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sheshe
11/27/2025
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MAS COMPILED NOTES
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Nob 27, 2025
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sheshe
@sheshe_
Ever wondered how businesses make smart financial decisions and keep... Ipakita pa
Think of management accounting as your business toolkit that helps companies make smart decisions with their limited resources. It's all about using financial info to plan better and control costs more effectively.
Management functions work like a cycle: planning sets your goals, organizing aligns your resources, controlling evaluates performance, and communicating keeps everyone informed. Companies also need a clear vision (where they want to be in the future) and mission (their core purpose).
There are three levels of management systems. Operational level handles routine, structured decisions based on set rules. Management level deals with semi-structured decisions that need some judgment calls. Strategic level tackles complex, unstructured decisions requiring expertise and wisdom.
The big difference between financial accounting and management accounting is pretty straightforward. Financial accounting follows strict rules (like GAAP) and creates reports for outsiders quarterly or annually. Management accounting is flexible, focuses on internal decisions, uses both historical and future data, and emphasizes timeliness over perfect precision.
Quick Tip: Remember that controllership handles recording and reporting (the "paperwork"), while treasurership manages actual money and assets (the "cash flow").
Understanding how costs behave is like predicting how your expenses change when you produce more or less stuff. This knowledge helps you make better pricing and production decisions.
Cost behavior follows three main patterns. Fixed costs stay the same total amount regardless of production (like rent), but cost less per unit as you make more. Variable costs increase as production goes up (like materials), but stay constant per unit. Mixed costs have both fixed and variable components.
The cost function y = a + bx is your formula for predicting total costs. Here, 'y' is total cost, 'a' is fixed costs, 'b' is variable cost per unit, and 'x' is your activity level. It's like a recipe that tells you exactly what your costs should be.
Several methods help you analyze mixed costs. The high-low method uses just the highest and lowest activity points to find your cost pattern. Regression analysis is more sophisticated - it finds the "line of best fit" using all your data points. The graphic method lets you visually plot costs and draw a line through the pattern.
Reality Check: These methods work best within the "relevant range" - don't expect the same cost patterns if you suddenly triple your production!
Correlation analysis helps you figure out how strongly two things are related - like whether higher production really means higher costs. It's basically measuring if your cost predictions are reliable.
The coefficient of correlation (r) ranges from +1.0 to -1.0. A positive correlation means both variables move in the same direction . A negative correlation means they move opposite ways. Zero means there's no predictable relationship.
Coefficient of determination (r²) is even more useful because it shows how well your independent variable predicts the dependent variable. If r² is 0.81 (81%), it means your activity level explains 81% of your cost changes - that's pretty reliable for making decisions.
Remember that correlation doesn't prove cause and effect. Just because two things move together doesn't mean one causes the other. However, if your r² is above 0.80 (80%), you can feel confident using that data for planning and budgeting decisions.
Student Success: If you see r = 0.90, quickly square it to get r² = 0.81. Since this exceeds 80%, you know the relationship is strong enough to trust!
CVP analysis is your profit planning superpower - it shows exactly how changes in costs, volume, and prices affect your bottom line. Think of it as a crystal ball for business profitability.
The breakeven point (BEP) is where you neither make money nor lose money. Calculate it using BEP (units) = Total Fixed Costs ÷ Contribution Margin per unit, or BEP (pesos) = Total Fixed Costs ÷ Contribution Margin Ratio. This tells you the minimum sales needed to avoid losses.
Margin of safety measures how much sales can drop before you start losing money. It's calculated as actual sales minus breakeven sales. The degree of operating leverage shows how sensitive your profits are to sales changes - higher leverage means bigger profit swings.
For sales mix situations with multiple products, you need weighted averages. Calculate the weighted average contribution margin, then use it in your standard BEP formulas. This helps you understand which product combinations are most profitable.
Pro Tip: CVP analysis assumes everything stays constant except volume - in real life, watch out for changes in prices, costs, or product mix that could throw off your calculations!
These two costing methods treat fixed factory overhead (FFOH) completely differently, leading to different profit numbers and inventory values. Understanding both is crucial for making smart business decisions.
Variable costing treats FFOH as a period expense, meaning it hits your income statement immediately. Absorption costing treats FFOH as a product cost, so it goes into inventory first and becomes an expense only when you sell the product. This is why absorption costing usually shows higher inventory values.
When production equals sales, both methods give the same profit. When production exceeds sales, absorption costing shows higher profit because some FFOH gets "trapped" in unsold inventory. When sales exceed production, variable costing shows higher profit.
The choice between methods affects decision-making. Variable costing works better for internal decisions, pricing, and CVP analysis because it clearly separates fixed and variable costs. Absorption costing is required for external financial reporting and tax purposes because it follows GAAP rules.
