The document discusses various concepts related to manufacturing costs including:
- Direct costs include direct materials, direct labor, and manufacturing overhead which make up total manufacturing costs.
- Product costs include direct materials, direct labor, and manufacturing overhead that are assigned to units produced. Period costs are expensed on the income statement and not included in product costs.
- For manufacturers, inventory includes raw materials, work in process, and finished goods. Work in process inventory captures partially complete products as manufacturing costs are added through the production process.
The document discusses concepts related to manufacturing costs, including:
1. It defines direct materials, direct labor, and manufacturing overhead as the components of manufacturing costs. It also discusses classifications of costs as direct, indirect, fixed, and variable.
2. It explains how manufacturing costs flow through the production process, including raw materials, work in process, and finished goods inventory accounts. Cost of goods sold is also discussed.
3. Key concepts like opportunity costs, sunk costs, and differential costs and revenues are explained through examples.
| Managerial Accounting | Chapter 1 | An Overview to Managerial Accounting | ...Ahmad Hassan
Chapter 1: an overview of managerial accounting -- managerial accounting and financial accounting, work of management, planning and control cycle, differences b/w managerial accounting and financial accounting, comparing merchandising and manufacturing activities, Chapter 2: managerial accounting and cost concepts -- classifications of costs, manufacturing and non-manufacturing costs, product costs versus period costs, cost classifications for predicting cost behavior, fixed costs and variable costs, direct and indirect costs, differential costs and revenues, opportunity and sunk costs.
The document discusses the limitations of financial accounting that led to the development of cost accounting. It then provides definitions and explanations of key cost accounting concepts and terms including cost, cost centers, cost units, cost classification, costing methods, and elements of cost. Standard costing, budgetary control, and other costing techniques are also introduced. The overall summary is that the document serves as an introduction to cost accounting concepts, terminology, and methodologies.
The document discusses various cost classifications and terminology used in accounting and cost management. It defines different types of costs including direct materials, direct labor, manufacturing overhead, period costs, variable costs, fixed costs, direct costs, indirect costs, differential costs, sunk costs, and opportunity costs. It also explains how costs are classified for different purposes such as preparing financial statements, predicting cost behavior, assigning costs, and making decisions.
Introduction to Managerial Accounting and Cost ConceptsViệt Hoàng Dương
The document provides an overview of managerial accounting concepts including the four functions of management, planning and control cycles, classifications of manufacturing costs, and distinctions between product and period costs. It defines direct materials, direct labor, and manufacturing overhead as the three basic manufacturing cost categories. Product costs include direct materials, direct labor, and manufacturing overhead, and are recorded in inventory accounts. Period costs are expensed on the income statement as incurred rather than included in inventory.
The document also discusses the schedule of cost of goods manufactured, which calculates manufacturing costs to determine the cost of goods produced during a period. It distinguishes between variable costs, which change with activity levels, and fixed costs, which remain constant with changes in activity.
There are various ways to classify costs. Costs can be classified based on elements like material, labor, and expenses which can be further divided into direct and indirect categories. Costs can also be classified based on the product into direct and indirect costs. Additionally, costs can be classified based on the level of production as either fixed or variable costs. Classification can also occur based on the function like production, administration, selling, and distribution costs. Other bases for classification include controllability and whether the costs are for decision making like shutdown or sunk costs.
The cost of a product consists of direct material, direct labor, direct expenses, and overhead costs which include factory overhead, selling and distribution overhead, and administrative overhead. Direct costs can be traced to a specific product while indirect costs cannot. Overhead includes various indirect expenses like utilities, rent, and supervision that are allocated across products and services.
The document discusses concepts related to manufacturing costs, including:
1. It defines direct materials, direct labor, and manufacturing overhead as the components of manufacturing costs. It also discusses classifications of costs as direct, indirect, fixed, and variable.
2. It explains how manufacturing costs flow through the production process, including raw materials, work in process, and finished goods inventory accounts. Cost of goods sold is also discussed.
3. Key concepts like opportunity costs, sunk costs, and differential costs and revenues are explained through examples.
| Managerial Accounting | Chapter 1 | An Overview to Managerial Accounting | ...Ahmad Hassan
Chapter 1: an overview of managerial accounting -- managerial accounting and financial accounting, work of management, planning and control cycle, differences b/w managerial accounting and financial accounting, comparing merchandising and manufacturing activities, Chapter 2: managerial accounting and cost concepts -- classifications of costs, manufacturing and non-manufacturing costs, product costs versus period costs, cost classifications for predicting cost behavior, fixed costs and variable costs, direct and indirect costs, differential costs and revenues, opportunity and sunk costs.
The document discusses the limitations of financial accounting that led to the development of cost accounting. It then provides definitions and explanations of key cost accounting concepts and terms including cost, cost centers, cost units, cost classification, costing methods, and elements of cost. Standard costing, budgetary control, and other costing techniques are also introduced. The overall summary is that the document serves as an introduction to cost accounting concepts, terminology, and methodologies.
The document discusses various cost classifications and terminology used in accounting and cost management. It defines different types of costs including direct materials, direct labor, manufacturing overhead, period costs, variable costs, fixed costs, direct costs, indirect costs, differential costs, sunk costs, and opportunity costs. It also explains how costs are classified for different purposes such as preparing financial statements, predicting cost behavior, assigning costs, and making decisions.
Introduction to Managerial Accounting and Cost ConceptsViệt Hoàng Dương
The document provides an overview of managerial accounting concepts including the four functions of management, planning and control cycles, classifications of manufacturing costs, and distinctions between product and period costs. It defines direct materials, direct labor, and manufacturing overhead as the three basic manufacturing cost categories. Product costs include direct materials, direct labor, and manufacturing overhead, and are recorded in inventory accounts. Period costs are expensed on the income statement as incurred rather than included in inventory.
