Author Archives: Jonathan Rooks

About Jonathan Rooks

Jonathan is an accountant who specialises in Mangement Accounting, the running of a business. He works with and entrepreneurs to help them increase income and reduce costs.

Using the Balanced Scorecard in a particular part of the business to monitor the effectiveness of a change.

Having received poor feedback about hospital catering services, a company adopts Balanced Scorecard measures to monitor how their change in practices actually impact on the service. Read to see the four measures they used. Note how they are very specific to … Continue reading

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Curiosities of decision making – Life Cycle Costing

Hinkley Point. Always interesting to see decisions made that ignore basic management accounting principles.  Here the Conservatives have committed us to paying over the odds for electricity for 35 years and of course, we will end up also paying for … Continue reading

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Throughput Accounting – what are the levels of production on a machine?

Interesting to look at real examples of speed of production. This may be an example where we wouldn’t use Throughput Accounting as there is really only one product. However, we could , I suppose, switch between sizes of cans in … Continue reading

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The costs of warehousing

We need to think about the cost of warehousing both as part of the Fixed Costs (either Factory or possibly Sales & Distribution if it is for finished items) and when considering stock holding costs. Always interesting to see real … Continue reading

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Considering Abandonment Costs in Life Cycle Costing

We consider the additional stage of dealing with Abandonment Costs at the end of a product Life Cycle. making sure that the company makes enough profit over the life time of a product to be able to cover the costs … Continue reading

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Life Cycle Costing

There were suggestions that paper based books were in the decline phase as purchasers switched to e-books. It now looks like those predictions may have been premature. https://www.theguardian.com/books/2017/mar/17/paperback-books-sales-outperform-digital-titles-amazon-ebooks

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Trend Analysis

Trends can not only affect overall demand for a product, but demand for the source of a particular product. Over recent years we have seen a  change in the amount of organic vegetables bought as  a proportion of all vegetable … Continue reading

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Increasing productivity

With Labour costs being a major element of production costs, improvements in productivity per labour hour are very important. However, over recent years, productivity ahs been falling. Will developments in technology reverse this? http://www.standard.co.uk/business/hamish-mcrae-don-t-panic-techies-could-solve-productivity-crisis-a3505976.html

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Relevant Costing and ignoring Sunk Costs

We’ve discussed how hard it is for human beings to ignore the money they have already spent “We can’t stop now after spending all this money!”, when in reality they should be looking at whether future expenditure brings sufficient benefits. … Continue reading

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Drink to think – how water will boost your exam success.

Drinking more water improves memory and mood

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