Memory Trick: Variable costing = immediate FFOH expense = better for internal decisions. Absorption costing = FFOH in inventory = required for external reports.
Standard costing sets performance benchmarks that help you control costs and evaluate efficiency. It's like having a GPS that tells you not just where you are, but whether you're on the most efficient route.
Standards come in two types: ideal standards assume perfect conditions (rarely useful), while practical standards are challenging but achievable targets that motivate employees and help with budgeting. Smart companies use practical standards.
Variance analysis compares actual performance to standards. Material variances include price variance (purchasing manager's responsibility) and quantity variance (production manager's responsibility). Labor variances include rate variance and efficiency variance, both typically managed by production supervisors.
Calculate variances using simple formulas. Material Price Variance = × Actual Quantity. Material Quantity Variance = × Standard Price. Similar logic applies to labor rate and efficiency variances.
Success Strategy: Always identify who's responsible for each variance - this makes it easier to take corrective action and improve future performance.
Factory overhead variances get more complex because overhead includes both fixed and variable components. You can analyze them using 1-way, 2-way, 3-way, or 4-way analysis depending on how detailed you want to get.
The 2-way analysis splits overhead variance into budget variance (actual vs. budgeted overhead) and volume variance (budgeted vs. applied overhead). The 4-way analysis breaks this down further into variable rate, fixed budget, variable efficiency, and fixed volume variances.
Material mix and yield variances help when you use multiple materials. Mix variance shows the cost impact of using different proportions of materials than planned. Yield variance measures whether you got the expected output from your material inputs.
Gross profit variance analysis examines why your gross profit changed from budget. It considers price factors (selling price changes), cost factors (cost changes), and volume factors (sales quantity changes). This helps identify whether profit changes came from pricing decisions, cost control, or sales performance.
Real-World Application: Focus on significant variances only - investigating every small difference wastes time. Use the "management by exception" principle to prioritize your attention.
Budgeting is like creating a financial roadmap for your business - it shows where you plan to go and how you'll get there. Good budgets require cooperation from everyone and careful attention to accuracy over conservatism.
The master budget combines all your individual budgets into one comprehensive plan. It starts with the sales budget (your foundation), then builds the production budget, material budget, labor budget, and finally the budgeted income statement and cash budget.
Budget administration works best when top management leads the process to show its importance. The budget committee supervises and coordinates everything, making sure all departments work together toward common goals. Goal congruence ensures everyone pulls in the same direction.
Different budget types serve different purposes. Operational budgets cover day-to-day activities like sales and production. Financial budgets handle cash flow and capital expenditures. Strategic budgets are long-term, while tactical budgets are short-term and more detailed.
Key Insight: Beware of "budgetary slack" - when managers deliberately underestimate revenues or overestimate costs to make their targets easier to hit. This defeats the purpose of challenging but achievable goals.
Flexible budgets adjust to different activity levels, making them more useful for performance evaluation than static budgets that assume one fixed activity level. Think of flexible budgets as having multiple scenarios built in.
Participatory budgeting involves employees in the budget process, leading to better buy-in and more realistic targets. Authoritative budgeting is faster but may miss important input from people actually doing the work. Most successful companies use a combination approach.
Zero-based budgeting makes managers justify every expense from scratch each period, rather than just adjusting last year's numbers. It's more work but prevents outdated expenses from continuing indefinitely. Continuous budgets constantly update by adding new periods and dropping old ones.
The budget process typically flows from strategic planning down to detailed operational budgets. Financial budgets include cash budgets (crucial for avoiding cash flow problems), capital expenditure budgets (for major purchases), and projected balance sheets and income statements.
Budget Reality: Remember that budgets are planning tools, not straightjackets. They should be revised when significant changes occur, but not so often that they lose their control function.
Relevant costing helps you make smart business decisions by focusing only on costs and revenues that actually differ between alternatives. It's like filtering out the noise to see what really matters.
Relevant costs are future costs that differ between alternatives. Sunk costs (already spent) and costs that don't change between options are irrelevant. Opportunity cost - the benefit you give up by choosing one alternative over another - is always relevant and often overlooked.
Common decision types include make vs. buy , accept vs. reject special orders (accept if additional revenue exceeds additional costs), and continue vs. discontinue (continue if avoidable revenues exceed avoidable costs).
For sell vs. process further decisions, ignore joint costs (they're sunk) and compare additional processing costs to additional revenue. For product mix decisions with limited resources, prioritize products with the highest contribution margin per unit of the limiting factor.
Decision-Making Pro Tip: Always use the differential approach - compare only the differences between alternatives. This saves time and reduces the chance of including irrelevant costs in your analysis.
