ACCA FOUNDATION IN MANAGEMENT ACCOUNTING

NGUYEN LAM BAO TRAN, ACCA FOUNDATION IN MANAGEMENT ACCOUNITNG MA1, MA2, F2)
FOUNDATION IN MANAGEMENT
ACCOUNTING (MA1, MA2, F2)
Lecturer: NGUYEN LAM BAO TRAN, ACCA

Contents
Chapter 1: ............................................................................................................................................................................... 1
NATURE OF BUSINESS ORGANIZATION AND ACCOUNTING SYSTEM ..................................................................................... 1
1. Definition of Organization ........................................................................................................................................... 1
2. Type of Organization Charts ........................................................................................................................................ 2
3. Function and Use of manual of policies, procedures and best practices .................................................................... 2
4. Main types of business transactions and key personnel involved .............................................................................. 3
5. The need for effective control over transactions ........................................................................................................ 4
6. Principles and practice of double entry bookkeeping ................................................................................................. 4
7. The use of ledger and book of prime entries .............................................................................................................. 5
8. Integrated accounting system and interlocking accounting system ........................................................................... 6
9. Computerised Accounting System .............................................................................................................................. 6
Chapter 2: Management Information ..................................................................................................................................... 8
1. Purpose of Management Information: ....................................................................................................................... 8
2. Data and Information .................................................................................................................................................. 8
3. The characteristics of useful management information ............................................................................................. 9
4. Source of information ............................................................................................................................................... 10
5. Limitation of cost and management accounting ....................................................................................................... 10
6. Role of trainee accountant in cost and management accounting ............................................................................. 11
7. Suitable formats for communicating management information .............................................................................. 16
8. Suitable formats for communicating management information .............................................................................. 19
9. Charts and Graphs ..................................................................................................................................................... 20
Chapter 3: Source Documents .............................................................................................................................................. 22
1. Cost/Management Accounting versus Financial Accounting .................................................................................... 22
2. The material control cycle ......................................................................................................................................... 22
3. The use of codes in categorising and processing transactions .................................................................................. 24
4. Computer System ...................................................................................................................................................... 27
Chapter 4: Cost Classification................................................................................................................................................ 36
1. The nature and types of cost classification ............................................................................................................... 36
2. Variable, fixed, semi-variable and stepped fixed cost ................................................... Error! Bookmark not defined.
3. Cost Classification of Materials and Labour .............................................................................................................. 40
4. Absorption Costing and Marginal Costing ................................................................................................................. 41
5. Calculation of a product/service ............................................................................................................................... 43
6. High-low Method ...................................................................................................................................................... 43
7. The effect of activity level on unit cost ..................................................................................................................... 44

Chapter 5: ............................................................................................................................................................................. 45
Cost Unit, Cost Centres, Profit Centres and Investment Centres .......................................................................................... 45
1. Cost Unit:................................................................................................................................................................... 45
2. Cost Centres: ............................................................................................................................................................. 45
3. Profit Centres ............................................................................................................................................................ 46
4. Investment Centres ................................................................................................................................................... 46
5. Performance Measures for Cost Centres .................................................................................................................. 47
6. Performance Measures for Profit Centres ................................................................................................................ 48
7. Performance Measures for Investment Centres ....................................................................................................... 49
Chapter 6: Accounting for Materials ..................................................................................................................................... 50
1. Material Cost Classification: ...................................................................................................................................... 55
2. Accounting for Material ............................................................................................................................................ 55
3. Inventory Valuation .................................................................................................................................................. 62
4. The need for inventory.............................................................................................................................................. 67
5. Inventory Management ............................................................................................................................................ 67
6. The Economic Order Quantity (EOQ) ........................................................................................................................ 68
Chapter 7: Accounting for Labour ......................................................................................................................................... 71
1. Remuneration Method.............................................................................................................................................. 71
2. Accounting for Labour ............................................................................................................................................... 74
3. Utilisation, production volume and idle time ratios ................................................................................................. 76
4. Labour Turnover ........................................................................................................................................................ 77
Chapter 8: Accounting for Overheads ................................................................................................................................... 79
1. Overheads: ................................................................................................................................................................ 80
2. Cost allocation and Cost apportionment: ................................................................................................................. 80
3. Re-apportionment:......................................................................................................... Error! Bookmark not defined.
4. More on service department costs: reciprocal services ................................................. Error! Bookmark not defined.
5. Absorption rates........................................................................................................................................................ 82
6. Over/under Absorption ............................................................................................................................................. 83
Chapter 9: Spreadsheet ........................................................................................................................................................ 94
1. Spreadsheet System .................................................................................................................................................. 94
2. Role of spreadsheet .................................................................................................................................................. 94
3. Information needed in spreadsheet .......................................................................................................................... 95
4. Formatting tools:....................................................................................................................................................... 95
5. Formulate: ................................................................................................................................................................. 96
6. Summarizing and analysis of spreadsheet data: ....................................................................................................... 96