The document also discusses the schedule of cost of goods manufactured, which calculates manufacturing costs to determine the cost of goods produced during a period. It distinguishes between variable costs, which change with activity levels, and fixed costs, which remain constant with changes in activity.
There are various ways to classify costs. Costs can be classified based on elements like material, labor, and expenses which can be further divided into direct and indirect categories. Costs can also be classified based on the product into direct and indirect costs. Additionally, costs can be classified based on the level of production as either fixed or variable costs. Classification can also occur based on the function like production, administration, selling, and distribution costs. Other bases for classification include controllability and whether the costs are for decision making like shutdown or sunk costs.
The cost of a product consists of direct material, direct labor, direct expenses, and overhead costs which include factory overhead, selling and distribution overhead, and administrative overhead. Direct costs can be traced to a specific product while indirect costs cannot. Overhead includes various indirect expenses like utilities, rent, and supervision that are allocated across products and services.
The document discusses product costs and period costs. Product costs refer to the costs to produce a product, including direct materials, labor, and overhead. Product costs are estimated using a bill of materials and labor routings. Period costs cannot be included in inventory and are expenses that vary with the passage of time, not production, such as selling, advertising, and administrative expenses. The key difference between the two is that product costs are variable costs associated with production, while period costs are fixed costs associated with operating the business.
Alpha Manufacturing sells shipping containers and is operating near capacity. It has been approached by a new customer wanting to order 1,000 units at $65 per unit, which would require giving up sales of 600 current units at $75 per unit. Accepting the new order would increase Alpha's profits by $6,000. If the special order price was $50 per unit instead, Alpha's profits would decrease by $9,000.
The document discusses the classification and elements of cost. It classifies costs according to nature, function, identifiability, behavior, association with products, controllability, normality, time, and relevance. Specifically, it breaks down costs by their nature or elements into direct and indirect materials costs, direct and indirect labor costs, and direct and indirect expenses costs. It defines overheads as the aggregate of indirect material cost, indirect labor cost, and indirect expenses.
This document discusses manufacturing costs, which are the costs generated during the production of a product or service. It identifies three basic elements of manufacturing costs: raw materials, labor, and production costs. Direct costs include direct raw materials, direct materials, and direct labor that are physically incorporated into the final product. Indirect costs include indirect materials, indirect labor, and other expenses not directly related to production but that contribute to the overall manufacturing costs. The document provides examples of different types of direct and indirect costs. It also defines terms like prime cost, conversion cost, total cost, and unit production cost. An exercise is included to calculate costs for a bakery producing cookies.
The purpose of cost estimating is to find the cost of the manufacturing operations and to assist in setting the price for the product
Costing is the determination of an actual cost of a component after adding different expenses incurred in various departments
1. Khalid Aziz teaches financial accounting and cost accounting courses for various qualifications including ICMAP stages 1-4, ICAP modules B and D, B.Com, BBA, MBA, and PIPFA.
2. He provides crash courses and fresh classes in financial accounting and cost accounting for individuals and groups.
3. Contact information is provided for Khalid Aziz located in Karachi, Pakistan.
Topic 11 Cost Accounting And Managementguest441011
Cost accounting and management involves analyzing how costs behave with changes in business activity levels. There are three types of costs: variable costs that change with activity levels, fixed costs that remain constant, and mixed costs that have both fixed and variable components. It is important to identify costs as fixed or variable for business decisions around pricing, production methods, and sales levels needed to cover costs. Manufacturing costs consist of direct materials, direct labor, and manufacturing overhead like indirect labor and depreciation. Period costs are non-manufacturing expenses like selling and administrative costs.
Job order costing systems use a predetermined overhead rate to apply manufacturing overhead to jobs, which can result in overapplied or underapplied overhead for the period depending on actual overhead costs. Over or underapplied amounts are allocated to work in process, finished goods, and cost of goods sold inventory accounts or closed directly to cost of goods sold based on the percentage of total overhead applied to each account. This process ensures overhead costs are properly matched with the time period they relate to.
This document discusses job costing concepts including:
- Job costing is used to track costs of individual jobs or batches. Costs like direct materials, direct labor, and overhead are accumulated for each job.
- Process costing is used to track costs of mass production through departments. Costs are assigned to products based on units produced.
- Examples show calculating overhead rates and applying overhead to jobs based on direct labor hours. Job costs are transferred to finished goods and then cost of goods sold.
Costs are necessary expenses for a business and are categorized as either variable or fixed. Variable costs change directly with production levels, increasing as production increases and decreasing as production decreases. Fixed costs remain the same regardless of the production level and include expenses like rent and loan interest. The total costs of a business are the sum of total variable costs and total fixed costs.
This document discusses ways to reduce production costs in a manufacturing business. It begins by defining manufacturing and production costs, which include direct material costs, direct labor costs, and manufacturing overheads. It then provides examples of calculating production costs and provides several techniques to reduce costs, including tracking production metrics, reducing direct material and inventory carrying costs, improving workforce efficiency, controlling overheads, eliminating non-value-adding processes, leveraging automation, optimizing production levels, reducing waste, and implementing control systems. The key recommendations are to track costs closely, negotiate lower material prices, optimize inventory levels, and control overhead spending.
This document discusses various concepts related to cost accounting, including definitions of cost, classifications of costs, elements of cost, and overhead costs. It defines direct and indirect costs, fixed and variable costs, and classifications like prime cost, factory overhead, administrative overhead, and selling overhead. It provides examples and explanations of different types of costs like material, labor, expenses that make up the total cost of production and sales. The document is intended to provide a comprehensive overview of fundamental cost accounting concepts.
