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Chapter1Accountingformanagement

YES NO

Control 对

Plan 对

Co-ordinate 对

Make decisions 对

Motivate 对

多做几道

Explain what is meant by standard costing

Explain what is meant by a standard cost

Describe four types of standard.

Explain what is meant by a standard hour.

Give five possible sources of information from which a standard materials price may be estimated.

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Pliant pic produces cars and motorbikes. The company is split into four different divisions:Car sales division - this department's manager has been given responsibility for selling the cars, as well as keeping control of the division's costs.Motorbike sales division - this department's manager has been given responsibility for selling the motorbikes as well as controlling divisional costs. In addition, he has been told to plan what assets he should purchase for the coming year.Manufacturing division - this division makes the cars and bikes and passes them to the finishing division. The divisional manager is only responsible for controlling the division's costs.Finishing division - this division tests the cars and cleans them ready to be sold. They transfer the goods to the sales divisions and charge the sales divisions a set price, which is set by the finishing division's manager. The manager is also responsible for managing the division’s costs as well as the investment in divisional assets.Are these centres being operated as a cost, profit or investment centre?Division Cost centre Profit centre Investment centreCar sales Motorbike sales Manufacturing Finishing
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