Ang aming AI Companion ay isang AI tool na nakatuon sa mga estudyante na nag-aalok ng higit pa sa mga sagot lang. Binuo mula sa milyong Knowunity resources, nagbibigay ito ng may-kaugnayang impormasyon, personalized na study plans, quizzes, at content direkta sa chat, na umaangkop sa iyong sariling learning journey.
Maaari mong i-download ang app mula sa Google Play Store at Apple App Store.
Tama 'yan! Mag-enjoy sa libreng access sa mga study content, makipag-connect sa kapwa mga estudyante, at kumuha ng instant na tulong – lahat nasa iyong daliri lang.
App Store
Google Play
Napakadaling gamitin at maganda ang disenyo ng app. Nahanap ko lahat ng hinahanap ko hanggang ngayon at natuto ako ng marami mula sa mga presentasyon! Tiyak na gagamitin ko ang app para sa isang takdang-aralin sa klase! At siyempre, nakakatulong din ito bilang inspirasyon.
Stefan S
gumagamit ng iOS
Sobrang ganda talaga ng app na ito. Maraming mga study notes at tulong [...]. Ang problemang subject ko ay Pranses, halimbawa, at ang app ay may maraming options para tumulong. Salamat sa app na ito, bumuti ang Pranses ko. Irerekumenda ko ito sa lahat.
Samantha Klich
Android user
Wow, talagang namangha ako. Sinubukan ko lang ang app dahil nakita ko itong ina-advertise nang maraming beses at sobrang nagulat ako. Ang app na ito ang TULONG na gusto mo para sa paaralan at higit sa lahat, nag-aalok ito ng maraming bagay, tulad ng workouts at fact sheets, na SOBRANG nakatulong sa akin.
Anna
iOS user
Pinakamagandang app sa mundo! walang masabi dahil sobrang ganda nito
Thomas R
iOS user
Napakaganda talaga. Nakakapag-review ako ng 10x mas mabuti, itong app ay mabilis na 10/10. Lubos kong inirerekomenda ito sa lahat. Pwede akong manood at maghanap ng notes. Pwede kong i-save ang mga ito sa subject folder. Pwede kong i-review anumang oras kapag bumalik ako. Kung hindi mo pa nasubukan ang app na ito, marami kang nawawala.
Basil
Android user
Ang app na ito ay nagpapalakas ng loob ko sa paghahanda sa exams, hindi lang dahil sa pagpapataas ng aking kumpiyansa sa sarili sa pamamagitan ng mga feature na nagpapahintulot sa iyo na makipag-connect sa iba at mabawasan ang pakiramdam na nag-iisa, kundi pati na rin sa paraan na nakatuon ang app sa pagpapagaan ng iyong pakiramdam. Madali itong i-navigate, masaya gamitin, at nakakatulong sa sinumang nahihirapan sa kahit anong paraan.
David K
iOS user
Sobrang galing ng app! Ilalagay ko lang ang paksa sa search bar at makakakuha na ako ng sagot kaagad. Hindi ko kailangang manood ng 10 YouTube videos para maintindihan ang isang bagay, kaya nakakatipid ako ng oras. Lubos na inirerekomenda!
Sudenaz Ocak
Android user
Sa paaralan, napakahina ko sa math pero salamat sa app, mas mahusay na ako ngayon. Lubos akong nagpapasalamat na ginawa niyo ang app na ito.
Greenlight Bonnie
Android user
napakareliable na app para tumulong at palawakin ang iyong mga ideya sa Math, English at iba pang mga related na paksa sa iyong mga gawain. gamitin mo ang app na ito kung nahihirapan ka sa mga area, susi ito para diyan. sana nag-review na ako dati. at libre rin ito kaya huwag mag-alala tungkol diyan.
Rohan U
Android user
Alam kong maraming apps gumagamit ng fake accounts para mapataas ang kanilang reviews pero ang app na ito ay deserve lahat ng papuri. Dati nakakakuha ako ng 4 sa aking English exams at ngayon nakakuha ako ng grade 7. Hindi ko pa alam ang app na ito tatlong araw bago ang exam at nakatulong ito ng SOBRA. Pakisuyong maniwala sa akin at gamitin ito dahil sigurado akong makikita mo rin ang mga pagbabago.
Xander S
iOS user
SOBRANG KAPAKI-PAKINABANG NG MGA QUIZZES AT FLASHCARDS AT SOBRANG GUSTO KO ANG SCHOOLGPT. PARANG CHATGPT DIN PERO MAS MATALINO!! TINULUNGAN DIN AKO SA AKING MASCARA PROBLEMS!! PATI NA RIN SA AKING TUNAY NA MGA SUBJECTS! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
Grabe talaga ang app na to. Sobrang nakakaboring sakin ang pagreview pero ginagawa ng app na to na sobrang dali mag-organize ng lahat at pwede mong tanungin ang libreng ai para subukin ang sarili mo kaya sobrang buti at madali mong ma-upload ang sarili mong mga bagay. highly recommend bilang isang taong nagte-take ng mocks ngayon
Paul T
iOS user
Napakadaling gamitin at maganda ang disenyo ng app. Nahanap ko lahat ng hinahanap ko hanggang ngayon at natuto ako ng marami mula sa mga presentasyon! Tiyak na gagamitin ko ang app para sa isang takdang-aralin sa klase! At siyempre, nakakatulong din ito bilang inspirasyon.