This document provides information about a cost accounting course offered by Cost Academy. It includes contact information for the academy, a list of topics to be covered in the course, and the number of classes required for each topic. The total number of classes for the full course is 44. It also includes the syllabus for the Group II Paper 4 exam on Cost Accounting and Financial Management, which will cover cost accounting for 50 marks and financial management for 50 marks over three hours.
Manufacturing cost accounting ppt @ mba financeBabasab Patil
The document provides an overview of manufacturing cost accounting concepts and calculations including job order costing, activity based costing, standard costs, and flexible budgets. It discusses calculating product costs, contribution margin, breakeven analysis, master budget components including direct materials budget, labor variances, and flexible budget performance reports. The key information covered relates to accounting for costs in a manufacturing environment.
Cost accounting is the process of tracking and recording costs associated with manufacturing or producing goods and services. It helps management make informed business decisions and set prices through cost analysis and control. The key objectives of cost accounting are to determine the actual cost of products, identify inefficiencies, provide cost comparisons, and analyze trends to help set production policies and programs. Maintaining an effective cost accounting system provides businesses with valuable information for activities like profitability analysis, inventory valuation, budgeting, and financial reporting.
This document provides information about cost-volume-profit (CVP) analysis for Wind Bicycle Co. It includes the company's contribution income statement for the month of June showing sales of 500 bikes for $250,000, variable expenses of $150,000, contribution margin of $100,000, fixed expenses of $80,000 and net income of $20,000. It then discusses various CVP concepts including contribution margin, break-even point, margin of safety, operating leverage and sales mix. Formulas and examples are provided to demonstrate how to calculate items like break-even point in units and dollars, target profit levels, degree of operating leverage and sales mix impact on break-even analysis.
Dokumen tersebut membahas beberapa algoritma pengurutan data (sorting) seperti bubble sort, selection sort, dan insertion sort. Bubble sort bekerja dengan membandingkan dan menukar pasangan elemen berurutan jika terbalik. Selection sort mencari elemen terkecil/terbesar dan menukar ke posisi yang tepat. Insertion sort menyisipkan elemen ke tempat yang sesuai seperti mengurutkan kartu.
Dokumen tersebut membahas tentang akuntansi komitmen dan kontijensi pada perbankan. Komitmen adalah ikatan kontrak yang harus dilaksanakan bila persyaratan terpenuhi, seperti fasilitas kredit, L/C, dan transaksi valuta asing. Kontijensi adalah kemungkinan laba rugi di masa depan. Keduanya dicatat di rekening administratif dan dilaporkan secara terpisah dalam laporan komitmen dan kontijensi.
Dokumen tersebut memberikan tutorial tentang cara menambahkan texture pada objek 3D di Blender. Langkah-langkahnya meliputi memilih objek, mengaktifkan mode edit, memilih tampilan UV/Image Editor, memuat gambar texture, membuat material baru, menambahkan texture gambar, mengatur koordinat UV, dan menugaskan material pada objek.
The document discusses product costs and period costs. Product costs refer to the costs to produce a product, including direct materials, labor, and overhead. Product costs are estimated using a bill of materials and labor routings. Period costs cannot be included in inventory and are expenses that vary with the passage of time, not production, such as selling, advertising, and administrative expenses. The key difference between the two is that product costs are variable costs associated with production, while period costs are fixed costs associated with operating the business.
Alpha Manufacturing sells shipping containers and is operating near capacity. It has been approached by a new customer wanting to order 1,000 units at $65 per unit, which would require giving up sales of 600 current units at $75 per unit. Accepting the new order would increase Alpha's profits by $6,000. If the special order price was $50 per unit instead, Alpha's profits would decrease by $9,000.
The document discusses the classification and elements of cost. It classifies costs according to nature, function, identifiability, behavior, association with products, controllability, normality, time, and relevance. Specifically, it breaks down costs by their nature or elements into direct and indirect materials costs, direct and indirect labor costs, and direct and indirect expenses costs. It defines overheads as the aggregate of indirect material cost, indirect labor cost, and indirect expenses.
This document discusses manufacturing costs, which are the costs generated during the production of a product or service. It identifies three basic elements of manufacturing costs: raw materials, labor, and production costs. Direct costs include direct raw materials, direct materials, and direct labor that are physically incorporated into the final product. Indirect costs include indirect materials, indirect labor, and other expenses not directly related to production but that contribute to the overall manufacturing costs. The document provides examples of different types of direct and indirect costs. It also defines terms like prime cost, conversion cost, total cost, and unit production cost. An exercise is included to calculate costs for a bakery producing cookies.
The purpose of cost estimating is to find the cost of the manufacturing operations and to assist in setting the price for the product
Costing is the determination of an actual cost of a component after adding different expenses incurred in various departments
1. Khalid Aziz teaches financial accounting and cost accounting courses for various qualifications including ICMAP stages 1-4, ICAP modules B and D, B.Com, BBA, MBA, and PIPFA.
2. He provides crash courses and fresh classes in financial accounting and cost accounting for individuals and groups.
3. Contact information is provided for Khalid Aziz located in Karachi, Pakistan.
Topic 11 Cost Accounting And Managementguest441011
Cost accounting and management involves analyzing how costs behave with changes in business activity levels. There are three types of costs: variable costs that change with activity levels, fixed costs that remain constant, and mixed costs that have both fixed and variable components. It is important to identify costs as fixed or variable for business decisions around pricing, production methods, and sales levels needed to cover costs. Manufacturing costs consist of direct materials, direct labor, and manufacturing overhead like indirect labor and depreciation. Period costs are non-manufacturing expenses like selling and administrative costs.
