Management Accounting Lecture 7 (Chapter 2) Systems Design: n System Design Job Order Costing n What is Product Costing n Types of Product Costing n When and how to use n Journal entries
More informationGENERAL LIGHTING CORPORATION Income Statement For the Year Ended December 31, 2013
Chapter 4 Exercises and Problems Exercise 4 2 Requirement 1 GENERAL LIGHTING CORPORATION Income Statement Revenues and gains: Sales... $2,350,000 Rental revenue... 80,000 Total revenues and gains... 2,430,000
More informationChart of Accounts AA Corp Tax 0000-1020 / page 1. Sales. Income from participating interests. Income from other fixed asset investments
0000-1020 / page 1 0000 Sales 0001 Sales type A 0002 Sales type B 0003 Sales type C 0004 Sales type D 0005 Sales type E 0006 Sales type F 0007 Sales type G 0008 Sales type H 0009 Sales type I 0100 UK sales
More informationACCOUNTING 105 CONCEPTS REVIEW
ACCOUNTING 105 CONCEPTS REVIEW A note from the tutors: This handout is designed to help you review important information as you study for your cumulative final exam. While it does cover many important
More informationDutchess Community College ACC 204 Managerial Accounting Quiz Prep Chapter 9
Dutchess Community College ACC 204 Managerial Accounting Quiz Prep Chapter 9 Budgetary Planning Peter Rivera March 2011 Disclaimer This Quiz Prep is provided as an outline of the key concepts from the
More informationAccounting Principles Critical to Success Presented By: C. P. Krishnan. www.cakintl.com
Accounting Principles Critical to Success Presented By: C. P. Krishnan Basic Accounting You Need to Know Assets, Liabilities, Equity, Income, & Expenses Assets Includes what you have and what people owe
More informationBALANCE SHEET. as at 20. Form: POD-BIL. Company name. Headquarters. Registration number (MBS) Personal identification number (OIB)
Form: POD-BIL Company name Headquarters Registration number (MBS) Personal identification number (OIB) Business activity code BALANCE SHEET as at 20. Pos. Position Note Amounts in HRK, no lp Previous year
More informationBasic Benchmarking Data Definitions
Basic Benchmarking Data Definitions INCOME STATEMENT Actual Values Description Revenue 2012-13 2011-12 Operating Revenue Commonwealth Subsidies State Grants Resident/Client Charges Bond Retentions (if
More informationStatement of Financial Accounting Standards No. 25. Statement of Financial Accounting Standards No.25. Business Combinations
Statement of Financial Accounting Standards No. 25 Statement of Financial Accounting Standards No.25 Business Combinations Revised on 30 November 2006 Translated by Ling-Tai Lynette Chou, Professor (National
More informationChart of Accounts for JD Edwards EnterpriseOne (Oracle Business Accelerators North America) An Oracle White Paper January 2008
Chart of Accounts for JD Edwards EnterpriseOne (Oracle Business Accelerators North America) An Oracle White Paper January 2008 PURPOSE STATEMENT THIS DOCUMENT PROVIDES AN OVERVIEW OF FEATURES AND ENHANCEMENTS
More informationClassification of Manufacturing Costs and Expenses
Management Accounting 51 Classification of Manufacturing Costs and Expenses Introduction Management accounting, as previously explained, consists primarily of planning, performance evaluation, and decision
More informationSuruhanjaya Syarikat Malaysia Taxonomy Tagging List Templates ssmt_20131231
Suruhanjaya Syarikat Malaysia Taxonomy Tagging List Templates ssmt_20131231 A view of financial and non financial elements as may be presented in set of financial statements. Content Page [010000] Filing
More information1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is known as a voucher system.
