Prof Madya Dr. Mohamad Azmi Nias Ahmad

Meaning Costs outside the factory, i.e. selling, distribution, and administration. These are period costs and are not included in the cost o...

Meaning All indirect costs related to the factory/production that are not direct materials or direct labour. Still part of product cost, but...

Meaning Prime cost = Direct Materials + Direct Labour These are costs that can be directly traced to each unit of product. Typical examples ...

Aspect Management Accounting Financial Accounting Report frequency / timing ...

Product costs from a traditional absorption system (using only one volume base like machine hours or labour hours) can be less accurate than...

How creative accounting affects ratio analysis Ratio analysis assumes that the numbers are fairly presented. If accounting has been “creativ...

What is creative accounting? Creative accounting is an act of using accounting choices, estimates and timing to manipulate reported results ...

1. Ratios are only as good as the financial statements If the financial statements contain errors, are manipulated (“window dressing”), or u...

1. Always find cost per unit for variable costs. 2. Never multiply fixed costs by units. Fixed costs stay the same. 3. Read the question car...

When actual output is different from budgeted output: Prepare flexible budget at the actual units. Compare Actual vs Flexible Budget, not Ac...

Original budget at 5,000 units: Selling price per unit: RM10 Direct material: RM10,000 Direct labour: RM7,500 Fixed overheads: RM8,000 Step ...

Step 1: Identify each cost as: Variable Fixed Semi-variable (then split into fixed + variable) Step 2: Find variable cost per unit For each ...

To prepare a flexible budget, students must understand cost behaviour: 1. Variable Cost Changes in total with activity level. Cost per unit ...

Because actual activity is usually different from the planned activity. If we compare: Actual result at 7,000 units vs Original budget at 5,...

A flexible budget is a budget that changes (flexes) according to the actual level of activity (e.g. units produced, units sold, machine hour...

What is a Flexible Budget? Why Do We Need a Flexible Budget? Cost Behaviour in Flexible Budget Steps to Prepare a Flexible Budget Simple Exa...

The high–low method is a simple way to split a mixed cost into: a fixed cost part, and a variable cost per unit part using only two data poi...

2025 11 10 Webinar ICT: Pengurusan Projek ICT di UiTM 2025 11 10 Konsep 4C dalam Pembelajaran Abad 21 (PAK21) 2025 11 10 - Survey OUM 2025 ...

Week 7 (17-23 November 2025) Audit Planning & Fieldwork Part 3b Lecture Notes 1 -  Click here Lecture Notes 2 -  Audit Planning & Fi...

Week 6 (10-16 November 2025) Audit Planning & Fieldwork Part 3a Lecture Notes 1 -  Click here Lecture Notes 2 -  Audit Planning & Fi...

Types of Audit Sampling 1. Random Selection Each item has an equal chance of being chosen. Use random number tables or computer-generated ra...

Reasonable Assurance Because auditors use sampling, they provide: Reasonable assurance, not absolute assurance. Means: high but not 100% cer...

Why Do Auditors Use Sampling? Auditors normally cannot check every single transaction (too many, too costly). So they select a sample and dr...

Relationship between Audit Risk and Sampling First recap: Audit risk = risk the auditor gives a wrong opinion on financial statements that a...

Relationship between Audit Risk and Audit Evidence inverse relationship between acceptable audit risk & evidence. The lower the level of...

Relationship between Materiality and Audit Risk inverse relationship between materiality and the level of audit risk If materiality level is...

How to Minimise Audit Risk? Auditors cannot make audit risk zero, but they can reduce it to an acceptably low level by: 1. Good Planning Und...

Audit risk   Risk that auditor gives inappropriate audit opinion on FS that are materially misstated Can be directly controlled  3 component...