Stefan S
gumagamit ng iOS
Sobrang ganda talaga ng app na ito. Maraming mga study notes at tulong [...]. Ang problemang subject ko ay Pranses, halimbawa, at ang app ay may maraming options para tumulong. Salamat sa app na ito, bumuti ang Pranses ko. Irerekumenda ko ito sa lahat.
Samantha Klich
Android user
Wow, talagang namangha ako. Sinubukan ko lang ang app dahil nakita ko itong ina-advertise nang maraming beses at sobrang nagulat ako. Ang app na ito ang TULONG na gusto mo para sa paaralan at higit sa lahat, nag-aalok ito ng maraming bagay, tulad ng workouts at fact sheets, na SOBRANG nakatulong sa akin.
Anna
iOS user
Pinakamagandang app sa mundo! walang masabi dahil sobrang ganda nito
Thomas R
iOS user
Napakaganda talaga. Nakakapag-review ako ng 10x mas mabuti, itong app ay mabilis na 10/10. Lubos kong inirerekomenda ito sa lahat. Pwede akong manood at maghanap ng notes. Pwede kong i-save ang mga ito sa subject folder. Pwede kong i-review anumang oras kapag bumalik ako. Kung hindi mo pa nasubukan ang app na ito, marami kang nawawala.
Basil
Android user
Ang app na ito ay nagpapalakas ng loob ko sa paghahanda sa exams, hindi lang dahil sa pagpapataas ng aking kumpiyansa sa sarili sa pamamagitan ng mga feature na nagpapahintulot sa iyo na makipag-connect sa iba at mabawasan ang pakiramdam na nag-iisa, kundi pati na rin sa paraan na nakatuon ang app sa pagpapagaan ng iyong pakiramdam. Madali itong i-navigate, masaya gamitin, at nakakatulong sa sinumang nahihirapan sa kahit anong paraan.
David K
iOS user
Sobrang galing ng app! Ilalagay ko lang ang paksa sa search bar at makakakuha na ako ng sagot kaagad. Hindi ko kailangang manood ng 10 YouTube videos para maintindihan ang isang bagay, kaya nakakatipid ako ng oras. Lubos na inirerekomenda!
Sudenaz Ocak
Android user
Sa paaralan, napakahina ko sa math pero salamat sa app, mas mahusay na ako ngayon. Lubos akong nagpapasalamat na ginawa niyo ang app na ito.
Greenlight Bonnie
Android user
napakareliable na app para tumulong at palawakin ang iyong mga ideya sa Math, English at iba pang mga related na paksa sa iyong mga gawain. gamitin mo ang app na ito kung nahihirapan ka sa mga area, susi ito para diyan. sana nag-review na ako dati. at libre rin ito kaya huwag mag-alala tungkol diyan.
Rohan U
Android user
Alam kong maraming apps gumagamit ng fake accounts para mapataas ang kanilang reviews pero ang app na ito ay deserve lahat ng papuri. Dati nakakakuha ako ng 4 sa aking English exams at ngayon nakakuha ako ng grade 7. Hindi ko pa alam ang app na ito tatlong araw bago ang exam at nakatulong ito ng SOBRA. Pakisuyong maniwala sa akin at gamitin ito dahil sigurado akong makikita mo rin ang mga pagbabago.
Xander S
iOS user
SOBRANG KAPAKI-PAKINABANG NG MGA QUIZZES AT FLASHCARDS AT SOBRANG GUSTO KO ANG SCHOOLGPT. PARANG CHATGPT DIN PERO MAS MATALINO!! TINULUNGAN DIN AKO SA AKING MASCARA PROBLEMS!! PATI NA RIN SA AKING TUNAY NA MGA SUBJECTS! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
Grabe talaga ang app na to. Sobrang nakakaboring sakin ang pagreview pero ginagawa ng app na to na sobrang dali mag-organize ng lahat at pwede mong tanungin ang libreng ai para subukin ang sarili mo kaya sobrang buti at madali mong ma-upload ang sarili mong mga bagay. highly recommend bilang isang taong nagte-take ng mocks ngayon
Paul T
iOS user
sheshe
@sheshe_
Ever wondered how businesses make smart financial decisions and keep track of their costs? Management accounting is like having a GPS for your company's money - it helps managers navigate through planning, controlling, and making profitable choices using data and... Ipakita pa
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Think of management accounting as your business toolkit that helps companies make smart decisions with their limited resources. It's all about using financial info to plan better and control costs more effectively.