Job order costing systems use a predetermined overhead rate to apply manufacturing overhead to jobs, which can result in overapplied or underapplied overhead for the period depending on actual overhead costs. Over or underapplied amounts are allocated to work in process, finished goods, and cost of goods sold inventory accounts or closed directly to cost of goods sold based on the percentage of total overhead applied to each account. This process ensures overhead costs are properly matched with the time period they relate to.
This document discusses job costing concepts including:
- Job costing is used to track costs of individual jobs or batches. Costs like direct materials, direct labor, and overhead are accumulated for each job.
- Process costing is used to track costs of mass production through departments. Costs are assigned to products based on units produced.
- Examples show calculating overhead rates and applying overhead to jobs based on direct labor hours. Job costs are transferred to finished goods and then cost of goods sold.
Costs are necessary expenses for a business and are categorized as either variable or fixed. Variable costs change directly with production levels, increasing as production increases and decreasing as production decreases. Fixed costs remain the same regardless of the production level and include expenses like rent and loan interest. The total costs of a business are the sum of total variable costs and total fixed costs.
This document discusses ways to reduce production costs in a manufacturing business. It begins by defining manufacturing and production costs, which include direct material costs, direct labor costs, and manufacturing overheads. It then provides examples of calculating production costs and provides several techniques to reduce costs, including tracking production metrics, reducing direct material and inventory carrying costs, improving workforce efficiency, controlling overheads, eliminating non-value-adding processes, leveraging automation, optimizing production levels, reducing waste, and implementing control systems. The key recommendations are to track costs closely, negotiate lower material prices, optimize inventory levels, and control overhead spending.
This document discusses various concepts related to cost accounting, including definitions of cost, classifications of costs, elements of cost, and overhead costs. It defines direct and indirect costs, fixed and variable costs, and classifications like prime cost, factory overhead, administrative overhead, and selling overhead. It provides examples and explanations of different types of costs like material, labor, expenses that make up the total cost of production and sales. The document is intended to provide a comprehensive overview of fundamental cost accounting concepts.
This document provides information about a cost accounting course offered by Cost Academy. It includes contact information for the academy, a list of topics to be covered in the course, and the number of classes required for each topic. The total number of classes for the full course is 44. It also includes the syllabus for the Group II Paper 4 exam on Cost Accounting and Financial Management, which will cover cost accounting for 50 marks and financial management for 50 marks over three hours.
Manufacturing cost accounting ppt @ mba financeBabasab Patil
The document provides an overview of manufacturing cost accounting concepts and calculations including job order costing, activity based costing, standard costs, and flexible budgets. It discusses calculating product costs, contribution margin, breakeven analysis, master budget components including direct materials budget, labor variances, and flexible budget performance reports. The key information covered relates to accounting for costs in a manufacturing environment.
Cost accounting is the process of tracking and recording costs associated with manufacturing or producing goods and services. It helps management make informed business decisions and set prices through cost analysis and control. The key objectives of cost accounting are to determine the actual cost of products, identify inefficiencies, provide cost comparisons, and analyze trends to help set production policies and programs. Maintaining an effective cost accounting system provides businesses with valuable information for activities like profitability analysis, inventory valuation, budgeting, and financial reporting.
This document provides information about cost-volume-profit (CVP) analysis for Wind Bicycle Co. It includes the company's contribution income statement for the month of June showing sales of 500 bikes for $250,000, variable expenses of $150,000, contribution margin of $100,000, fixed expenses of $80,000 and net income of $20,000. It then discusses various CVP concepts including contribution margin, break-even point, margin of safety, operating leverage and sales mix. Formulas and examples are provided to demonstrate how to calculate items like break-even point in units and dollars, target profit levels, degree of operating leverage and sales mix impact on break-even analysis.
Dokumen tersebut membahas beberapa algoritma pengurutan data (sorting) seperti bubble sort, selection sort, dan insertion sort. Bubble sort bekerja dengan membandingkan dan menukar pasangan elemen berurutan jika terbalik. Selection sort mencari elemen terkecil/terbesar dan menukar ke posisi yang tepat. Insertion sort menyisipkan elemen ke tempat yang sesuai seperti mengurutkan kartu.
Dokumen tersebut membahas tentang akuntansi komitmen dan kontijensi pada perbankan. Komitmen adalah ikatan kontrak yang harus dilaksanakan bila persyaratan terpenuhi, seperti fasilitas kredit, L/C, dan transaksi valuta asing. Kontijensi adalah kemungkinan laba rugi di masa depan. Keduanya dicatat di rekening administratif dan dilaporkan secara terpisah dalam laporan komitmen dan kontijensi.
Dokumen tersebut memberikan tutorial tentang cara menambahkan texture pada objek 3D di Blender. Langkah-langkahnya meliputi memilih objek, mengaktifkan mode edit, memilih tampilan UV/Image Editor, memuat gambar texture, membuat material baru, menambahkan texture gambar, mengatur koordinat UV, dan menugaskan material pada objek.
Variabel digunakan untuk menyimpan nilai data. Array digunakan untuk menyimpan lebih dari satu nilai data sekaligus dengan menggunakan indeks. Ada dua jenis array, yaitu array satu dimensi dan array multidimensi. Array dideklarasikan dengan menentukan tipe data dan rentang indeksnya.
The document discusses budgeting and the master budget. It provides information on the basic framework of budgeting including detail budgets that roll up into the master budget. It describes planning and control aspects of budgeting. Specific types of budgets are outlined like sales, production, materials, and cash budgets. Methods for developing budgets such as participative and continuous budgeting are covered. The advantages of budgeting and responsibility accounting are also summarized.
Modul ini membahas penggunaan tag-tag dasar HTML untuk membuat halaman web seperti format halaman, gaya teks, dan pengaturan tata letak teks. Modul ini juga membahas cara membuat daftar tak berurut dan tabel menggunakan tag seperti <ul>, <ol>, <li>, <dl>, <dt>, <dd>, dan <table>.
