This site uses cookies to store information on your computer. Some are essential to make our site work; others help us improve the user experience. By using the site, you consent to the placement of these cookies. Read our privacy policy to learn more.


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

Flash Player 9.0.0 or above

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