LECTURE THREE: COST CENTRES AND VARIANCE COMPARISON
by Nguyễn Hồng Lan Tiên
1. Controllable
2. Budgets comparison
3. The control cycle
4. Flexed budget
5. Variances
5.1. Variance reports
5.2. Uncontrollable variances
5.3. Favorable
5.4. Adverse
6. Variances calculations
6.1. Sales revenue variance:Total = volume variances + price variances
6.2. Cost variance:Total direct cost variance = Volume variance (ZERO in flexed budget) + Purchase price variance+ Efficiency of usage variance
7. Cost variance reason
8. Exception reporting
9. Controllable and uncontrollable variances
10. Feedback and Feedforward control system
11. Responsibility centres
11.1. Responsibility centre
11.2. Three types of responsibility centre
12. Cost centers
13. Cost centre measurements
13.1. Productivity
13.2. cost per unit
13.3. Cost per standard hour
13.4. Actual versus Budgeted performance
13.5. Ratios
14. Profit centers
15. Profit centre measurements
15.1. Profit margin = ( Net profit/Sales) x 100%
15.2. Gross profit margin = (Gross profit/Sales) x 100%
15.3. Cost profit margin = (Gross profit/Sales) x 100%
16. Ivenstment centers
17. Ivestment center measurement
18. Information comparison
18.1. Corresponding
18.2. Previous periods
18.3. Budgets
18.4. Forecasts
19. Previous period comparison
20. Forecasts comparison