The document discusses encryption and digital security, including a survey that found 40% of IT workers believe they could hold their employer's network hostage by withholding encryption keys. It then provides information on common encryption terminology, types of encryption like symmetric and asymmetric encryption, encryption standards, digital certificates, how digital certificates and signatures work, and cryptography tools.
Cscu module 10 social engineering and identity theftSejahtera Affif
1. An identity theft operation in Oakland, California was shut down by police. The operation manufactured fake checks, IDs, and credit cards and potentially affected thousands of victims in the Bay Area and other states.
2. Police are searching for a woman named Lavonda Moore who is accused of stealing a debit card from an elderly man and using it to make multiple withdrawals and purchases. She has outstanding warrants for credit card theft, fraud, larceny, and identity theft.
3. A 2011 identity theft statistics report found that 11.1 million US adults were victims of identity theft, with total fraud amounts reaching $54 billion. 75% of victims knew the crimes were committed.
The document provides technical specifications and operating instructions for the Epson LX-800 printer. It describes the printer's features such as its maximum print speed of 180 characters per second, built-in fonts, input buffer, and optional interfaces. The document also provides diagrams of the printer's main mechanical and electronic components and instructions on safety, maintenance, troubleshooting and repair.
Cscu module 11 security on social networking sitesSejahtera Affif
The document discusses security risks on social networking sites. It notes that phishing attacks on social networks increased 1200% in the past year according to a Microsoft report. The report found that 84.5% of phishing in December used social networks as a lure, up from 8.3% at the start of 2010. The popularity of social media has created opportunities for criminals to impact users and their connections through impersonation.
This document summarizes the creation of a login form and main menu page for a website administrator area. It includes instructions to:
1) Create a user table with a primary key of username.
2) Build a login form that submits to a cek_login.php file.
3) The cek_login.php file checks the login credentials against the user table and sets session variables if valid.
4) A menuadmin.php file is created to display a main menu page for logged in users.
Chapter 2 Managerial Accounting and Cost Concepts.pptjoellynpatrona
The document discusses key concepts in managerial accounting including the functions of management, planning and control, cost classifications, and inventory accounting. It defines direct materials, direct labor, and manufacturing overhead as the three basic manufacturing cost categories. It also distinguishes between product costs and period costs, with examples of each. Finally, it covers the differences between variable and fixed costs, direct and indirect costs, and defines differential costs, opportunity costs, and sunk costs.
This document discusses various concepts in cost accounting including:
1. The differences between cost accounting and financial accounting and definitions of cost terminology.
2. The classification of costs as direct or indirect and the ability to trace costs to departments or products.
3. How costs are classified based on their behavior in relation to volume and whether they are variable or fixed.
The document defines and discusses key cost accounting terms and concepts. It describes how costs flow through a manufacturing company, from raw materials to work in process to finished goods. It also covers cost accumulation procedures like job order costing and process costing, and how costs move from the balance sheet to the income statement. Cost classification categories like direct vs indirect, variable vs fixed, and product vs period costs are also summarized.
The document discusses cost sheets, which break down the total costs of producing a product into various components. It explains that cost sheets are used to determine accurate product costs, fix selling prices, compare costs over time for cost control, and help with decision making. The document then defines different types of costs like fixed, variable, operating, and direct costs. It also outlines the components that make up total cost, such as prime cost, factory cost, office cost, and discusses how to calculate costs like material consumed. Finally, it provides an example of the information needed to prepare a cost sheet statement.
Ch-1 (B) Cost Concepts, Classificaions and Terms (3).pptxObsaKamil
This document discusses various cost concepts, classifications and terminologies. It defines cost and explains that costs measure the use of resources like materials and labor. Costs are always related to a cost object or purpose. Costs can be classified in different ways such as by behavior (variable, fixed, mixed costs), by organizational responsibility (production, service departments), by function (manufacturing, selling etc.), or by the time period they are charged to revenue (product, period costs). Cost drivers are factors that cause costs to change. Relevant range refers to the level of activity where cost behavior is valid. Opportunity costs and sunk costs are also discussed in relation to decision making.
The document discusses various cost accounting concepts including:
- Cost accounting refers to recording, classifying, and summarizing costs over a period of time.
- Costs are classified as direct or indirect, relevant or irrelevant, and fixed, variable, or mixed.
- Costs are summarized using different costing methods like job order costing or process costing.
This document provides an overview of managerial accounting concepts including the role of managerial accountants, cost classification, product costing systems, and income statement preparation. Key points include:
- Managerial accountants play an important role in decision making, planning, controlling activities, and assessing performance. Their role has changed considerably over the past decade.
- Costs are classified as direct, indirect, variable, fixed, and mixed for purposes of decision making, cost prediction, and cost control. Product costs include direct materials, direct labor, and manufacturing overhead.
- Product costing systems like job order and process costing are used to assign costs to products and calculate unit product costs. Income statements can be prepared
Cost Classification in Management AccountingxChamodiBandara1
The document discusses different ways to classify costs for accounting and decision making purposes. It covers:
1. Direct and indirect costs can be classified as production or non-production costs. Direct costs like materials and labor can be traced to specific products, while indirect costs like maintenance cannot.
2. Costs are also classified as fixed, variable, or mixed depending on how they change with activity levels. Variable costs change with activity while fixed costs do not.
3. For decision making, costs are classified as relevant or irrelevant. Only future costs changed by a decision and opportunity costs are relevant. Sunk costs that cannot be recovered are irrelevant.
The document discusses various cost and managerial accounting concepts including:
1) The cost of a gift given to a friend is $0 as the original purchase price of the wine is not relevant, only the current market value of $75 matters.
