Subjects
Biology
Chemistry
AP Chemistry
English
AP English Literature
FABM
Dec 18, 2025
137
27 pages
sheshe @sheshe_
Ever wondered how businesses make smart financial decisions and keep track of their costs? Management accounting is like... Show more
Think of management accounting as your business toolkit that helps companies make smart decisions with their limited resources. It's all about using financial info to plan better and control costs more effectively.
Management functions work like a cycle planning sets your goals, organizing aligns your resources, controlling evaluates performance, and communicating keeps everyone informed. Companies also need a clear vision (where they want to be in the future) and mission (their core purpose).
There are three levels of management systems. Operational level handles routine, structured decisions based on set rules. Management level deals with semi-structured decisions that need some judgment calls. Strategic level tackles complex, unstructured decisions requiring expertise and wisdom.
The big difference between financial accounting and management accounting is pretty straightforward. Financial accounting follows strict rules (like GAAP) and creates reports for outsiders quarterly or annually. Management accounting is flexible, focuses on internal decisions, uses both historical and future data, and emphasizes timeliness over perfect precision.
Quick Tip Remember that controllership handles recording and reporting (the "paperwork"), while treasurership manages actual money and assets (the "cash flow").
Understanding how costs behave is like predicting how your expenses change when you produce more or less stuff. This knowledge helps you make better pricing and production decisions.
Cost behavior follows three main patterns. Fixed costs stay the same total amount regardless of production (like rent), but cost less per unit as you make more. Variable costs increase as production goes up (like materials), but stay constant per unit. Mixed costs have both fixed and variable components.
The cost function y = a + bx is your formula for predicting total costs. Here, 'y' is total cost, 'a' is fixed costs, 'b' is variable cost per unit, and 'x' is your activity level. It's like a recipe that tells you exactly what your costs should be.
Several methods help you analyze mixed costs. The high-low method uses just the highest and lowest activity points to find your cost pattern. Regression analysis is more sophisticated - it finds the "line of best fit" using all your data points. The graphic method lets you visually plot costs and draw a line through the pattern.
Reality Check These methods work best within the "relevant range" - don't expect the same cost patterns if you suddenly triple your production!
Correlation analysis helps you figure out how strongly two things are related - like whether higher production really means higher costs. It's basically measuring if your cost predictions are reliable.
The coefficient of correlation (r) ranges from +1.0 to -1.0. A positive correlation means both variables move in the same direction . A negative correlation means they move opposite ways. Zero means there's no predictable relationship.
Coefficient of determination (r²) is even more useful because it shows how well your independent variable predicts the dependent variable. If r² is 0.81 (81%), it means your activity level explains 81% of your cost changes - that's pretty reliable for making decisions.
Remember that correlation doesn't prove cause and effect. Just because two things move together doesn't mean one causes the other. However, if your r² is above 0.80 (80%), you can feel confident using that data for planning and budgeting decisions.
Student Success If you see r = 0.90, quickly square it to get r² = 0.81. Since this exceeds 80%, you know the relationship is strong enough to trust!
CVP analysis is your profit planning superpower - it shows exactly how changes in costs, volume, and prices affect your bottom line. Think of it as a crystal ball for business profitability.
The breakeven point (BEP) is where you neither make money nor lose money. Calculate it using BEP (units) = Total Fixed Costs ÷ Contribution Margin per unit, or BEP (pesos) = Total Fixed Costs ÷ Contribution Margin Ratio. This tells you the minimum sales needed to avoid losses.
Margin of safety measures how much sales can drop before you start losing money. It's calculated as actual sales minus breakeven sales. The degree of operating leverage shows how sensitive your profits are to sales changes - higher leverage means bigger profit swings.
For sales mix situations with multiple products, you need weighted averages. Calculate the weighted average contribution margin, then use it in your standard BEP formulas. This helps you understand which product combinations are most profitable.
Pro Tip CVP analysis assumes everything stays constant except volume - in real life, watch out for changes in prices, costs, or product mix that could throw off your calculations!
These two costing methods treat fixed factory overhead (FFOH) completely differently, leading to different profit numbers and inventory values. Understanding both is crucial for making smart business decisions.
Variable costing treats FFOH as a period expense, meaning it hits your income statement immediately. Absorption costing treats FFOH as a product cost, so it goes into inventory first and becomes an expense only when you sell the product. This is why absorption costing usually shows higher inventory values.