Accounting II True/False Indicate whether the sentence or statement is true or false. 1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is
More informationFinancial Statements for Manufacturing Businesses
Management Accounting 31 Financial Statements for Manufacturing Businesses Importance of Financial Statements Accounting plays a critical role in decision-making. Accounting provides the financial framework
More informationTRANSACTIONS ANALYSIS EXAMPLE. Maxwell Partners Medical Diagnostic Services report the following information for 2011, their first year of operations:
TRANSACTIONS ANALYSIS EXAMPLE Maxwell Partners Medical Diagnostic Services report the following information for 2011, their first year of operations: 1. Billings to clients for services provided: $350,000
More information1. The cost of a hard-drive installed in a computer: direct materials cost.
Brief Exercise 1-1 (15 minutes) 1. The cost of a hard-drive installed in a computer: direct materials cost. 2. The cost of advertising in the Puget Sound Computer User newspaper: selling cost. 3. The wages
More informationBasic Business Plan Outline
Basic Business Plan Outline A business plan needs to be a well thought out, honest, appraisal of the business and opportunity. This outline is meant to be used for your road map. It should be a living
More informationACCOUNTING GLOSSARY. Charities/IPCs should retain relevant documents to support their valuation.
ACCOUNTING GLOSSARY S/N Accounting Terms Explanations INCOME 1. Donations Gifts to Charities/Approved Institution of A Public Character (hereinafter referred to as IPCs) comprise donations in cash and
More informationCASH FLOW STATEMENT (AND FINANCIAL STATEMENT)
CASH FLOW STATEMENT (AND FINANCIAL STATEMENT) - At the most fundamental level, firms do two different things: (i) They generate cash (ii) They spend it. Cash is generated by selling a product, an asset
More informationB Exercises 4-1. (d) Intangible assets. (i) Paid-in capital in excess of par.
B Exercises E4-1B (Balance Sheet Classifications) Presented below are a number of balance sheet accounts of Castillo Inc. (a) Trading Securities. (h) Warehouse in Process of Construction. (b) Work in Process.
More informationConstruction Accounting and Financial Management
Debits and Credits Construction Accounting and Financial Management Chapter 3 Accounting Transactions Invoice (Materials) Charged to a Job without Retention 310 Accounts Payable-Trade (Credit) 610 Materials
More informationVariable Costs. Breakeven Analysis. Examples of Variable Costs. Variable Costs. Mixed
Breakeven Analysis Variable Vary directly in proportion to activity: Example: if sales increase by 5%, then the Variable will increase by 5% Remain the same, regardless of the activity level Mixed Combines
More informationHow To Read The Financial Results Of 20Xx And 200X
Name SAMPLE Financial Statements December 31, 20XX CPA Accounting Firm Name Table of Contents Page Accountant s Review Report 1 Financial Statements Balance Sheet 2 Income Statement 3 Schedule of General
More informationFeasibility Study Requirements. Qatar Development Bank
Feasibility Study Requirements Qatar Development Bank i. Feasibility Study Requirements The Feasibility study should ideally encompass the following areas / sections A. Executive Summary. B. Project details
More information6. Financial Planning. Break-even. Operating and Financial Leverage.
6. Financial Planning. Break-even. Operating and Financial Leverage. Financial planning primarily involves anticipating the impact of operating, investment and financial decisions on the firm s future
More informationMANUFACTURING ACCOUNTS PRODUCTION COST STATEMENTS / BREAK-EVEN ANALYSIS CALCULATION
SESSION 12: MANUFACTURING ACCOUNTS PRODUCTION COST STATEMENTS / BREAK-EVEN ANALYSIS CALCULATION KEY CONCEPTS: In this session we will look at: - Manufacturing Accounts X-AMPLE QUESTIONS: QUESTION 1: You
More informationReg. 1.5833-1 (Effective for tax years beginning on and after January 1, 1998) Allocation and apportionment of Vermont net income by corporations
Reg. 1.5833 ALLOCATION AND APPORTIONMENT OF INCOME Reg. 1.5833-1 (Effective for tax years beginning on and after January 1, 1998) Allocation and apportionment of Vermont net income by corporations (a)
More informationhow to prepare a profit and loss (income) statement
business builder 3 how to prepare a profit and loss (income) statement amegy bank business resource center how to prepare a profit and loss (income) statement 2 how to prepare a profit and loss (income)
More informationSuggested layouts for financial statements in Accounting Courses National 5 and Higher
Suggested layouts for financial statements in Accounting Courses National 5 and Higher The following suggested layouts may be used when presenting financial statements in the Accounting Courses for National
More information12 Business Information (Green Sheet)
Give us COPIES only Clips only - NO STAPLES 12 Business Information (Green Sheet) If you are self-employed, or if you have had income for which you do not receive a W-2, please provide the following: A.