2) Cost objects can be anything whose cost is being determined such as a product, process, location, or person. Direct costs are easily traceable to the cost object while indirect costs are shared among multiple cost objects.
3) Total costs are analyzed by elements including direct and indirect materials, direct and indirect labor, and overhead costs which include both direct and indirect expenses.
This document provides an introduction to accounting concepts related to cost. It defines cost accounting as recording and summarizing financial transactions and events in terms of money. It also discusses the different types of accounting, including financial accounting which publishes reports for external users, and management accounting which provides information to managers for decision making. Finally, it outlines the key steps in calculating cost of goods manufactured and cost of goods sold.
There are three main elements of cost: material, labor, and expenses. Each element can be direct or indirect. Direct costs include raw materials, labor for production workers, and expenses directly connected to production like freight. Indirect costs include materials and labor that are not directly tied to production output as well as administrative expenses. A cost sheet formally documents all fixed and variable direct and indirect costs incurred during production. It calculates prime cost, works cost, cost of production, and cost of sales to present the total cost per unit and help set selling prices, control costs, formulate production policy, and communicate cost information.
This document discusses key concepts in managerial accounting, including:
1. The differences between managerial and financial accounting in terms of users, reports, purposes, and verification.
2. The importance of managerial accounting information for decision making through planning, directing, and controlling.
3. Key cost concepts like classifications of costs by behavior, function, and period.
4. Preparing key statements for manufacturing companies including the statement of cost of goods manufactured, income statement, and balance sheet.
This document discusses various ways that costs are classified for different business purposes. It defines direct materials, direct labor, and manufacturing overhead as the three basic manufacturing cost categories. Costs are also classified as direct or indirect for assigning costs to cost objects, as product or period costs for financial reporting, and as variable, fixed, or mixed costs for predicting cost behavior. Differential, opportunity, and sunk costs are classifications used for making business decisions.
The document discusses various cost terms, concepts, and classifications used in cost accounting. It defines key cost elements like direct and indirect materials, direct and indirect labor, and other direct and indirect expenses. It also explains different cost classifications like fixed vs variable costs, product vs period costs, and classifications used for decision-making, planning, and control. Functional and behavioral cost classifications as well as relevant cost concepts are outlined.
The Changing Role of Managerial Accounting in a GLOBAL Business EnvironmentAbdullah Rabaya
This document discusses basic cost management concepts and accounting for mass customization operations. It defines key cost terms like product costs, period costs and expenses. It also describes how costs are classified on financial statements and provides examples of manufacturing costs like direct material, direct labor and manufacturing overhead. The document shows schedules for calculating cost of goods manufactured and sold. It includes an example income statement for a manufacturer to illustrate how costs flow through the financial statements.
This document discusses key concepts in managerial accounting including the differences between managerial and financial accounting, the definitions of cost, direct and indirect materials and labor, factory overhead, variable and fixed costs, product costs, and period costs. It provides examples for each term to illustrate the concepts.
The document discusses job-order costing and process costing systems. It provides examples of how direct materials, direct labor, and manufacturing overhead are traced or assigned to jobs. It also describes how predetermined overhead rates are used to apply overhead to jobs when actual overhead amounts are not yet known for the period. The document summarizes the basic cost flows and accounting entries used in a job-order costing system.
Management accounting provides information to management for planning, controlling, and decision making. It involves identifying, measuring, accumulating, analyzing, preparing, interpreting and communicating financial information. Management accounting also includes preparing financial reports for external stakeholders. Cost accounting is a key part of management accounting and involves determining and tracking the costs of products, services, activities or resources.
The document outlines lecture 1 of a textile costing and management course, which introduces important concepts such as defining costs and their components, the role and advantages of cost accounting, classifying costs as fixed, variable, or semi-variable, and how to summarize total manufacturing costs by nature, department, or in a combined format. The lecture also discusses learning outcomes around understanding cost and management techniques, evaluating waste costs, and developing documentation for fabric cost sheets.
ESPP presentation to EU Waste Water Network, 4th June 2024 “EU policies driving nutrient removal and recycling
and the revised UWWTD (Urban Waste Water Treatment Directive)”
Travis Hills' Endeavors in Minnesota: Fostering Environmental and Economic Pr...Travis Hills MN
Travis Hills of Minnesota developed a method to convert waste into high-value dry fertilizer, significantly enriching soil quality. By providing farmers with a valuable resource derived from waste, Travis Hills helps enhance farm profitability while promoting environmental stewardship. Travis Hills' sustainable practices lead to cost savings and increased revenue for farmers by improving resource efficiency and reducing waste.
Describing and Interpreting an Immersive Learning Case with the Immersion Cub...Leonel Morgado
Current descriptions of immersive learning cases are often difficult or impossible to compare. This is due to a myriad of different options on what details to include, which aspects are relevant, and on the descriptive approaches employed. Also, these aspects often combine very specific details with more general guidelines or indicate intents and rationales without clarifying their implementation. In this paper we provide a method to describe immersive learning cases that is structured to enable comparisons, yet flexible enough to allow researchers and practitioners to decide which aspects to include. This method leverages a taxonomy that classifies educational aspects at three levels (uses, practices, and strategies) and then utilizes two frameworks, the Immersive Learning Brain and the Immersion Cube, to enable a structured description and interpretation of immersive learning cases. The method is then demonstrated on a published immersive learning case on training for wind turbine maintenance using virtual reality. Applying the method results in a structured artifact, the Immersive Learning Case Sheet, that tags the case with its proximal uses, practices, and strategies, and refines the free text case description to ensure that matching details are included. This contribution is thus a case description method in support of future comparative research of immersive learning cases. We then discuss how the resulting description and interpretation can be leveraged to change immersion learning cases, by enriching them (considering low-effort changes or additions) or innovating (exploring more challenging avenues of transformation). The method holds significant promise to support better-grounded research in immersive learning.
