Please enable JavaScript.
Coggle requires JavaScript to display documents.
Controlling organisations - Coggle Diagram
Controlling organisations
Variable Costing and Breakeven
Cours
Cost volume profit (CVP)
Definition
: relationship between cost volume and profit
Why do we take away fixed costs?
Contribution
definition and calculation
Break Even point definition and calculation
In units / £ / using Contribution to Sales ratio
Contribution to sales ratio (C/S) : alternative way to calculate BEP ( way to find it : 1) Sales revenue - variable cost )
Margin of Safety MoS
Definition
: difference between maximum sales and break even point / profitable operation
Calculation
: in units or £ / in %
Target profit
Definition:
level of output to achieve a certain profit
Sales required
calculation calculation
Total contribution required for a target profit
Sales mix
Assumption and limitation of Break even or CVP
doc
Sensitivity analysis
Method: adjusting one parameter
Goal: find the most sensitive parameter
High Low Method
Exercices
:checkered_flag: "Break even analysis ppt" / "Questions done in class word"
:checkered_flag: "Word doc: Case Study CVP analysis based on capacity usage in a leisure center"
1) calculate the selling price from finding the total capacity / deducing the sales required / 3) finding the selling price
2) calculate the anticipated profit
don't forget to take out fixed cost when calculating profit
:checkered_flag: Question using High Low method
Short term decision making
:checkered_flag: Exam question "zara limited" :warning:
Cours
Contribution analysis ( decision based on positive contribution )
Why do we cease activities? What are the solutions?
Different types of decisions
One-off contracts
Make of buy
:checkered_flag: exercice Short term decision making ppt
:checkered_flag: case study limiting factors and Break Even
Absorption vs Marginal costing
Cours
Assumption
(direct=variable / indirect=fixed)
Cost cards
using Absorption Costing
using Marginal costing
Profit statements
using Absorption costing
Using Marginal costing
Reconciliation between marginal costing profit and absorption costing profit
Arguments
in favour of Absorption costing / in favour of Marginal costing
Exercice method
1) calculating the variable cost and Full cost for absorption costing
Exercice
:checkered_flag: Week 4 lecture question - HIPHOPTOP
:checkered_flag: Practice question alternative cost accumulation system :warning: don't understand the values in the profite statements
Full costing (traditional and ABC costing)
Cours
Total absorption costing def
Traditional product costing
Its limits
Method
Method: ABC costing
What are the difference in the result traditional vs ABC?
In higher and lower volume products
Compare selling prices, which product to increase price, etc.
Exercice
:checkered_flag: ABC group work
:checkered_flag:ABC class practice - Lancaster Wood
Midterm exam practice
:checkered_flag:Continuous assessment gdp 3 with answers :warning: