New PDF release: ACCA F2 Management Accounting Essential text

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Sample text

A) The line would cross the y axis at the point (b) The gradient of the line is (c) The independent variable is (d) The dependent variable is Test your understanding 9 If the total cost of a product is given as: Y = 4,800 + 8x (a) The fixed cost is $ (b) The variable cost per unit is $ (b) The total cost of producing 100 units is $ 6 Cost objects, cost units and cost centres Analysing costs Management will require a variety of different cost summaries, including: • • • • • costs for a particular product ­ cost unit or cost object costs for use in the preparation of external financial reports costs for a particular department ­ cost centre costs that may be useful for decision making costs that are useful for planning and control.

Daily sales (units) Number of days 100 40 200 60 300 80 400 20 Required: Calculate the expected sales level in the future.  The profits from X, Y and Z are estimated to be $40,000, $60,000 and $100,000 respectively. The expected value to the company of the profits from all three contracts will be closest to ($000): A 40 B 60 C 90 D 100 KAPLAN PUBLISHING 43 Business mathematics 2 Limitations of the expected value technique There are a number of limitations of using the expected value technique to evaluate decisions.

48 KAPLAN PUBLISHING chapter 3 Expandable text The correlation coefficient An alternative to drawing a graph each time you want to know whether two variables are correlated, and the extent of the correlation if there is any, is to calculate the correlation coefficient (r) and to interpret the result.  It can therefore give an indication of how reliable the estimated linear function is for a set of data.  If we were to calculate the associated correlation coefficient we could get some idea of how reliable our estimated linear function was.

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ACCA F2 Management Accounting Essential text by Kaplan Publishing UK 

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