The ability to recreate computational results with minimal effort and actionable metrics provides a solid foundation for scientific research and software development. When people can replicate an analysis at the touch of a button using open-source software, open data, and methods to assess and compare proposals, it significantly eases verification of results, engagement with a diverse range of contributors, and progress. However, we have yet to fully achieve this; there are still many sociotechnical frictions.
Inspired by David Donoho's vision, this talk aims to revisit the three crucial pillars of frictionless reproducibility (data sharing, code sharing, and competitive challenges) with the perspective of deep software variability.
Our observation is that multiple layers — hardware, operating systems, third-party libraries, software versions, input data, compile-time options, and parameters — are subject to variability that exacerbates frictions but is also essential for achieving robust, generalizable results and fostering innovation. I will first review the literature, providing evidence of how the complex variability interactions across these layers affect qualitative and quantitative software properties, thereby complicating the reproduction and replication of scientific studies in various fields.
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Exposé invité Journées Nationales du GDR GPL 2024
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Remote Sensing and Computational, Evolutionary, Supercomputing, and Intellige...University of Maribor
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5. Nonmanufacturing Costs
Marketing and selling costs . . .
– Costs necessary to get the order and deliver the
product.
Administrative costs . . .
– All executive, organizational, and clerical costs.
6. Product Costs Versus Period
Costs
Product costs include
direct materials, direct
labor, and
manufacturing
overhead.
Period costs are not
included in product
costs. They are
expensed on the
income statement.
Inventory Cost of Good Sold
Balance
Sheet
Income
Statement
Sale
Expense
Income
Statement
7. Merchandiser
Current Assets
– Cash
– Receivables
– Prepaid Expenses
– Merchandise Inventory
Manufacturer
Current Assets
Cash
Receivables
Prepaid Expenses
Inventories
Raw Materials
Work in Process
Finished Goods
Balance Sheet
8. Merchandiser
Current Assets
– Cash
– Receivables
– Prepaid Expenses
– Merchandise Inventory
Manufacturer
Current Assets
Cash
Receivables
Prepaid Expenses
Inventories
Raw Materials
Work in Process
Finished Goods
Balance Sheet
Materials waiting to
be processed.
Partially complete
products – some
material, labor, or
overhead has been
added.
Completed products
awaiting sale.
9. The Income Statement
Cost of goods sold for manufacturers differs only
slightly from cost of goods sold for merchandisers.
Merchandising Company
Cost of goods sold:
Beg. merchandise
inventory 14,200$
+ Purchases 234,150
Goods available
for sale 248,350$
- Ending
merchandise
inventory (12,100)
= Cost of goods
sold 236,250$
10. Manufacturing Cost Flows
Raw MaterialsMaterial Purchases
Balance Sheet
Costs Inventories
Income
Statement
Expenses
13. Manufacturing Cost Flows
Manufacturing
Overhead
Work in
Process
Finished
Goods
Cost of
Goods
Sold
Selling and
Administrative
Material Purchases
Direct Labor
Balance Sheet
Costs Inventories
Income
Statement
Expenses
Selling and
Administrative
Period Costs
Raw Materials
15. Product Costs - A Closer Look
Beginning inventory
is the inventory
carried over from
the prior period.
Beginning inventory
is the inventory
carried over from
the prior period.
Manufacturing Work
Raw Materials Costs In Process
Beginning raw
materials inventory
16. Manufacturing Work
Raw Materials Costs In Process
Beginning raw Direct materials
materials inventory
+ Raw materials
purchased
= Raw materials
available for use
in production
– Ending raw materials
inventory
= Raw materials used
in production
As items are removed from raw
materials inventory and placed into
the production process, they are
called direct materials.
As items are removed from raw
materials inventory and placed into
the production process, they are
called direct materials.
Product Costs - A Closer Look
17. Manufacturing Work
Raw Materials Costs In Process
Beginning raw Direct materials
materials inventory + Direct labor
+ Raw materials + Mfg. overhead
purchased = Total manufacturing
= Raw materials costs
available for use
in production
– Ending raw materials
inventory
= Raw materials used
in production
Conversion
costs are costs
incurred to
convert the
direct material
into a finished
product.
Conversion
costs are costs
incurred to
convert the
direct material
into a finished
product.
Product Costs - A Closer Look
18. Manufacturing Work
Raw Materials Costs In Process
Beginning raw Direct materials Beginning work in
materials inventory + Direct labor process inventory
+ Raw materials + Mfg. overhead + Total manufacturing
purchased = Total manufacturing costs
= Raw materials costs = Total work in
available for use process for the
in production period
– Ending raw materials – Ending work in
inventory process inventory
= Raw materials used = Cost of goods
in production manufactured.
All manufacturing costs incurred
during the period are added to the
beginning balance of work in
process.
All manufacturing costs incurred
during the period are added to the
beginning balance of work in
process.
Product Costs - A Closer Look
19. Manufacturing Work
Raw Materials Costs In Process
Beginning raw Direct materials Beginning work in
materials inventory + Direct labor process inventory
+ Raw materials + Mfg. overhead + Total manufacturing
purchased = Total manufacturing costs
= Raw materials costs = Total work in
available for use process for the
in production period
– Ending raw materials – Ending work in
inventory process inventory
= Raw materials used = Cost of goods
in production manufactured.
Product Costs - A Closer Look
Costs associated with the goods that
are completed during the period are
transferred to finished goods
inventory.
Costs associated with the goods that
are completed during the period are
transferred to finished goods
inventory.
21. Cost Classifications for
Predicting Cost Behavior
How a cost will react to
changes in the level of
business activity.
– Total variable costs
change when activity
changes.
