B(IZNUS)OBODDY

When using traditional total absorption costing it is important to identify activity cost drivers.

The balanced scorecard uses a mixture of financial and non-financial performance indicators.

The payback period generally does not use discounted cash flows. It is, however, possible to incorporate them into payback models.

The discount rate normally used to discount cash flows is the interest rate charged by the Central Bank.

There may be differences between accounting in different countries because of importance of factors such as history or technology.

Strategic management accounting is concerned principally with short-term operational decisions.

Break-even point is variable costs divided by contribution per unit.

When recovering costs for pricing we use total absorption costing. However, for stock valuation we use absorption costing or marginal costing.

Strategic choice may involve exploiting inherent strengths such as the business's products or customer base and/or external diversification through acquisition, merger or collaboration.

When using traditional total absorption costing it is important to identify activity cost drivers.

The accounting rate of return is the only investment appraisal technique that focuses on profits not cash flows.

A cost is an actual past expenditure.

The two main branches of cost accounting are costing and planning, control and performance.

Strategic management accounting is concerned principally with short-term operational decisions.

Break-even point is variable costs divided by contribution per unit.

Contribution is sales less variable costs.

A master budget is formed by feeding in the results from all the other budgets.

The balanced scorecard uses only financial information.

Strategic management accounting looks at both internal and external environments of a business.

Flexing the budget means adjusting the budget to take into account the actual quantity produced.