Ever wondered how to take the STING out of COSTING?... Let John and David guide you with their expertise to master the tricks of the "ABC". Through many years of practical experience ACMS assesses the management information requirements of our clients and provide specific information reports that enable Management to make strategic decisions and provide Management with useful performance measurement.
Activity Based Costing
Management accounting combines accounting, finance and management with the leading edge techniques needed to drive successful businesses.
Chartered management accountants (CMA):
advise managers about the financial implications of projects.
explain the financial consequences of business decisions.
formulate business strategy.
monitor spending and financial control.
conduct internal business audits.
explain the impact of the competitive landscape.
The management accounting skillset:
Analysis - CMA's analyse information and use it to make business decisions.
Strategy - CMA's formulate business strategies to create wealth and shareholder value.
Risk - CMA's identify and manage risk.
Planning - CMA's apply accounting techniques to plan and budget.
Communication - CMA's determine what information management needs and explain the numbers to non-financial managers.
These systems can be implemented on a departmental or company wide basis to enable management to make strategic decisions.
What is ABC?
Activity-Based Costing (ABC) is an accurate method of assigning costs to work activities, processes, products/services, customers, and lines of business. It is based on the notion that efforts required to produce products and services can be quantified and, therefore, assigned to the product or service. Similar to a bill of materials, products have a bill of activities required to deliver the product or service.
Capital expenditures (CAPEX or capex) are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year.
ACMS assists companies with budgeting in the following areas:
1. Income statement
2. Balance sheet
3. Capital budgeting
4. Special projects (calculation of payback period)
Working capital management and control
The process of managing activities and processes related to working capital. This level of management serves as a check and balances system to ensure that the amount of cash flowing into the business is enough to sustain the company's operations. This is an ongoing process that must be evaluated using the current level of assets and liabilities. Working capital management may involve implementing short-term decisions that may or may not carry over from one earnings period to the next. Implementing or improving stock management systems.
The administrative role of assessing the inventory of a business and making sure it is sufficient to meet consumer demand. The demands that a stock management process seeks to satisfy are affected by external and internal factors, and can be expressed using purchase order requests to help maintain appropriate inventory levels.