ACCA - F5 Performance Management: Study Text by BPP Learning Media PDF

By BPP Learning Media

ISBN-10: 0751763675

ISBN-13: 9780751763676

BPP studying Media s prestige as reliable ACCA authorized studying supplier content material potential our ACCA research Texts and perform & Revision Kits are reviewed via the ACCA reading workforce. BPP studying Media items offer you the examination focussed fabric you would like for examination good fortune.

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The projected cash flows over the full lives of customers or customer segments can be analysed to highlight the worth of customers and the importance of customer retention. It may take a year or more to recoup the initial costs of winning a customer, and this could be referred to as the payback period of the investment in the customer. Question Lifecycle costing Solaris specialises in the manufacture of solar panels. It is planning to introduce a new slimline solar panel specially designed for small houses.

It may be difficult to increase the price if customers are price sensitive and are not prepared to pay more. Costs could be reduced by analysing each part of the costs throughout the life cycle and actively seeking cost savings. For example, using different materials, using cheaper staff or acquiring more efficient technology. Chapter Roundup x Life cycle costing tracks and accumulates costs and revenues attributable to each product over the entire product life cycle. x A product life cycle can be divided into five phases.

Overheads that vary with some other activity (and not volume of production) should be traced to products using transaction-based cost drivers such as production runs or number of orders received x ABC has both advantages and disadvantages, and tends to be more widely used by larger organisations and the service sector. x Switching to ABC has implications for pricing, sales strategy, performance management and decision making. 2a: Activity based costing ~ Part A Specialist cost and management accounting techniques Quick Quiz 1 Choose the correct phrases.

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ACCA - F5 Performance Management: Study Text by BPP Learning Media

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