When production equals sales, both methods give the same profit. When production exceeds sales, absorption costing shows higher profit because some FFOH gets "trapped" in unsold inventory. When sales exceed production, variable costing shows higher profit.
The choice between methods affects decision-making. Variable costing works better for internal decisions, pricing, and CVP analysis because it clearly separates fixed and variable costs. Absorption costing is required for external financial reporting and tax purposes because it follows GAAP rules.
Memory Trick Variable costing = immediate FFOH expense = better for internal decisions. Absorption costing = FFOH in inventory = required for external reports.
Standard costing sets performance benchmarks that help you control costs and evaluate efficiency. It's like having a GPS that tells you not just where you are, but whether you're on the most efficient route.
Standards come in two types ideal standards assume perfect conditions (rarely useful), while practical standards are challenging but achievable targets that motivate employees and help with budgeting. Smart companies use practical standards.
Variance analysis compares actual performance to standards. Material variances include price variance (purchasing manager's responsibility) and quantity variance (production manager's responsibility). Labor variances include rate variance and efficiency variance, both typically managed by production supervisors.
Calculate variances using simple formulas. Material Price Variance = × Actual Quantity. Material Quantity Variance = × Standard Price. Similar logic applies to labor rate and efficiency variances.
Success Strategy Always identify who's responsible for each variance - this makes it easier to take corrective action and improve future performance.
Factory overhead variances get more complex because overhead includes both fixed and variable components. You can analyze them using 1-way, 2-way, 3-way, or 4-way analysis depending on how detailed you want to get.
The 2-way analysis splits overhead variance into budget variance (actual vs. budgeted overhead) and volume variance (budgeted vs. applied overhead). The 4-way analysis breaks this down further into variable rate, fixed budget, variable efficiency, and fixed volume variances.
Material mix and yield variances help when you use multiple materials. Mix variance shows the cost impact of using different proportions of materials than planned. Yield variance measures whether you got the expected output from your material inputs.
Gross profit variance analysis examines why your gross profit changed from budget. It considers price factors (selling price changes), cost factors (cost changes), and volume factors (sales quantity changes). This helps identify whether profit changes came from pricing decisions, cost control, or sales performance.
Real-World Application Focus on significant variances only - investigating every small difference wastes time. Use the "management by exception" principle to prioritize your attention.
Budgeting is like creating a financial roadmap for your business - it shows where you plan to go and how you'll get there. Good budgets require cooperation from everyone and careful attention to accuracy over conservatism.
The master budget combines all your individual budgets into one comprehensive plan. It starts with the sales budget (your foundation), then builds the production budget, material budget, labor budget, and finally the budgeted income statement and cash budget.
Budget administration works best when top management leads the process to show its importance. The budget committee supervises and coordinates everything, making sure all departments work together toward common goals. Goal congruence ensures everyone pulls in the same direction.
Different budget types serve different purposes. Operational budgets cover day-to-day activities like sales and production. Financial budgets handle cash flow and capital expenditures. Strategic budgets are long-term, while tactical budgets are short-term and more detailed.
Key Insight Beware of "budgetary slack" - when managers deliberately underestimate revenues or overestimate costs to make their targets easier to hit. This defeats the purpose of challenging but achievable goals.
Flexible budgets adjust to different activity levels, making them more useful for performance evaluation than static budgets that assume one fixed activity level. Think of flexible budgets as having multiple scenarios built in.
Participatory budgeting involves employees in the budget process, leading to better buy-in and more realistic targets. Authoritative budgeting is faster but may miss important input from people actually doing the work. Most successful companies use a combination approach.
Zero-based budgeting makes managers justify every expense from scratch each period, rather than just adjusting last year's numbers. It's more work but prevents outdated expenses from continuing indefinitely. Continuous budgets constantly update by adding new periods and dropping old ones.
The budget process typically flows from strategic planning down to detailed operational budgets. Financial budgets include cash budgets (crucial for avoiding cash flow problems), capital expenditure budgets (for major purchases), and projected balance sheets and income statements.
Budget Reality Remember that budgets are planning tools, not straightjackets. They should be revised when significant changes occur, but not so often that they lose their control function.
Relevant costing helps you make smart business decisions by focusing only on costs and revenues that actually differ between alternatives. It's like filtering out the noise to see what really matters.