Management functions work like a cycle: planning sets your goals, organizing aligns your resources, controlling evaluates performance, and communicating keeps everyone informed. Companies also need a clear vision (where they want to be in the future) and mission (their core purpose).
There are three levels of management systems. Operational level handles routine, structured decisions based on set rules. Management level deals with semi-structured decisions that need some judgment calls. Strategic level tackles complex, unstructured decisions requiring expertise and wisdom.
The big difference between financial accounting and management accounting is pretty straightforward. Financial accounting follows strict rules (like GAAP) and creates reports for outsiders quarterly or annually. Management accounting is flexible, focuses on internal decisions, uses both historical and future data, and emphasizes timeliness over perfect precision.
Quick Tip: Remember that controllership handles recording and reporting (the "paperwork"), while treasurership manages actual money and assets (the "cash flow").
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Understanding how costs behave is like predicting how your expenses change when you produce more or less stuff. This knowledge helps you make better pricing and production decisions.
Cost behavior follows three main patterns. Fixed costs stay the same total amount regardless of production (like rent), but cost less per unit as you make more. Variable costs increase as production goes up (like materials), but stay constant per unit. Mixed costs have both fixed and variable components.
The cost function y = a + bx is your formula for predicting total costs. Here, 'y' is total cost, 'a' is fixed costs, 'b' is variable cost per unit, and 'x' is your activity level. It's like a recipe that tells you exactly what your costs should be.
Several methods help you analyze mixed costs. The high-low method uses just the highest and lowest activity points to find your cost pattern. Regression analysis is more sophisticated - it finds the "line of best fit" using all your data points. The graphic method lets you visually plot costs and draw a line through the pattern.
Reality Check: These methods work best within the "relevant range" - don't expect the same cost patterns if you suddenly triple your production!
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Correlation analysis helps you figure out how strongly two things are related - like whether higher production really means higher costs. It's basically measuring if your cost predictions are reliable.
The coefficient of correlation (r) ranges from +1.0 to -1.0. A positive correlation means both variables move in the same direction . A negative correlation means they move opposite ways. Zero means there's no predictable relationship.
Coefficient of determination (r²) is even more useful because it shows how well your independent variable predicts the dependent variable. If r² is 0.81 (81%), it means your activity level explains 81% of your cost changes - that's pretty reliable for making decisions.
Remember that correlation doesn't prove cause and effect. Just because two things move together doesn't mean one causes the other. However, if your r² is above 0.80 (80%), you can feel confident using that data for planning and budgeting decisions.
Student Success: If you see r = 0.90, quickly square it to get r² = 0.81. Since this exceeds 80%, you know the relationship is strong enough to trust!
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CVP analysis is your profit planning superpower - it shows exactly how changes in costs, volume, and prices affect your bottom line. Think of it as a crystal ball for business profitability.
The breakeven point (BEP) is where you neither make money nor lose money. Calculate it using BEP (units) = Total Fixed Costs ÷ Contribution Margin per unit, or BEP (pesos) = Total Fixed Costs ÷ Contribution Margin Ratio. This tells you the minimum sales needed to avoid losses.
Margin of safety measures how much sales can drop before you start losing money. It's calculated as actual sales minus breakeven sales. The degree of operating leverage shows how sensitive your profits are to sales changes - higher leverage means bigger profit swings.
For sales mix situations with multiple products, you need weighted averages. Calculate the weighted average contribution margin, then use it in your standard BEP formulas. This helps you understand which product combinations are most profitable.
Pro Tip: CVP analysis assumes everything stays constant except volume - in real life, watch out for changes in prices, costs, or product mix that could throw off your calculations!
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These two costing methods treat fixed factory overhead (FFOH) completely differently, leading to different profit numbers and inventory values. Understanding both is crucial for making smart business decisions.
Variable costing treats FFOH as a period expense, meaning it hits your income statement immediately. Absorption costing treats FFOH as a product cost, so it goes into inventory first and becomes an expense only when you sell the product. This is why absorption costing usually shows higher inventory values.
When production equals sales, both methods give the same profit. When production exceeds sales, absorption costing shows higher profit because some FFOH gets "trapped" in unsold inventory. When sales exceed production, variable costing shows higher profit.
The choice between methods affects decision-making. Variable costing works better for internal decisions, pricing, and CVP analysis because it clearly separates fixed and variable costs. Absorption costing is required for external financial reporting and tax purposes because it follows GAAP rules.
Memory Trick: Variable costing = immediate FFOH expense = better for internal decisions. Absorption costing = FFOH in inventory = required for external reports.
