Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
1.2 Cost/Management Accounting: The twenty-first Century Paradigm
Transcript of 1.2 Cost/Management Accounting: The twenty-first Century Paradigm
Nur Adila (1100720)
Mumtaz (1100721) Paradigm A: There definitely seems to be a place in management accounting for the more refined and exacting calculations of Paradigm ABC.
They were define the solution what the volume activity should and how to get desired profit be determined
So there are established this four paradigms that really effective.
But that place seems better suited in combination with Paradigm D and perhaps Paradigm B as well, especially as we proceed to the twenty-first century. In Paradigm B they used the distinction between fixed and variable cost which lead to the cost volume profit analysis.
There is not much seem to change between Paradigm A and B compared the distinction between fixed and variable cost.
From the reveals a refinement of one of the issue of contention we found that, variable cost per unit are determined by engineering standards and analytic techniques.
Many variable costs have become more fixed over time.
Variable cost that derive from engineering standards and analytic techniques leaves us with only the fixed costs to consider when determining the volume of activity to devide by in deriving per-unit costs. In this paradigm, two additional variable cost was designed to improve the accuracy of a total unit cost and also to improve the determination of selling prices and product mix decisions.
This additional variable cost relate to product complexity and product diversity.
There are three elements of variable manufacturing cost under ABC.
ABC is more accurate version of absorption costing that nothing more than updated and revised.
But, the advocates of ABC almost ignored the significance of Paradigm B’s direct costing.