– Total fixed costs
remain unchanged
when activity changes.
How a cost will react to
changes in the level of
business activity.
– Total variable costs
change when activity
changes.
– Total fixed costs
remain unchanged
when activity changes.
22. Total Variable Cost
Your total long distance telephone bill is
based on how many minutes you talk.
Minutes Talked
TotalLongDistance
TelephoneBill
23. Variable Cost Per Unit
Minutes Talked
PerMinute
TelephoneCharge
The cost per long distance minute talked is
constant. For example, 10 cents per minute.
24. Total Fixed Cost
Your monthly basic telephone bill probably
does not change when you make more local
calls.
Number of Local Calls
MonthlyBasic
TelephoneBill
25. Fixed Cost Per Unit
Number of Local Calls
MonthlyBasicTelephone
BillperLocalCall
The average cost per local call decreases as
more local calls are made.
26. Cost Classifications for
Predicting Cost Behavior
Behavior of Cost (within the relevant range)
Cost In Total Per Unit
Variable Total variable cost changes Variable cost per unit remains
as activity level changes. the same over wide ranges
of activity.
Fixed Total fixed cost remains Fixed cost per unit goes
the same even when the down as activity level goes up.
activity level changes.
27. Direct Costs and Indirect Costs
Direct costs
• Costs that can be
easily and conveniently
traced to a unit of
product or other cost
objective.
• Examples: direct
material and direct labor
Indirect costs
• Costs cannot be easily
and conveniently traced
to a unit of product or
other cost object.
• Example:
manufacturing
overhead
28. Differential Costs and Revenues
Costs and revenues that differ among
alternatives.
Example: You have a job paying $1,500 per month in
your hometown. You have a job offer in a neighboring
city that pays $2,000 per month. The commuting cost
to the city is $300 per month.
Example: You have a job paying $1,500 per month in
your hometown. You have a job offer in a neighboring
city that pays $2,000 per month. The commuting cost
to the city is $300 per month.
Differential revenue is:
$2,000 – $1,500 = $500
29. Differential Costs and Revenues
Costs and revenues that differ among
alternatives.
Differential revenue is:
$2,000 – $1,500 = $500
Differential cost is:
$300
Example: You have a job paying $1,500 per month in
your hometown. You have a job offer in a neighboring
city that pays $2,000 per month. The commuting cost
to the city is $300 per month.
Example: You have a job paying $1,500 per month in
your hometown. You have a job offer in a neighboring
city that pays $2,000 per month. The commuting cost
to the city is $300 per month.
30. Opportunity Costs
The potential benefit that
is given up when one
alternative is selected
over another.
Example: If you were
not attending college,
you could be earning
$15,000 per year.
Your opportunity cost
of attending college for one
year is $15,000.
31. Sunk Costs
Sunk costs cannot be changed by any decision.
They are not differential costs and should be
ignored when making decisions.
Example: You bought an automobile that cost
$10,000 two years ago. The $10,000 cost is
sunk because whether you drive it, park it,
trade it, or sell it, you cannot change the
$10,000 cost.
35. Resource Flows
Beginning raw materials inventory was $32,000.
During the month, $276,000 of raw material was
purchased. A count at the end of the month
revealed that $28,000 of raw material was still
present. What is the cost of direct material
used?
• a. $276,000
• b. $272,000
• c. $280,000
• d. $ 2,000
36. Beginning raw materials inventory was $32,000.
During the month, $276,000 of raw material was
purchased. A count at the end of the month
revealed that $28,000 of raw material was still
present. What is the cost of direct material
used?
• a. $276,000
• b. $272,000
• c. $280,000
• d. $ 2,000
Resource Flows
37. Resource Flows
Direct materials used in production totaled
$280,000. Direct Labor was $375,000 and
factory overhead was $180,000. What were
total manufacturing costs incurred for the
month?
• a. $555,000
• b. $835,000
• c. $655,000
• d. Cannot be determined.
38. Direct materials used in production totaled
$280,000. Direct Labor was $375,000 and
factory overhead was $180,000. What
were total manufacturing costs incurred for
the month?
• a. $555,000
• b. $835,000
• c. $655,000
• d. Cannot be determined.
Resource Flows
39. Resource Flows
Beginning work in process was $125,000.
Manufacturing costs incurred for the month
were $835,000. There were $200,000 of
partially finished goods remaining in work in
process inventory at the end of the month.
What was the cost of goods manufactured
during the month?
• a. $1,160,000
• b. $ 910,000
• c. $ 760,000
• d. Cannot be determined.
40. Beginning work in process was $125,000.
Manufacturing costs incurred for the month
were $835,000. There were $200,000 of
partially finished goods remaining in work in
process inventory at the end of the month.
What was the cost of goods manufactured
during the month?
• a. $1,160,000
• b. $ 910,000
• c. $ 760,000
• d. Cannot be determined.
Resource Flows
41. Cost Behavior
Fixed costs are usually characterized by:
a. Unit costs that remain constant.
b. Total costs that increase as activity
decreases.
c. Total costs that increase as activity
increases.
d. Total costs that remain constant.
42. Fixed costs are usually characterized by:
a. Unit costs that remain constant.
b. Total costs that increase as activity
decreases.
c. Total costs that increase as activity
increases.
d. Total costs that remain constant.
Cost Behavior
43. Cost Behavior
Variable costs are usually characterized by:
a. Unit costs that decrease as activity
increases.
b. Total costs that increase as activity
decreases.
c. Total costs that increase as activity
increases.
d. Total costs that remain constant.
44. Variable costs are usually characterized by:
a. Unit costs that decrease as activity
increases.
b. Total costs that increase as activity
decreases.
c. Total costs that increase as activity
increases.
d. Total costs that remain constant.
Cost Behavior