7 MANAGEMENT ACCOUNTING
After studying this chapter, you should:
- understand how to produce a budget and a cash flow forecast, and know how to monitor them;
- be able to calculate the unit cost of labour;
- understand the concept of overheads and the different ways in which they may be distributed;
- be able to determine how much it costs to produce a particular product or provide a specific service.
7.1 PLANNING AND MANAGEMENT INFORMATION
The last chapter was concerned with financial accounting, that is, with reports about the financial state of a company as a whole. Such reports are public and are required to meet standards set by the law and by stock exchanges. The information they contain is intended primarily for potential investors and trading ...