7. Printing Spreadsheets: .............................................................................................................................................. 98
Chapter 10: Job, Batch and Process Costing ......................................................................................................................... 99
1. Job Costing ................................................................................................................................................................ 99
2. Batch Costing........................................................................................................................................................... 101
3. Process Costing........................................................................................................................................................ 102
4. Framework to deal with process costing................................................................................................................. 103
5. Process Costing – In details: .................................................................................................................................... 104
6. Joint and By-products: ............................................................................................................................................ 109
7. Joint and By-product: .............................................................................................................................................. 110
Chapter 11: Cost-Volume-Profit Analysis............................................................................................................................ 112
1. Break-even calculation: .................................................................................................. Error! Bookmark not defined.
2. Margin of Safety: ............................................................................................................ Error! Bookmark not defined.
3. Break-even Chart and PV Chart ...................................................................................... Error! Bookmark not defined.
4. Achieve target profit ...................................................................................................... Error! Bookmark not defined.
Chapter 12: Short term Decision Making ............................................................................................................................ 120
1. Limiting factors:....................................................................................................................................................... 120
2. Limiting factor with make-buy decision .................................................................................................................. 121
122
3. Discontinuing operations ........................................................................................................................................ 122
4. Relevant cost: .......................................................................................................................................................... 123
Chapter 13: Capital Investment Appraisal .......................................................................................................................... 126
1. Discounted Cash Flow ............................................................................................................................................. 150
2. Present Value and Annuity Table ............................................................................................................................ 152
3. Net present value approach .................................................................................................................................... 153
4. Internal rate of return (IRR) .................................................................................................................................... 155
5. Payback period ........................................................................................................................................................ 157
Chapter 14: Cash Management........................................................................................................................................... 163
1. Profit vs Cash: .......................................................................................................................................................... 163
2. Working capital cycle: ............................................................................................................................................. 163
3. Treasury Management: ........................................................................................................................................... 164
4. Raising Capital: ........................................................................................................................................................ 164
5. Investing surplus fund: ............................................................................................................................................ 165
6. Interest rate calculation: ................................................................................................ Error! Bookmark not defined.
7. Types of payments: ................................................................................................................................................. 166
8. Cash flow forecast: .................................................................................................................................................. 166

9. Seasonal Variation: ........................................................................................................ Error! Bookmark not defined.
Chapter 15: Information for Comparison.................................................................................. Error! Bookmark not defined.
1. Feedback and feedforward control: ........................................................................................................................ 168
2. Flexible budget: .............................................................................................................. Error! Bookmark not defined.
3. Variances: ....................................................................................................................... Error! Bookmark not defined.
4. Causes of Variances: ....................................................................................................... Error! Bookmark not defined.
5. Investigation of variances: ............................................................................................. Error! Bookmark not defined.
Chapter 1:
NATURE OF BUSINESS ORGANIZATION AND ACCOUNTING SYSTEM
1. Definition of Organization
 Departments within organization:
1|Pag e
2. Type of Organization Charts

 Functional Organization
 Divisional Organization
3. Function and Use of manual of policies, procedures and best practices
2|Pag e
4. Main types of business transactions and key personnel involved
3|Pag e
5. The need for effective control over transactions
6. Principles and practice of double entry bookkeeping
4|Pag e
7. The use of ledger and book of prime entries
5|Pag e
8. Integrated accounting system and interlocking accounting system
9. Computerised Accounting System
6|Pag e
7|Pag e
Chapter 2: Management Information
1. Purpose of Management Information:
2. Data and Information
8|Pag e
3. The characteristics of useful management information
9|Pag e
4. Source of information
5. Limitation of cost and management accounting
10 | P a g e
6. Role of trainee accountant in cost and management accounting
7. Managerial process of decision making and control
11 | P a g e
12 | P a g e
7. Strategic, Tactical and Operational Planning
8. Classification of Centres
13 | P a g e
9. Management Accounting and Management Information
14 | P a g e
15 | P a g e
10. Suitable formats for communicating management information
16 | P a g e
17 | P a g e
18 | P a g e
11. Suitable formats for communicating management information
19 | P a g e
12. Charts and Graphs

