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    This document provides an agenda and information for a management accounting practical class. It discusses social charges, including definitions and how they are treated differently in management versus financial accounting. Specifically, management accounting spreads social charges equally over the year while financial accounting recognizes them when actually paid, leading to potential differences in period profit and loss statements between the two methods. It also provides formulas for calculating total and relevant social charges percentages and the difference in profit between financial and management accounting views due to social charges. Finally, it outlines an exercise on allocating costs to the proper functions of manufacturing, selling, and general/administrative for the profit and loss statement of a company called Metalex.

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    This document provides an agenda and information for a management accounting practical class. It discusses social charges, including definitions and how they are treated differently in management versus financial accounting. Specifically, management accounting spreads social charges equally over the year while financial accounting recognizes them when actually paid, leading to potential differences in period profit and loss statements between the two methods. It also provides formulas for calculating total and relevant social charges percentages and the difference in profit between financial and management accounting views due to social charges. Finally, it outlines an exercise on allocating costs to the proper functions of manufacturing, selling, and general/administrative for the profit and loss statement of a company called Metalex.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views8 pages

    Session 2 MA

    Uploaded by

    mr.rodri600
    This document provides an agenda and information for a management accounting practical class. It discusses social charges, including definitions and how they are treated differently in management versus financial accounting. Specifically, management accounting spreads social charges equally over the year while financial accounting recognizes them when actually paid, leading to potential differences in period profit and loss statements between the two methods. It also provides formulas for calculating total and relevant social charges percentages and the difference in profit between financial and management accounting views due to social charges. Finally, it outlines an exercise on allocating costs to the proper functions of manufacturing, selling, and general/administrative for the profit and loss statement of a company called Metalex.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 8

    Management

    Accounting
    Fall 2023

    TA Matilde Alves- matilde.alves@novasbe.pt

    Practical Class #2
    Agenda

    01 02
    THEORETICAL RECAP EXERCISE 5
    Social Charges The Metalex Company
    SOCIAL CHARGES
    Monetary fee that an employer must pay for each person that they employ.

    Examples:
     health benefits
     unemployment benefits
     disability insurance
     workers' compensation benefits
     retirement benefits
     life insurance
     Holiday pay
    SOCIAL CHARGES
    Management Accounting:
    Accounting various costs related with labour are aggregated in the
    theoretical social charges and spread equally along the year

    Financial Accounting:
    Accounting take costs exactly when those are paid, there are peaks
    during the year, in which social charges are higher than in the rest of the months

    This means in on one particular period there can be differences in P&L FA and P&L
    by function due to the way that social charges are differently incorporated.
    Relevant Formulas

    ்௢௧௔௟ ௌ௢௖௜௔௟ ஼௛௔௥௚௘௦


    %‫ ܔ܉ܑ܋ܗ܁ ܔ܉܋ܑܜ܍ܚܗ܍ܐ܂‬۱‫் =ܛ܍܏ܚ܉ܐ‬௢௧௔௟ ௌ௔௟௔௥௜௘௦ & ௐ௔௚௘௦ (for the year!)

    ΔπFA − by Function = Base Wages ∗ (% TSC − % RSC)

    Labour Costs of The Period = Wages + %TSC x Wages


    02
    Exercise 5

    Metalex Company
    EXERCISE 5- COSTS FOR P&L BY FUNCTION
     Manufacturing costs  all costs that mention “factory”, “manufacturing”,
    “production”. Costs happen in the factory.

     Selling costs  related with sales and marketing

     General & Administrative costs  all costs that mention “Headquarters”,


    “Office”, “Administrative”. Costs happen in the offices.
    EXERCISE 5- COSTS FOR P&L BY FUNCTION
    MANUFACTURING
    COSTS

    MANUFACTURING
    SELLING
    GENERAL & ADMIN

    MANUFACTURING
    SELLING
    GENERAL & ADMIN

    MANUFACTURING
    SELLING
    GENERAL & ADMIN

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