More informationBUSINESS BUILDER 3 HOW TO PREPARE A PROFIT AND LOSS (INCOME) STATEMENT
BUSINESS BUILDER 3 HOW TO PREPARE A PROFIT AND LOSS (INCOME) STATEMENT zions business resource center 2 how to prepare a profit and loss (income) statement A Profit and Loss (P&L) or income statement measures
More informationExport Business Plan Guide
Export Business Plan Guide Table of Contents Introduction... 4 SECTION 01: CURRENT SITUATION ANALYSIS... 5 Company Overview... 5 Availability of Resources... 6 SWOT Analysis... 9 SECTION 02: MARKET ANALYSIS...
More informationTax Return Questionnaire - 2013 Tax Year
Print this form out, take some time to fill it out, and bring it with you when you come to the office. This will save you time and money, and help us help you more effectively. Tax Return Questionnaire
More information3. If you received any interest from a "Seller Financed" mortgage, provide: Name and Address of Payer Social Security Number Amount
Print this form out, take some time to fill it out, and bring it with you when you come to the office. This will save you time and money, and help us help you more effectively. Tax Return Questionnaire
More informationGVEP Workshop Finance 101
GVEP Workshop Finance 101 Nairobi, January 2013 Agenda Introducing business finance Understanding financial statements Understanding cash flow LUNCH Reading and interpreting financial statements Evaluating
More informationI. GENERAL PROVISIONS II. KEY DEFINITIONS
APPROVED by Resolution No. 1 of 18 December 2003 of the Standards Board of the Public Establishment the Institute of Accounting of the Republic of Lithuania (Revised version of Order No. VAS-5 of 29 June
More informationACCOUNTS PRODUCTION OPEN SANS FONT FOR 2013 TAXCALC HUB AND ACCOUNTS PRODUCTION CHART OF ACCOUNTS - LIMITED COMPANY
OPEN SANS FONT FOR 2013 TAXCALC HUB AND ACCOUNTS PRODUCTION CHART OF ACCOUNTS - LIMITED COMPANY Contents Sales 1 Other Operating Income 1 Income from Shares in Group Undertakings 1 Income from Participating
More informationCOMPONENTS OF THE STATEMENT OF CASH FLOWS
ILLUSTRATION 24-1 OPERATING, INVESTING, AND FINANCING ACTIVITIES COMPONENTS OF THE STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES + Sales and Service Revenue Received Cost of Sales Paid Selling
More informationChapter 4 Job Order Costing. Job Costing vs. Process Costing Procedure of Job Costing Actual vs. normal Costs
Chapter 4 Job Order Costing Job Costing vs. Process Costing Procedure of Job Costing Actual vs. normal Costs 1 Building Block Concepts of Costing Systems The following five terms constitute the building
More informationCPA DUE DILIGENCE CHECKLIST FOR THE SALE AND ACQUISITION OF A BUSINESS
Law Offices of Robert A. Briskin, a Professional Corporation 1901 Avenue of the Stars, Suite 1700, Los Angeles, California 90067 Certified Specialist - Taxation Law Telephone (310) 201-0507 The State Bar
More informationJob-order Costing; T-Accounts; Income Statement
JOB-ORDER COSTING 1 Job-order Costing; T-Accounts; Income Statement Gold Nest Company is a family-owned enterprise that makes birdcages in Chinatown. A popular pastime among older Chinese men is to take
More informationINTERNATIONAL ACCOUNTING STANDARDS. CIE Guidance for teachers of. 7110 Principles of Accounts and. 0452 Accounting
www.xtremepapers.com INTERNATIONAL ACCOUNTING STANDARDS CIE Guidance for teachers of 7110 Principles of Accounts and 0452 Accounting 1 CONTENTS Introduction...3 Use of this document... 3 Users of financial
More informationBudget types. CH 6: Budgets HOW DO YOU COME UP WITH THE NUMBERS? Budget Periods WHY BUDGET?