 Bar Charts
20 | P a g e
21 | P a g e
Chapter 3: Source Documents and Source of Data
1. Cost/Management Accounting versus Financial Accounting
2. The material control cycle
22 | P a g e
23 | P a g e
3. The use of codes in categorising and processing transactions
24 | P a g e
 Different methods of coding
25 | P a g e
26 | P a g e
4. Computer System
27 | P a g e
1. Types of data
2. Sources of Data
Internal Source
28 | P a g e
External Source
 Secondary Data
29 | P a g e
 Internet
 Economic Environment
30 | P a g e
1. Sampling and Sampling Method
31 | P a g e
 Random Sampling
 Sampling Frames
32 | P a g e
 Stratified Random Sampling
 Systematic Sampling
33 | P a g e
 Multistage Sampling
 Cluster Sampling
34 | P a g e
 Quota Sampling
35 | P a g e
Chapter 4: Cost Classification
1. The nature and types of cost classification
36 | P a g e
37 | P a g e
2. Cost Behaviour
38 | P a g e
39 | P a g e
3. Cost Classification of Materials and Labour

 Direct and Indirect Material
 Direct and Indirect Labour
40 | P a g e
 Production expenses
4. Absorption Costing and Marginal Costing
41 | P a g e
 Absorption Costing
 Marginal Costing
42 | P a g e
5. Calculation of a product/service
6. High-low Method
43 | P a g e
7. The effect of activity level on unit cost
44 | P a g e
Chapter 5:
Cost Unit, Cost Centres, Profit Centres and Investment Centres
1. Cost Unit:
2. Cost Centres:
45 | P a g e
3. Profit Centres
4. Investment Centres
46 | P a g e
5. Performance Measures for Cost Centres
 Efficiency
 Capacity utilization
 Production volume/Acitivity
47 | P a g e
6. Performance Measures for Profit Centres
48 | P a g e
7. Performance Measures for Investment Centres
49 | P a g e
Chapter 5: Business Mathematic
1. Expected Value
50 | P a g e
2. Linear Regression Analysis
51 | P a g e
3. Correlation
52 | P a g e
53 | P a g e
4. Chapter Summary
54 | P a g e
Chapter 7: Accounting for Materials
1. Material Cost Classification:
2. Accounting for Material
55 | P a g e
56 | P a g e
3. Introduction and Accounting Procedure
4. Inventory Counting
 Free Inventory
57 | P a g e
58 | P a g e
 Inventory Codes
 Inventory Count
59 | P a g e
 Obsolete
60 | P a g e
 Accounting for Materials
61 | P a g e
5. Inventory Valuation
 In case of Inflation
62 | P a g e
 FIFO (First In, First Out)
63 | P a g e
 LIFO (Last In, First Out)
64 | P a g e
Change from LIFO to FIFO or from FIFO to LIFO
 AVCO (cumulative weighted average pricing)