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Standard costing sets performance benchmarks that help you control costs and evaluate efficiency. It's like having a GPS that tells you not just where you are, but whether you're on the most efficient route.
Standards come in two types: ideal standards assume perfect conditions (rarely useful), while practical standards are challenging but achievable targets that motivate employees and help with budgeting. Smart companies use practical standards.
Variance analysis compares actual performance to standards. Material variances include price variance (purchasing manager's responsibility) and quantity variance (production manager's responsibility). Labor variances include rate variance and efficiency variance, both typically managed by production supervisors.
Calculate variances using simple formulas. Material Price Variance = × Actual Quantity. Material Quantity Variance = × Standard Price. Similar logic applies to labor rate and efficiency variances.
Success Strategy: Always identify who's responsible for each variance - this makes it easier to take corrective action and improve future performance.
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Factory overhead variances get more complex because overhead includes both fixed and variable components. You can analyze them using 1-way, 2-way, 3-way, or 4-way analysis depending on how detailed you want to get.
The 2-way analysis splits overhead variance into budget variance (actual vs. budgeted overhead) and volume variance (budgeted vs. applied overhead). The 4-way analysis breaks this down further into variable rate, fixed budget, variable efficiency, and fixed volume variances.
Material mix and yield variances help when you use multiple materials. Mix variance shows the cost impact of using different proportions of materials than planned. Yield variance measures whether you got the expected output from your material inputs.
Gross profit variance analysis examines why your gross profit changed from budget. It considers price factors (selling price changes), cost factors (cost changes), and volume factors (sales quantity changes). This helps identify whether profit changes came from pricing decisions, cost control, or sales performance.
Real-World Application: Focus on significant variances only - investigating every small difference wastes time. Use the "management by exception" principle to prioritize your attention.
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Budgeting is like creating a financial roadmap for your business - it shows where you plan to go and how you'll get there. Good budgets require cooperation from everyone and careful attention to accuracy over conservatism.
The master budget combines all your individual budgets into one comprehensive plan. It starts with the sales budget (your foundation), then builds the production budget, material budget, labor budget, and finally the budgeted income statement and cash budget.
Budget administration works best when top management leads the process to show its importance. The budget committee supervises and coordinates everything, making sure all departments work together toward common goals. Goal congruence ensures everyone pulls in the same direction.
Different budget types serve different purposes. Operational budgets cover day-to-day activities like sales and production. Financial budgets handle cash flow and capital expenditures. Strategic budgets are long-term, while tactical budgets are short-term and more detailed.
Key Insight: Beware of "budgetary slack" - when managers deliberately underestimate revenues or overestimate costs to make their targets easier to hit. This defeats the purpose of challenging but achievable goals.
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Flexible budgets adjust to different activity levels, making them more useful for performance evaluation than static budgets that assume one fixed activity level. Think of flexible budgets as having multiple scenarios built in.
Participatory budgeting involves employees in the budget process, leading to better buy-in and more realistic targets. Authoritative budgeting is faster but may miss important input from people actually doing the work. Most successful companies use a combination approach.
Zero-based budgeting makes managers justify every expense from scratch each period, rather than just adjusting last year's numbers. It's more work but prevents outdated expenses from continuing indefinitely. Continuous budgets constantly update by adding new periods and dropping old ones.
The budget process typically flows from strategic planning down to detailed operational budgets. Financial budgets include cash budgets (crucial for avoiding cash flow problems), capital expenditure budgets (for major purchases), and projected balance sheets and income statements.
Budget Reality: Remember that budgets are planning tools, not straightjackets. They should be revised when significant changes occur, but not so often that they lose their control function.
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Relevant costing helps you make smart business decisions by focusing only on costs and revenues that actually differ between alternatives. It's like filtering out the noise to see what really matters.
Relevant costs are future costs that differ between alternatives. Sunk costs (already spent) and costs that don't change between options are irrelevant. Opportunity cost - the benefit you give up by choosing one alternative over another - is always relevant and often overlooked.
Common decision types include make vs. buy , accept vs. reject special orders (accept if additional revenue exceeds additional costs), and continue vs. discontinue (continue if avoidable revenues exceed avoidable costs).
For sell vs. process further decisions, ignore joint costs (they're sunk) and compare additional processing costs to additional revenue. For product mix decisions with limited resources, prioritize products with the highest contribution margin per unit of the limiting factor.
Decision-Making Pro Tip: Always use the differential approach - compare only the differences between alternatives. This saves time and reduces the chance of including irrelevant costs in your analysis.
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Ang aming AI Companion ay isang AI tool na nakatuon sa mga estudyante na nag-aalok ng higit pa sa mga sagot lang. Binuo mula sa milyong Knowunity resources, nagbibigay ito ng may-kaugnayang impormasyon, personalized na study plans, quizzes, at content direkta sa chat, na umaangkop sa iyong sariling learning journey.
