P1 Flashcards
What is a behaviour category?
Fixed stepped semi variable
What is element category
Materials labour
What is nature category
Direct indirect
What is purpose of Management accounts
Planning control and decision making
What are the 3 levels of decision making
Strategic, tactical, operational
What is a cost pool
Activity that incurs costs
What is a cost driver
Absorbs pools into units
Link between activity and cost units
What is continous costing
Similar products or services are produced as a result of a sequence of continuous operations
What are two key impacts of throughput accounting?
Inventory valuation - inventory valued at purchase cost of bought in goods
Decision making - max measure of throughput contribution
What is functional services
Needed to execute features of app e.g. notifications, chat
What is admins services
User friendly admin dashboard, more difficult cost to anticipate
What is infrastructure cost
Where app is hosted, data stored and delivered
What is a digital costing system
Involves linking systems with suppliers, customers
What is a benefit of sales mix variance?
Identify trends in sales
What is a Pro of sales quantity variance?
Indicate changes in size of market, change in market share
What is a sensitivity analysis
Revising one key assumption to examine impact on the budget
What is stress testing
Examine how budget performs under pressure
What is beyond budgeting
Greater use of rolling budgets, non financial targets, budgets set locally
What is the limitations of linear regression?
Assumes relationship between variables
Measures relationships between two variables
What is a time series analysis
Uses moving averages to create a trend line over time
What is cyclical variations
Cycle of booms and slumps
What is season variations
Regular variations around trend over a fixed period of time
What is residual variations
Irregular, random fluctuations in data
How do you calculate trend
High low
Linear regression
Moving averages