Cummulative weighted average
65 | P a g e
Periodic weighted average
66 | P a g e
6. The need for inventory
7. Inventory Management
67 | P a g e
8. The Economic Order Quantity (EOQ)
68 | P a g e
10. Stock-out Cost
11. The costs of inventory
69 | P a g e
70 | P a g e
Chapter 7: Accounting for Labour
1. Remuneration Method
71 | P a g e
High-day rate system
Individuals
B
o
n
u
s
/
72 | P a g e
Incentive scheme
73 | P a g e
Group Bonus Scheme
2. Accounting for Labour
 Payroll Department
74 | P a g e
 Idle Time
75 | P a g e
3. Utilisation, production volume and idle time ratios
76 | P a g e
4. Labour Turnover
77 | P a g e
1. Labour Efficiency, Capacity and Production Volume Ratios
 Labour Efficiency Ratio
 Labour Capacity Ratio
78 | P a g e
 Labour Production Volume Ratio
 Overtime and Overtime Premium
79 | P a g e
Chapter 8: Accounting for Overheads
1. Overheads:
2. Absorption Costing:
 Absorption Costing Stage
80 | P a g e
Allocation
Apportionment:
Step 1: Base of Apportionment
81 | P a g e
 Step 2: Apportion Service Department Costs
3. Absorption rates
82 | P a g e
4. Over/under Absorption
83 | P a g e
84 | P a g e
Chapter 9: Absorption and Marginal Costing
1. Marginal Costing
85 | P a g e
2. The effect of absorption costing and marginal costing on inventory and profit calculation
86 | P a g e
Reconciliation profits – A shortcut
87 | P a g e
 Absorption Costing Income Statement
88 | P a g e
 Marginal Absorption Costing Income Statement
3. Contribution to Sale Ratios and Breakeven points
89 | P a g e
90 | P a g e
4. Margin of Safety and Target Profits
5. Breakeven Charts
 Traditional Chart
91 | P a g e
 Contribution Break-even Chart
92 | P a g e
 P/V Chart
6. Chapter Summary
93 | P a g e
Chapter 9: Spreadsheet
1. Spreadsheet System
2. Role of spreadsheet
94 | P a g e
3. Information needed in spreadsheet
4. Formatting tools:
95 | P a g e
5. Formulate:
6. Summarizing and analysis of spreadsheet data:

 Sorting:
96 | P a g e
 Ranking
 Filtering
97 | P a g e
7. Printing Spreadsheets:
98 | P a g e
Chapter 10: Job, Batch and Process Costing
1. Job Costing
99 | P a g e
Document in Costing Sytem
Rectification Costs
100 | P a g e
2. Batch Costing
3. Service Costing
101 | P a g e
4. Process Costing
102 | P a g e
5. Framework to deal with process costing
103 | P a g e
6. Process Costing – In details:
 At Scrap Value
104 | P a g e
 With Abnormal Losses and Gains
105 | P a g e
 Opening Work-in-progress (WIP)

