What it is the role-being a consultant, replying to the BOD or the CEO; to add vaue to the organisation, what -why and how , analysis and applications

Performancemanagement; to plan in advance, to control performance and makedecisions

Costing methods and EMA

    cost per unit

    Direct materials

    Direct labour

    Direct expenses

    Production overheads

         Full production cost per unti

Absorption costing (AC) : P-O?Hs 1. cost centres , 2 cost centres  product lines

Activity-based costing(ABC)

   
-Life-cycle costing (LCC)

-Environmental management accounting (EMA

-Target costing

Decision making technique; Budgeting theories and variances

TQM and JIT; Financial ratios; Non-financial indicators; NPOS; Divisional perforamcne measures; Balanced scorecard, three building blocks; Management infromation system

Flexible budget:(弹性预算）： A flexible budget shows budgets for a number of different levels of activity. It is used for both planning and control purposes

If flexible budget is prepared with actual activity level, it is called a flesed budget(based on Actual quantity

-Variable costs can be flexed to different activity levels

- Fixed costs are not to change in a derect proportion with activity level.

Fixed budget ----------Flexed budget----------Actual

                                      200unit                          200unit

弹性预算法则是根据实际活动量的变化来调整预算数额的。弹性预算能够根据实际活动量的变化，灵活地调整预算数额，以适应不同水平的活动量变化。弹性预算适用于那些活动量变化较大、不稳定的情况下。

Incremental budgeting(增量预算法): Starts with the previous period's budget or actual results, and adds (or subtrats) an incremental amount to cover inflation and other known changes.

Pros: Simple and quick

Suitable in stable environments

Cons: Builds on previous inefficiencies----does not remove

Does not encourage innovation----Unsuited to changing environments

Tartgets might be too easy----Budgetary slack （松驰预算）will be carried in future periods

Encourage over-spending

增量预算法，也称为调整预算法，是一种在编制预算时，以上一年度的实际支出为基础，根据新的业务需求和市场变化，对预算进行适当调整的方法。这种方法的核心在于，它不是从零开始编制预算，而是基于现有的财务数据，结合未来的业务计划，对预算进行增量或减量的调整。

Zero-based budgeting(ZBB)(零基预算）：A mehod of budgeting that requires each cost element to be specifically justified, as though the activites to which the budget related were being undertaken for the first time. Without approval, the budget allowance is Zero.

Process of ZBB:

-Defind decision packages: what todo and how? cost,time-taken for each activity

-Evaluation and ranking: Must do, Discretinary, Value for money or best benefit with lowest cost.

-Allocation of resources

零基预算作为一种全面的预算管理方法，要求每个预算周期开始时，所有开支都必须从零开始计算，每个费用项都需要证明其必要性。有助于提高成本意识和资源的高效利用。

Rolling budget: A budget kepi continuously up to date by adding another accounting period(month or quarter)when the earliest accounting period has expired.

Pros:

-Keeping tight control and always having an accurate budget for the next 12 months

-More realistic and certain targets are set.

Cons:

-Suitable for fast changing environment

-Taking time and training needed

滚动预算主要可以分为时间滚动、事件滚动和混合滚动三种类型,每个月更新一次预算，将下一个月的预算加入到现有的预算周期中，同时去掉最远一个月的预算

Activity-based -costing method(ABB)

lease explain how ABC may help in accsessing the profitablbility of the three new products

Beyong budgeting (BB)

Advanced variances

Budgeting styles