CH 6: s WHY? PLANNING COMMUNICATION CONTROL:PERFORMANCE EVALUATION MOTIVATING types Master» Operating Sales, Production [purchases], Operating Expense. ProForma Income Statement» Financial Cash, Capital,
More informationCORK INSTITUTE OF TECHNOLOGY INSTITIÚID TEICNEOLAÍOCHTA CHORCAÍ. Semester 1 Examinations 20014/15
CORK INSTITUTE OF TECHNOLOGY INSTITIÚID TEICNEOLAÍOCHTA CHORCAÍ Semester 1 Examinations 20014/15 Module Title: Business Finance. Module Code: ACCT 7007 School: Programme Title: Programme Code: School of
More informationLesson 5: Inventory. 5.1 Introduction. 5.2 Manufacturer or Retailer?
Lesson 5: Inventory 5.1 Introduction Whether it is a brick and mortar or digital store, for many businesses, inventory management is a key cog of their operations. Managing inventory is an important key
More informationAbsorption Costing - Overview
Absorption Costing - Overview 1. Overview of Absorption costing and Variable Costing 2. Review how costs for Manufacturing are transferred to the product 3. Job Order Vs. Process Costing 4. Overhead Application
More informationFor our curriculum in Grade 12 we are going to use ratios to analyse the information available in the Income statement and the Balance sheet.
SUBJECT: ACCOUNTING GRADE 12 CHAPTER: COMPANIES LESSON: ANALYSIS AND INTERPRETATION-RATIOS LESSON OVERVIEW (KNOWLEDGE AREAS) LESSON 1. Introduction 2. Analysing of financial statements and its purpose
More informationFinancial Statement Preparation Webinar. Presented by Nick Chapman VEI Program Coordinator New York City
Financial Statement Preparation Webinar Presented by Nick Chapman VEI Program Coordinator New York City 122 Amsterdam Ave. New York, NY 10023 Phone: 212-769-2710 www.veinternational.org Objectives: Review
More informationThis is How Are Operating Budgets Created?, chapter 9 from the book Accounting for Managers (index.html) (v. 1.0).
This is How Are Operating Budgets Created?, chapter 9 from the book Accounting for Managers (index.html) (v. 1.0). This book is licensed under a Creative Commons by-nc-sa 3.0 (http://creativecommons.org/licenses/by-nc-sa/
More informationChapter 4. Systems Design: Process Costing. Types of Costing Systems Used to Determine Product Costs
4-1 Types of Systems Used to Determine Product Costs Chapter 4 Process Job-order Systems Design: Many units of a single, homogeneous product flow evenly through a continuous production process. One unit
More informationJones Sample Accounts Limited. Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements
Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements Period of accounts Start date: 1st June 2009 End date: 31st May 2010 Contents of the
More informationUNIVERSITY OF OKLAHOMA/NORMAN CAMPUS OFFICE OF RESEARCH SERVICES Procedures Guide. Recharge Center Operations
UNIVERSITY OF OKLAHOMA/NORMAN CAMPUS OFFICE OF RESEARCH SERVICES Procedures Guide Recharge Center Operations Overview 3 Establishing a Recharge Center 3 Information that Will Need to be Determined 3 Rate
More informationTRADING ACCOUNT (Horizontal Format) for the year ended. Particulars. Rs.