Relevant costs are future costs that differ between alternatives. Sunk costs (already spent) and costs that don't change between options are irrelevant. Opportunity cost - the benefit you give up by choosing one alternative over another - is always relevant and often overlooked.
Common decision types include make vs. buy , accept vs. reject special orders (accept if additional revenue exceeds additional costs), and continue vs. discontinue (continue if avoidable revenues exceed avoidable costs).
For sell vs. process further decisions, ignore joint costs (they're sunk) and compare additional processing costs to additional revenue. For product mix decisions with limited resources, prioritize products with the highest contribution margin per unit of the limiting factor.
Decision-Making Pro Tip Always use the differential approach - compare only the differences between alternatives. This saves time and reduces the chance of including irrelevant costs in your analysis.
Our AI companion is specifically built for the needs of students. Based on the millions of content pieces we have on the platform we can provide truly meaningful and relevant answers to students. But its not only about answers, the companion is even more about guiding students through their daily learning challenges, with personalised study plans, quizzes or content pieces in the chat and 100% personalisation based on the students skills and developments.
You can download the app in the Google Play Store and in the Apple App Store.
That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.
2
Smart Tools NEW
Transform this note into: ✓ 50+ Practice Questions ✓ Interactive Flashcards ✓ Full Mock Exam ✓ Essay Outlines
Master the three forms of quadratic equations and their key properties
MathApp Store
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think it’s very much worth it and you’ll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still don’t get it!!! In the end I think it’s worth it 😊👍 ⚠️Also DID I MENTION ITS FREEE YOU DON’T HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLY❗️❗️⚠️
Thomas R
iOS user
Knowunity is the BEST app I’ve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help🤍🤍
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.😋🩷🎀
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as I’ve seen! Geometry too!
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think it’s very much worth it and you’ll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still don’t get it!!! In the end I think it’s worth it 😊👍 ⚠️Also DID I MENTION ITS FREEE YOU DON’T HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLY❗️❗️⚠️
Thomas R
iOS user
Knowunity is the BEST app I’ve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help🤍🤍
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.😋🩷🎀
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as I’ve seen! Geometry too!
Paul T
iOS user
sheshe
@sheshe_
Ever wondered how businesses make smart financial decisions and keep track of their costs? Management accounting is like having a GPS for your company's money - it helps managers navigate through planning, controlling, and making profitable choices using data and... Show more
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Think of management accounting as your business toolkit that helps companies make smart decisions with their limited resources. It's all about using financial info to plan better and control costs more effectively.
Management functions work like a cycle: planning sets your goals, organizing aligns your resources, controlling evaluates performance, and communicating keeps everyone informed. Companies also need a clear vision (where they want to be in the future) and mission (their core purpose).
There are three levels of management systems. Operational level handles routine, structured decisions based on set rules. Management level deals with semi-structured decisions that need some judgment calls. Strategic level tackles complex, unstructured decisions requiring expertise and wisdom.
The big difference between financial accounting and management accounting is pretty straightforward. Financial accounting follows strict rules (like GAAP) and creates reports for outsiders quarterly or annually. Management accounting is flexible, focuses on internal decisions, uses both historical and future data, and emphasizes timeliness over perfect precision.
Quick Tip: Remember that controllership handles recording and reporting (the "paperwork"), while treasurership manages actual money and assets (the "cash flow").
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Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Understanding how costs behave is like predicting how your expenses change when you produce more or less stuff. This knowledge helps you make better pricing and production decisions.
Cost behavior follows three main patterns. Fixed costs stay the same total amount regardless of production (like rent), but cost less per unit as you make more. Variable costs increase as production goes up (like materials), but stay constant per unit. Mixed costs have both fixed and variable components.
The cost function y = a + bx is your formula for predicting total costs. Here, 'y' is total cost, 'a' is fixed costs, 'b' is variable cost per unit, and 'x' is your activity level. It's like a recipe that tells you exactly what your costs should be.
Several methods help you analyze mixed costs. The high-low method uses just the highest and lowest activity points to find your cost pattern. Regression analysis is more sophisticated - it finds the "line of best fit" using all your data points. The graphic method lets you visually plot costs and draw a line through the pattern.
Reality Check: These methods work best within the "relevant range" - don't expect the same cost patterns if you suddenly triple your production!
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Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Correlation analysis helps you figure out how strongly two things are related - like whether higher production really means higher costs. It's basically measuring if your cost predictions are reliable.