FIFO
106 | P a g e
Weighted Average Costing of Production
107 | P a g e
 Closing WIP
108 | P a g e
7. Joint and By-products:
109 | P a g e
8. Joint and By-product:
 Accounting Treatment of By-Products
110 | P a g e
 Accounting Treatment of Joint Products
 Process Accounts for By-Products
111 | P a g e
 Process Accounts for Joint Products and By-Products
112 | P a g e
Chapter 11: Alternative Costing Principles
1. ABC
 Advantages of ABC
 Disadvantage of ABC
113 | P a g e
 Calculation of ABC
2. Total Quality Management
114 | P a g e
 Cost of Quality
 Total Quality Management
115 | P a g e
 Element of Quality-related costs
 Measurement of non-financial performance
116 | P a g e
3. Life Cycle Costing
 Value of Life Cycle Costing
117 | P a g e
 Product Life Cycle
4. Target Costing
 Calculation of Target Costing
118 | P a g e
119 | P a g e
Chapter 12: Short term Decision Making
1. Limiting factors:
 Ranking
120 | P a g e
2. Limiting factor with make-buy decision
121 | P a g e
3. Discontinuing operations
122 | P a g e
4. Relevant cost:
123 | P a g e
124 | P a g e
125 | P a g e
Chapter 12: Budgeting
1. Forecast
 Components of time series
Finding the trend
126 | P a g e
Finding the seasonal variations (additive model)
127 | P a g e
Finding the seasonal variation (multiple/proportional model)
 Deseasonalisation
2. Sale Forecasting
 Time Series Analysis
 U
s
i
n
g
128 | P a g e
Index Number
Weighted Aggregate Indices
129 | P a g e
 Laspeyre Indices
Price Index
Quantity Index
 Paasche Indices
Price Index
Quantity Index
Which to use?
 Fisher’s Ideal Index
130 | P a g e
 Limitation of Using Indices
3. Retail Prices Index (RPI) and Consumer Prices Index (CPI)
131 | P a g e
Chapter 13: Budgeting
1. Planning and control
Budgeting Planning and Control System
132 | P a g e
2. Fixed and Flexed Budget
3. Administration of Budget
133 | P a g e
 Budget Committee
 Budget Preparation Process
134 | P a g e
 Functional Budget
135 | P a g e
 Sale Budget
 Production Budget
 Material Budget
 Labour Budget
 Overhead Budget
136 | P a g e
 Summary
137 | P a g e
Cash Budget
 Potential Cash Positions
138 | P a g e
4. Budgeted Income Statement and Statement of Financial Position
139 | P a g e
5. Master Budget
For Example
140 | P a g e
141 | P a g e
142 | P a g e
143 | P a g e
6. Behavioural Implication of Budgeting
 Poor Attitudes when Setting Budget
144 | P a g e
 Poor Attitudes when Putting Plans into Actions
 Pay as a motivator
7. Participation and Performance Evaluation
145 | P a g e
 Imposed/Top-down Budget
 Participative Budget
146 | P a g e
 Performance Evaluation
Budgetary Slack
8. The Use of Budget as Target
147 | P a g e
9. Motivation
148 | P a g e
 Profit-Sharing Scheme
 Incentive Schemes involving shares
 Value Added Incentive Scheme
149 | P a g e
Chapter 13: Capital Investment Appraisal
1. Discounted Cash Flow
150 | P a g e
Norminal Rate of Interest
 Discounted Cash Flow
Effective Rate of Interest
151 | P a g e
2. Present Value and Annuity Table
152 | P a g e
3. Net present value (NPV) approach
153 | P a g e
154 | P a g e
4. Internal rate of return (IRR)
 IRR calculation
155 | P a g e
Advantages and Disadvantages
156 | P a g e
5. Payback period
 Basic payback period
 Disadvantages
 Discounted Payback period
157 | P a g e
 Discounted Payback Period
Annuity
Perpetuity
158 | P a g e
6. Relevant and Non-Relevant Costs
159 | P a g e
Other Relevant Cost Terms
 Non-Relevant Costs
160 | P a g e
 Rule of identifying relevant costs
Materials
Overhead
Labour
161 | P a g e
Non-current Asset
 Summary
162 | P a g e
Chapter 14: Cash Management
1. Profit vs Cash:
2. Working capital cycle:
163 | P a g e
3. Treasury Management:
4. Raising Capital:
164 | P a g e
5. Investing surplus fund:
165 | P a g e
6. Types of payments:
7. Cash flow forecast:
 Price inflation:
 Seasonal Fluctuation and Trend:
166 | P a g e
Chapter 15: Standard Costing
1. Standard Cost
167 | P a g e
2. Cost Standards
Feedback and feedforward control:
168 | P a g e
Chapter 16: Variance Analysis
1. Variance
2. Sale Variance
 Selling Price Variance
 Sale Volume Variance
169 | P a g e
 Possible Causes of Sale Variance
3. Direct Material Variance
170 | P a g e
 Possible Cause of Direct Materials Price Variance
 Direct Materials Usage Variance
 Material Variance with Opening and Closing Inventory
4. Labour Variance
171 | P a g e
 Possible Causes of Labour Rate Variance
 Possible Causes of Labour Efficiency Variance
172 | P a g e
5. Variable Overhead Variance
 Possible Causes of Variable Overhead Expenditure Variances
 Possible Causes of Variable Overhead Expenditure Variances
6. Fixed Production Overhead Variance
173 | P a g e
 Fixed Overhead Expenditure Variance
Possible Causes of Fixed Overhead Expenditure Variance
174 | P a g e
 Fixed Overhead Volume Variance
Possible Causes of Fixed Overhead Volume Variance
 Fixed Overhead Volume Capacity Variance
 Fixed Overhead Volume Efficiency Variance
175 | P a g e
 Remember
 Total Variance
 General Causes
176 | P a g e
 Variance Analysis
177 | P a g e
7. Control Action
8. Operating Statement
178 | P a g e
 Absorption Costing Operating Statement
179 | P a g e
 Marginal Costing Operating Statement
180 | P a g e
9. Summary
181 | P a g e
Chapter 17: Performance Measurement
1. Performance Measurement
 Mission Statement
182 | P a g e
 Goal and Objectives
Commercial Goals and Objectives
Critical Success Factor (CSF)
 Short-termism
183 | P a g e
Method to encourage long-term view
184 | P a g e
 Link between Mission Statement and KPIs
2. Performance Measures
 Financial Performance Measures
185 | P a g e
 Non-financial Performance Measures
 Economy, Efficiency and Effectiveness
Indicator to measure 3Es
186 | P a g e
3. Measuring profitability
 Net Profit Margin
 Gross Profit Margin
 Return on Capital Employed (ROCE)
 Asset Turnover
187 | P a g e
4. Measuring Liquidity
 Current Ratio
 Quick Ration (Acid Test)
5. Efficiency Ratios
 Inventory Turnover Periods
 Receivables Payment Period
 Payables Payment Period
188 | P a g e
6. Gearing
 Gearing Ratio
 Interest Cover Ratio
7. Limitation of Measures
8. External Considerations
 Economy and Market
189 | P a g e
 Government
9. Performance Measurement for Manufacturing

