Working Capital Control

Working capital is a key element in business success. Successful business is about investing in the right ideas, the right equipment, and the right people.

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Target Costing

Much literature cities Japanese companies developing and using target costing; Toyota, Honda and Nissan are such examples. In the US Caterpillar and Chrysler are examples

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Zero Base Budgeting 

Zero Base/ Priority Base Budgeting is defined in CIMA terminology as: “A method of budgeting whereby all activities are re-evaluated each time a budget is

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Controlled Behaviour

Professor Philip Dunn explains the behavioural aspects of budgetary control. Finance Staff together with Budget users need an awareness of how behaviour patterns are often shaped by the budgeting process, and why behavioural aspects are more to the fore in budgetary control than any other technique in management accounting.

CIMA’s definition of a budget is “a plan expressed in money. It is prepared and approved prior to the budget period and may show income expenditure and the capital to be employed. It may be drawn showing incremental effects on former budgeted or actual figures or complied by zero-base budgeting.”

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Activity Based Costing

Allocation of overhead is one of the problems that bedevils any form of costing. And the more sophisticated the business, the more difficult or arbitrary those allocations seem.
Businesses need to know the cost of their product so as to control those costs and get their pricing right. And adding up the raw material and cost of direct labour needed to manufacture a product may be relatively straightforward.

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