Dr. To Opening Stock To Purchases Less: Returns outwards () To Frieght & Carriage To Customs & Insurance To Wages To Gas, Water & Fuel To Factory Expenses To Royalty on Production To Cargo Expenses To
More informationIncome Measurement and Profitability Analysis
PROFITABILITY ANALYSIS The following financial statements for Spencer Company will be used to demonstrate the calculation of the various ratios in profitability analysis. Spencer Company Comparative Balance
More informationHow To Account For A Corporation
Competency: Financial Statements 1. Describe the different types of financial statements; explain their purpose and compare the difference. 2. Prepare a trial balance, a worksheet (8 and 10 columns), and
More informationCHAPTER 4. Final Accounts
CHAPTER 4 Final Accounts Meaning Preparation of final account is the last stage of the accounting cycle. The basic objective of every concern maintaining the book of accounts is to find out the profit
More informationBA213 Review for test # 2 Key
BA213 Review for test # 2 Key 1. Contribution margin can be defined as: a. the amount of sales revenue necessary to cover variable expenses. b. sales revenue minus fixed expenses. c. the amount of sales
More informationB. Division of Costs The purpose of a Manufacturing Account is to ascertain Cost of Production ( ).
Manufacturing Accounts ( ) S5 Manufacturing Account/LWL A. Function of a Manufacturing Acccount For those businesses which deal with manufacturing products. It is common in today s business to act both
More informationCourse pack Accounting 202 Chapter 13: Cash Flow Statement
Course pack Accounting 202 Chapter 13: Cash Flow Statement Value Chapter Included 13 Purpose of Cash Flow Understand Operating, Investing, Financing activities Prepare a Cash Flow Statement indirect only
More informationEdition 54 The Tax Treatment of Trading Stock
Edition 54 The Tax Treatment of Trading Stock INTRODUCTION In the first of a two-part series, we look at the tax treatment of trading stock. The next edition of Bookkeepers Knowledge Base will focus on
More informationFinancial Plan. A) Estimated One-Time Financial Requirements. Part One
Financial Plan The Financial Plan is perhaps one of the most important components of your Business Plan (see Business Plan Handout). Not only is it essential if you are seeking external financing it is
More informationGuide to Financial Ratios Analysis A Step by Step Guide to Balance Sheet and Profit and Loss Statement Analysis
Guide to Financial Ratios Analysis A Step by Step Guide to Balance Sheet and Profit and Loss Statement Analysis By BizMove Management Training Institute Other free books by BizMove that may interest you:
More informationCorporate Income Tax Return (Form 1120) Tx 8120 Project
Corporate Income Tax Return (Form 1120) Tx 8120 Project For two years, you have worked for a CPA firm, Weil, Duit, Wright, & Company (EIN 33-1201885), located at 1840 Peachtree Street, Atlanta, GA 30314
More informationIn this chapter, we build on the basic knowledge of how businesses
03-Seidman.qxd 5/15/04 11:52 AM Page 41 3 An Introduction to Business Financial Statements In this chapter, we build on the basic knowledge of how businesses are financed by looking at how firms organize
More informationSociety of Certified Management Accountants of Sri Lanka
Copyright Reserved Serial No Technician Stage March 2009 Examination Examination Date : 28 th March 2009 Number of Pages : 06 Examination Time: 9.30a:m.- 12.30p:m. Number of Questions: 05 Instructions
More informationWORK PROCESS SCHEDULE ACCOUNTING TECHNICIAN O*NET-SOC CODE: 43-3031.00 RAIS CODE: 1125HY
Accounting Technician 1 WORK PROCESS SCHEDULE ACCOUNTING TECHNICIAN O*NET-SOC CODE: 43-3031.00 RAIS CODE: 1125HY DESCRIPTION: Compute, classify, and record numerical data to keep financial records complete.
More informationManagement Accounting and Decision-Making
Management Accounting 15 Management Accounting and Decision-Making Management accounting writers tend to present management accounting as a loosely connected set of decision making tools. Although the
More informationINDICE Preface Part 1 the accounting cycle 1 Accounting, the language of business What is accounting?
INDICE Preface XV Part 1 the accounting cycle 1 Accounting, the language of business 2 What is accounting? The purpose and nature and accounting information, creating accounting information. Communicating
More information