Maaari mong i-download ang app mula sa Google Play Store at Apple App Store.
Tama 'yan! Mag-enjoy sa libreng access sa mga study content, makipag-connect sa kapwa mga estudyante, at kumuha ng instant na tulong – lahat nasa iyong daliri lang.
1
Smart Tools NEW
I-transform ang note na ito sa: ✓ 50+ Practice Questions ✓ Interactive Flashcards ✓ Full Mock Exam ✓ Essay Outlines
App Store
Google Play
Napakadaling gamitin at maganda ang disenyo ng app. Nahanap ko lahat ng hinahanap ko hanggang ngayon at natuto ako ng marami mula sa mga presentasyon! Tiyak na gagamitin ko ang app para sa isang takdang-aralin sa klase! At siyempre, nakakatulong din ito bilang inspirasyon.
Stefan S
gumagamit ng iOS
Sobrang ganda talaga ng app na ito. Maraming mga study notes at tulong [...]. Ang problemang subject ko ay Pranses, halimbawa, at ang app ay may maraming options para tumulong. Salamat sa app na ito, bumuti ang Pranses ko. Irerekumenda ko ito sa lahat.
Samantha Klich
Android user
Wow, talagang namangha ako. Sinubukan ko lang ang app dahil nakita ko itong ina-advertise nang maraming beses at sobrang nagulat ako. Ang app na ito ang TULONG na gusto mo para sa paaralan at higit sa lahat, nag-aalok ito ng maraming bagay, tulad ng workouts at fact sheets, na SOBRANG nakatulong sa akin.
Anna
iOS user
Pinakamagandang app sa mundo! walang masabi dahil sobrang ganda nito
Thomas R
iOS user
Napakaganda talaga. Nakakapag-review ako ng 10x mas mabuti, itong app ay mabilis na 10/10. Lubos kong inirerekomenda ito sa lahat. Pwede akong manood at maghanap ng notes. Pwede kong i-save ang mga ito sa subject folder. Pwede kong i-review anumang oras kapag bumalik ako. Kung hindi mo pa nasubukan ang app na ito, marami kang nawawala.
Basil
Android user
Ang app na ito ay nagpapalakas ng loob ko sa paghahanda sa exams, hindi lang dahil sa pagpapataas ng aking kumpiyansa sa sarili sa pamamagitan ng mga feature na nagpapahintulot sa iyo na makipag-connect sa iba at mabawasan ang pakiramdam na nag-iisa, kundi pati na rin sa paraan na nakatuon ang app sa pagpapagaan ng iyong pakiramdam. Madali itong i-navigate, masaya gamitin, at nakakatulong sa sinumang nahihirapan sa kahit anong paraan.
David K
iOS user
Sobrang galing ng app! Ilalagay ko lang ang paksa sa search bar at makakakuha na ako ng sagot kaagad. Hindi ko kailangang manood ng 10 YouTube videos para maintindihan ang isang bagay, kaya nakakatipid ako ng oras. Lubos na inirerekomenda!
Sudenaz Ocak
Android user
Sa paaralan, napakahina ko sa math pero salamat sa app, mas mahusay na ako ngayon. Lubos akong nagpapasalamat na ginawa niyo ang app na ito.
Greenlight Bonnie
Android user
napakareliable na app para tumulong at palawakin ang iyong mga ideya sa Math, English at iba pang mga related na paksa sa iyong mga gawain. gamitin mo ang app na ito kung nahihirapan ka sa mga area, susi ito para diyan. sana nag-review na ako dati. at libre rin ito kaya huwag mag-alala tungkol diyan.
Rohan U
Android user
Alam kong maraming apps gumagamit ng fake accounts para mapataas ang kanilang reviews pero ang app na ito ay deserve lahat ng papuri. Dati nakakakuha ako ng 4 sa aking English exams at ngayon nakakuha ako ng grade 7. Hindi ko pa alam ang app na ito tatlong araw bago ang exam at nakatulong ito ng SOBRA. Pakisuyong maniwala sa akin at gamitin ito dahil sigurado akong makikita mo rin ang mga pagbabago.