The coefficient of correlation (r) ranges from +1.0 to -1.0. A positive correlation means both variables move in the same direction . A negative correlation means they move opposite ways. Zero means there's no predictable relationship.
Coefficient of determination (r²) is even more useful because it shows how well your independent variable predicts the dependent variable. If r² is 0.81 (81%), it means your activity level explains 81% of your cost changes - that's pretty reliable for making decisions.
Remember that correlation doesn't prove cause and effect. Just because two things move together doesn't mean one causes the other. However, if your r² is above 0.80 (80%), you can feel confident using that data for planning and budgeting decisions.
Student Success: If you see r = 0.90, quickly square it to get r² = 0.81. Since this exceeds 80%, you know the relationship is strong enough to trust!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
CVP analysis is your profit planning superpower - it shows exactly how changes in costs, volume, and prices affect your bottom line. Think of it as a crystal ball for business profitability.
The breakeven point (BEP) is where you neither make money nor lose money. Calculate it using BEP (units) = Total Fixed Costs ÷ Contribution Margin per unit, or BEP (pesos) = Total Fixed Costs ÷ Contribution Margin Ratio. This tells you the minimum sales needed to avoid losses.
Margin of safety measures how much sales can drop before you start losing money. It's calculated as actual sales minus breakeven sales. The degree of operating leverage shows how sensitive your profits are to sales changes - higher leverage means bigger profit swings.
For sales mix situations with multiple products, you need weighted averages. Calculate the weighted average contribution margin, then use it in your standard BEP formulas. This helps you understand which product combinations are most profitable.
Pro Tip: CVP analysis assumes everything stays constant except volume - in real life, watch out for changes in prices, costs, or product mix that could throw off your calculations!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
These two costing methods treat fixed factory overhead (FFOH) completely differently, leading to different profit numbers and inventory values. Understanding both is crucial for making smart business decisions.
Variable costing treats FFOH as a period expense, meaning it hits your income statement immediately. Absorption costing treats FFOH as a product cost, so it goes into inventory first and becomes an expense only when you sell the product. This is why absorption costing usually shows higher inventory values.
When production equals sales, both methods give the same profit. When production exceeds sales, absorption costing shows higher profit because some FFOH gets "trapped" in unsold inventory. When sales exceed production, variable costing shows higher profit.
The choice between methods affects decision-making. Variable costing works better for internal decisions, pricing, and CVP analysis because it clearly separates fixed and variable costs. Absorption costing is required for external financial reporting and tax purposes because it follows GAAP rules.
Memory Trick: Variable costing = immediate FFOH expense = better for internal decisions. Absorption costing = FFOH in inventory = required for external reports.
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Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Standard costing sets performance benchmarks that help you control costs and evaluate efficiency. It's like having a GPS that tells you not just where you are, but whether you're on the most efficient route.
Standards come in two types: ideal standards assume perfect conditions (rarely useful), while practical standards are challenging but achievable targets that motivate employees and help with budgeting. Smart companies use practical standards.
Variance analysis compares actual performance to standards. Material variances include price variance (purchasing manager's responsibility) and quantity variance (production manager's responsibility). Labor variances include rate variance and efficiency variance, both typically managed by production supervisors.
Calculate variances using simple formulas. Material Price Variance = × Actual Quantity. Material Quantity Variance = × Standard Price. Similar logic applies to labor rate and efficiency variances.
Success Strategy: Always identify who's responsible for each variance - this makes it easier to take corrective action and improve future performance.
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Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Factory overhead variances get more complex because overhead includes both fixed and variable components. You can analyze them using 1-way, 2-way, 3-way, or 4-way analysis depending on how detailed you want to get.
The 2-way analysis splits overhead variance into budget variance (actual vs. budgeted overhead) and volume variance (budgeted vs. applied overhead). The 4-way analysis breaks this down further into variable rate, fixed budget, variable efficiency, and fixed volume variances.
Material mix and yield variances help when you use multiple materials. Mix variance shows the cost impact of using different proportions of materials than planned. Yield variance measures whether you got the expected output from your material inputs.
Gross profit variance analysis examines why your gross profit changed from budget. It considers price factors (selling price changes), cost factors (cost changes), and volume factors (sales quantity changes). This helps identify whether profit changes came from pricing decisions, cost control, or sales performance.
