Understanding Accounts and Costs

The Capable Manager -- Book 13

The Open University

Publisher: The Open University, 1995

ISBN: 0-7492-4924-2

Synopsis:

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Table of Contents:

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• Session 1 First Ideas
• Introduction
• 1.1 Resources, Values and Accounting
• Managers control resources
• What values — whose values?
• Accounting statements
• 1.2 Managing the Transformation of Resources
• 'Is this operation sustainable?'
• Money values
• 1.3 Transformation and the Cycle of Production
• 1.4 Your Own Inputs and Outputs
• Identifying your inputs
• Identifying your outputs
• Identifying your monetary inputs
• Identifying your monetary outputs
• Comparing money inputs and outputs
• 1.5 Video Activity
• Summary and objectives
• Session 2 Cash Flow
• Introduction
• 2.1 The Significance of Cash Flows
• Cash flows and core activities
• Cash flows arising from non-core activities
• Liquidity
• 2.2 Building Cash Flow Statements
• 2.3 Managing Cash Flows
• The cash, or working capital, cycle
• Working capital
• 2.4 Audio and PC Activities
• Summary and objectives
• Session 3 The Balance Sheet
• Introduction
• 3.1 What Does a Balance Sheet Show?
• Profit as a liability
• Assets and liabilities
• 3.2 Alternative Formats
• The vertical layout
• 3.3 The Accounting Balance
• The accounting equation
• Where is the working capital in the accounting equation?
• Summary and objectives
• Session 4 Accounting for Activities
• Introduction
• 4.1 Cash and Profit (Surplus)
• When profit is not the main goal
• 4.2 Profit Statement and Balance Sheets
• Extracting information
• 4.3 The Art of Accounting
• 'True and fair' depreciation
• True and fair valuation of stock
• The formal framework of accounting
• A self-governing community
• Accounting concepts
• 4.4 Video and PC Activities
• Summary and objectives
• Session 5 Costing Our Activities
• Introduction
• 5.1 Types of Cost
• Fixed and variable costs
• Direct and indirect costs
• 5.2 Apportioning and Absorbing Costs
• 5.3 Video, audio and PC Activities
• Summary and objectives
• Session 6 Contribution Costing
• Introduction
• 6.1 Understanding Contribution
• Operating leverage
• 6.2 Breaking Even
• The contribution margin
• 6.3 Alternatives to Absorption Costing
• Activity-based costing
• 6.4 Video and PC Activities
• Summary and objectives
• Session 7 Financial Aspects of Decisions
• Introduction
• 7.1 Relevant and Irrelevant Costs
• 7.2 Costing in Decisions
• Assessing product or service profitability
• The internal/external dilemma
• Utilising scarce resources
• 7.3 Costing in Pricing Decisions
• Cost-plus and rate of return pricing
• Summary and objectives