Xander S
iOS user
SOBRANG KAPAKI-PAKINABANG NG MGA QUIZZES AT FLASHCARDS AT SOBRANG GUSTO KO ANG SCHOOLGPT. PARANG CHATGPT DIN PERO MAS MATALINO!! TINULUNGAN DIN AKO SA AKING MASCARA PROBLEMS!! PATI NA RIN SA AKING TUNAY NA MGA SUBJECTS! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
Grabe talaga ang app na to. Sobrang nakakaboring sakin ang pagreview pero ginagawa ng app na to na sobrang dali mag-organize ng lahat at pwede mong tanungin ang libreng ai para subukin ang sarili mo kaya sobrang buti at madali mong ma-upload ang sarili mong mga bagay. highly recommend bilang isang taong nagte-take ng mocks ngayon
Paul T
iOS user
Napakadaling gamitin at maganda ang disenyo ng app. Nahanap ko lahat ng hinahanap ko hanggang ngayon at natuto ako ng marami mula sa mga presentasyon! Tiyak na gagamitin ko ang app para sa isang takdang-aralin sa klase! At siyempre, nakakatulong din ito bilang inspirasyon.
Stefan S
gumagamit ng iOS
Sobrang ganda talaga ng app na ito. Maraming mga study notes at tulong [...]. Ang problemang subject ko ay Pranses, halimbawa, at ang app ay may maraming options para tumulong. Salamat sa app na ito, bumuti ang Pranses ko. Irerekumenda ko ito sa lahat.
Samantha Klich
Android user
Wow, talagang namangha ako. Sinubukan ko lang ang app dahil nakita ko itong ina-advertise nang maraming beses at sobrang nagulat ako. Ang app na ito ang TULONG na gusto mo para sa paaralan at higit sa lahat, nag-aalok ito ng maraming bagay, tulad ng workouts at fact sheets, na SOBRANG nakatulong sa akin.
Anna
iOS user
Pinakamagandang app sa mundo! walang masabi dahil sobrang ganda nito
Thomas R
iOS user
Napakaganda talaga. Nakakapag-review ako ng 10x mas mabuti, itong app ay mabilis na 10/10. Lubos kong inirerekomenda ito sa lahat. Pwede akong manood at maghanap ng notes. Pwede kong i-save ang mga ito sa subject folder. Pwede kong i-review anumang oras kapag bumalik ako. Kung hindi mo pa nasubukan ang app na ito, marami kang nawawala.
Basil
Android user
Ang app na ito ay nagpapalakas ng loob ko sa paghahanda sa exams, hindi lang dahil sa pagpapataas ng aking kumpiyansa sa sarili sa pamamagitan ng mga feature na nagpapahintulot sa iyo na makipag-connect sa iba at mabawasan ang pakiramdam na nag-iisa, kundi pati na rin sa paraan na nakatuon ang app sa pagpapagaan ng iyong pakiramdam. Madali itong i-navigate, masaya gamitin, at nakakatulong sa sinumang nahihirapan sa kahit anong paraan.
David K
iOS user
Sobrang galing ng app! Ilalagay ko lang ang paksa sa search bar at makakakuha na ako ng sagot kaagad. Hindi ko kailangang manood ng 10 YouTube videos para maintindihan ang isang bagay, kaya nakakatipid ako ng oras. Lubos na inirerekomenda!
Sudenaz Ocak
Android user
Sa paaralan, napakahina ko sa math pero salamat sa app, mas mahusay na ako ngayon. Lubos akong nagpapasalamat na ginawa niyo ang app na ito.
Greenlight Bonnie
Android user
napakareliable na app para tumulong at palawakin ang iyong mga ideya sa Math, English at iba pang mga related na paksa sa iyong mga gawain. gamitin mo ang app na ito kung nahihirapan ka sa mga area, susi ito para diyan. sana nag-review na ako dati. at libre rin ito kaya huwag mag-alala tungkol diyan.
Rohan U
Android user
Alam kong maraming apps gumagamit ng fake accounts para mapataas ang kanilang reviews pero ang app na ito ay deserve lahat ng papuri. Dati nakakakuha ako ng 4 sa aking English exams at ngayon nakakuha ako ng grade 7. Hindi ko pa alam ang app na ito tatlong araw bago ang exam at nakatulong ito ng SOBRA. Pakisuyong maniwala sa akin at gamitin ito dahil sigurado akong makikita mo rin ang mga pagbabago.
Xander S
iOS user
SOBRANG KAPAKI-PAKINABANG NG MGA QUIZZES AT FLASHCARDS AT SOBRANG GUSTO KO ANG SCHOOLGPT. PARANG CHATGPT DIN PERO MAS MATALINO!! TINULUNGAN DIN AKO SA AKING MASCARA PROBLEMS!! PATI NA RIN SA AKING TUNAY NA MGA SUBJECTS! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
Grabe talaga ang app na to. Sobrang nakakaboring sakin ang pagreview pero ginagawa ng app na to na sobrang dali mag-organize ng lahat at pwede mong tanungin ang libreng ai para subukin ang sarili mo kaya sobrang buti at madali mong ma-upload ang sarili mong mga bagay. highly recommend bilang isang taong nagte-take ng mocks ngayon
Paul T
iOS user