Real-World Application: Focus on significant variances only - investigating every small difference wastes time. Use the "management by exception" principle to prioritize your attention.
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Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Budgeting is like creating a financial roadmap for your business - it shows where you plan to go and how you'll get there. Good budgets require cooperation from everyone and careful attention to accuracy over conservatism.
The master budget combines all your individual budgets into one comprehensive plan. It starts with the sales budget (your foundation), then builds the production budget, material budget, labor budget, and finally the budgeted income statement and cash budget.
Budget administration works best when top management leads the process to show its importance. The budget committee supervises and coordinates everything, making sure all departments work together toward common goals. Goal congruence ensures everyone pulls in the same direction.
Different budget types serve different purposes. Operational budgets cover day-to-day activities like sales and production. Financial budgets handle cash flow and capital expenditures. Strategic budgets are long-term, while tactical budgets are short-term and more detailed.
Key Insight: Beware of "budgetary slack" - when managers deliberately underestimate revenues or overestimate costs to make their targets easier to hit. This defeats the purpose of challenging but achievable goals.
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Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Flexible budgets adjust to different activity levels, making them more useful for performance evaluation than static budgets that assume one fixed activity level. Think of flexible budgets as having multiple scenarios built in.
Participatory budgeting involves employees in the budget process, leading to better buy-in and more realistic targets. Authoritative budgeting is faster but may miss important input from people actually doing the work. Most successful companies use a combination approach.
Zero-based budgeting makes managers justify every expense from scratch each period, rather than just adjusting last year's numbers. It's more work but prevents outdated expenses from continuing indefinitely. Continuous budgets constantly update by adding new periods and dropping old ones.
The budget process typically flows from strategic planning down to detailed operational budgets. Financial budgets include cash budgets (crucial for avoiding cash flow problems), capital expenditure budgets (for major purchases), and projected balance sheets and income statements.
Budget Reality: Remember that budgets are planning tools, not straightjackets. They should be revised when significant changes occur, but not so often that they lose their control function.
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Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Relevant costing helps you make smart business decisions by focusing only on costs and revenues that actually differ between alternatives. It's like filtering out the noise to see what really matters.
Relevant costs are future costs that differ between alternatives. Sunk costs (already spent) and costs that don't change between options are irrelevant. Opportunity cost - the benefit you give up by choosing one alternative over another - is always relevant and often overlooked.
Common decision types include make vs. buy , accept vs. reject special orders (accept if additional revenue exceeds additional costs), and continue vs. discontinue (continue if avoidable revenues exceed avoidable costs).
For sell vs. process further decisions, ignore joint costs (they're sunk) and compare additional processing costs to additional revenue. For product mix decisions with limited resources, prioritize products with the highest contribution margin per unit of the limiting factor.
Decision-Making Pro Tip: Always use the differential approach - compare only the differences between alternatives. This saves time and reduces the chance of including irrelevant costs in your analysis.
Our AI companion is specifically built for the needs of students. Based on the millions of content pieces we have on the platform we can provide truly meaningful and relevant answers to students. But its not only about answers, the companion is even more about guiding students through their daily learning challenges, with personalised study plans, quizzes or content pieces in the chat and 100% personalisation based on the students skills and developments.
You can download the app in the Google Play Store and in the Apple App Store.
That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.
2
Smart Tools NEW
Transform this note into: ✓ 50+ Practice Questions ✓ Interactive Flashcards ✓ Full Mock Exam ✓ Essay Outlines
Master the three forms of quadratic equations and their key properties
MathApp Store
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think it’s very much worth it and you’ll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still don’t get it!!! In the end I think it’s worth it 😊👍 ⚠️Also DID I MENTION ITS FREEE YOU DON’T HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLY❗️❗️⚠️
Thomas R
iOS user
Knowunity is the BEST app I’ve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help🤍🤍
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.😋🩷🎀
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as I’ve seen! Geometry too!
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think it’s very much worth it and you’ll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still don’t get it!!! In the end I think it’s worth it 😊👍 ⚠️Also DID I MENTION ITS FREEE YOU DON’T HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLY❗️❗️⚠️
Thomas R
iOS user
Knowunity is the BEST app I’ve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help🤍🤍
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.😋🩷🎀
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as I’ve seen! Geometry too!
Paul T
iOS user
Practical Research
Science
Econ
Araling Panlipunan (AP)
Iba pa
DISS