 Sale
190 | P a g e
 Materials, Labour: Using Standard Hour and Variance Analysis
 Effeciency, Capacity and Activity Ratios
Capacity Ratio
Efficiency Ratio
Activity Ratio
 Cost
191 | P a g e
 Quality
 Time
192 | P a g e
 Innovation
10. Performance Measures for Service
 Financial Performance
193 | P a g e
 Quality of Service
 Flexibility
194 | P a g e
 Resource Utilisation
 Innovation
 Six Dimensions
195 | P a g e
11. Perfomance Measurements for non-profit-seeking organisations
196 | P a g e
197 | P a g e
12. Management Performance Measurements
13. ROI and RI
198 | P a g e
 Disadvantages
14. Non-financial Objectives
199 | P a g e
15. Balanced Scorecard
 Advantages
200 | P a g e
 Disadvantages
16. Benchmarking
201 | P a g e
 Benefits
 Drawbacks
17. Cost Management

 Cost control and Cost Reduction
202 | P a g e
 Method of Cost Reduction
Labour Cost
203 | P a g e
 Value Analysis
204 | P a g e
Value
205 | P a g e
Carrying Out a Value Analysis
206 | P a g e

ACCA FOUNDATION IN MANAGEMENT ACCOUNTING

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NGUYEN LAM BAO TRAN, ACCA FOUNDATION IN MANAGEMENT ACCOUNITNG MA1, MA2, F2)

Lecturer: NGUYEN LAM BAO TRAN, ACCA

7. The effect of activity level on unit cost ..................................................................................................................... 44

6. Summarizing and analysis of spreadsheet data: ....................................................................................................... 96

8. Cash flow forecast: .................................................................................................................................................. 166

NATURE OF BUSINESS ORGANIZATION AND ACCOUNTING SYSTEM

 Departments within organization:

2. Type of Organization Charts

3. Function and Use of manual of policies, procedures and best practices

4. Main types of business transactions and key personnel involved

5. The need for effective control over transactions

6. Principles and practice of double entry bookkeeping

7. The use of ledger and book of prime entries

8. Integrated accounting system and interlocking accounting system

9. Computerised Accounting System

Chapter 2: Management Information

1. Purpose of Management Information:

2. Data and Information

3. The characteristics of useful management information

5. Limitation of cost and management accounting

6. Role of trainee accountant in cost and management accounting

7. Managerial process of decision making and control

7. Strategic, Tactical and Operational Planning

9. Management Accounting and Management Information

10. Suitable formats for communicating management information

11. Suitable formats for communicating management information

12. Charts and Graphs

Chapter 3: Source Documents and Source of Data

1. Cost/Management Accounting versus Financial Accounting

2. The material control cycle

3. The use of codes in categorising and processing transactions

 Different methods of coding

1. Sampling and Sampling Method

 Stratified Random Sampling

Chapter 4: Cost Classification

1. The nature and types of cost classification

3. Cost Classification of Materials and Labour

 Direct and Indirect Labour

4. Absorption Costing and Marginal Costing

7. The effect of activity level on unit cost

Cost Unit, Cost Centres, Profit Centres and Investment Centres

5. Performance Measures for Cost Centres

6. Performance Measures for Profit Centres

7. Performance Measures for Investment Centres

Chapter 5: Business Mathematic

2. Linear Regression Analysis

Chapter 7: Accounting for Materials

1. Material Cost Classification:

2. Accounting for Material

3. Introduction and Accounting Procedure

 Accounting for Materials

 FIFO (First In, First Out)

 LIFO (Last In, First Out)

Change from LIFO to FIFO or from FIFO to LIFO

 AVCO (cumulative weighted average pricing)

Periodic weighted average

6. The need for inventory

8. The Economic Order Quantity (EOQ)

10. Stock-out Cost

11. The costs of inventory

Chapter 7: Accounting for Labour

High-day rate system

Group Bonus Scheme