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Technical

Contemporary management accounting practices in UK manufacturing Logo cima

  David Dugdale, Colwyn Jones & Steve Green |   Free |   CIMA |   2005 |   Thought leadership

There is considerable interest in contribution analysis in the companies studied.Although there has been a widespread presumption that absorption costing systems dominate manufacturing practice, this study reveals that companies often follow long-standing academic advice in structuring their internal Profit and Loss reporting on contribution lines. However, the analysis is sometimes not very systematic - for example, only one company derives both marginal and fullcost profit on a month-to-month basis. (PDF 45KB)

Topics covered:
  • Management accounting: Technical: Management reporting & analysis: Management reporting, Advanced
  • Management accounting: Technical: Management reporting & analysis: Variance analysis, Advanced

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3 Comments/Reflections

Matthew Clarke

Matthew Clarke Sep 2018

I can relate to the article and in my role we use a combination of Contribution Margin Reporting and Traditional Standard Costing based income statements to assess the business performance.
Ian David

Ian David May 2017

a useful update
Nicola Goy

Nicola Goy May 2015

Useful article when considering how to report manufacturing variances