The document provides an overview of cost categories for a manufacturing firm. It discusses direct materials, direct labor, and manufacturing overhead as the three main categories of manufacturing costs. It also discusses non-manufacturing or period costs like selling and administrative costs. Key issues around classifying costs as direct labor or overhead are explored. The flow of costs through raw materials, work in process, and finished goods inventory is explained. Variable and fixed costs are defined in relation to a firm's activity level.
| 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.
| 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 MAIN DIFFERENCE BETWEEN JOB COSTING AND PROCESS COSTING IS THAT IN JOB CO...Hardik Shah
THE MAIN DIFFERENCE BETWEEN JOB COSTING AND PROCESS COSTING IS THAT IN JOB COSTING AN AVERAGING PROCESS IS USED TO COMPUTE THE UNIT COSTS OF PRODUCTS OR SERVICES. - JUSTIFICATION
Overhead Allocation Overhead Allocation of DG Fashions (pvt) Ltd Analysis of the method Evaluation of Existing Method Benefits of Existing Costing Method Limitations of Existing Costing Method Implementing an alternative method Activity-Based Costing
Comparison of traditional costing and ABC
Application
Steps in development of an ABC System Reported benefits
Reported drawbacks
Opportunities in implementing ABC method Barriers in Implementing ABC method Conclusions
THE MAIN DIFFERENCE BETWEEN JOB COSTING AND PROCESS COSTING IS THAT IN JOB CO...Hardik Shah
THE MAIN DIFFERENCE BETWEEN JOB COSTING AND PROCESS COSTING IS THAT IN JOB COSTING AN AVERAGING PROCESS IS USED TO COMPUTE THE UNIT COSTS OF PRODUCTS OR SERVICES. - JUSTIFICATION
Overhead Allocation Overhead Allocation of DG Fashions (pvt) Ltd Analysis of the method Evaluation of Existing Method Benefits of Existing Costing Method Limitations of Existing Costing Method Implementing an alternative method Activity-Based Costing
Comparison of traditional costing and ABC
Application
Steps in development of an ABC System Reported benefits
Reported drawbacks
Opportunities in implementing ABC method Barriers in Implementing ABC method Conclusions
Introduction- Meaning and definition- Objectives, Importance and Uses of Cost Accounting, Difference between Cost Accounting and Financial Accounting; Various Elements of Cost and Classification of Cost; Cost object, Cost unit, Cost Centre; Cost reduction and Cost control. Limitations of Cost Accounting.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
2. OVERVIEW OF COST CATEGORIES
FOR A MANUFACTURING FIRM
All costs incurred by the firm must be accounted for
in its financial statements
MANUFACTURING COSTS
Direct Labor (DL)
Direct Materials (DM)
Overhead (OH)
Indirect Materials
Indirect Labor
Other
NON-MANUFACTURING COSTS
Marketing or Selling Costs
Administrative Costs
3. MANUFACTURING COSTS
1. Direct Materials (DM)
Materials that are consumed in the manufacturing
process and physically incorporated in the finished
product
Materials whose cost is sufficiently large to justify the
record keeping expenses necessary to trace the costs to
individual products
4. 2. Direct Labor (DL)
Labor time that is physically traceable to the
products being manufactured
Labor time whose cost is sufficiently large to
justify the record keeping expenses necessary to
trace the costs to individual products
Example:
Direct labor for manufacturing Honda Accords
Line workers, robot operators, painters, assembly
workers
Any labor probably not included in direct labor?
Factory janitors, factory supervisors, factory
secretaries
MANUFACTURING COSTS
5. KEY ISSUES IN DETERMINING
DIRECT LABOR
Is idle time generally considered as direct labor? Why
or why not?
Usually not. It is not usually due to one product,
hence it is not traceable
What are the typical fringe benefits an assembly line
worker receives?
Health insurance, pension plan, disability insurance
Is the cost of fringe benefits for the assembly line
workers generally considered direct labor?
Usually yes, the costs can be traced
6. KEY ISSUES IN DETERMINING
DIRECT LABOR
When an assembly line worker works overtime, he/she is
paid a regular wage plus an overtime premium. Would
most companies treat his/her regular wage as a direct
labor cost?
Yes, the amount of time an employee works can be
traced to the products.
What about the overtime premium?
Treated as OH, cannot be traced to a specific product.
7. 3. Manufacturing Overhead (OH)
All of costs of manufacturing excluding direct materials
and direct labor
a. Indirect Materials (IM) – Materials, used in the
manufacturing of products, which are difficult to trace
to particular products in an economical way
Glue, nails, cleaning supplies
b. Indirect Labor (IL) – Labor, used in the
manufacturing of products, which is difficult to trace to
particular products in an economical way
Wages for maintenance workers, factory supervisor’s
salary, idle time
MANUFACTURING COSTS
8. MANUFACTURING COSTS
C. All other types of manufacturing overhead
Depreciation on machinery, depreciation on
factory building, factory insurance, utilities for
factory
9. NON-MANUFACTURING COSTS
1. Marketing or Selling Costs – Costs incurred
in securing orders from customers and
providing customers with the finished product
Sales commissions, costs of shipping products
to customers, storage of finished goods,
depreciation of selling equipment (cash
register)
2. Administrative Costs – Executive,
organizational, and clerical costs that are not
related to manufacturing or marketing
CEO’s salary, cost of controller’s office,
depreciation on administrative building.
10. CLASSIFICATION
EXERCISE
Classify the following cost items
Depreciation on factory building
Depreciation on office equipment
Property tax on finished goods
warehouse
Wages paid to forklift operator in
finished goods warehouse
Wages paid to forklift operator in factory
Wages paid to welders when welding
equipment is not working
Paper used in textbook production
Paper used in central office computer
Wages paid to assembly line workers
Maintenance cost for machines
11. OTHER COST CONCEPTS
Product Costs or Inventoriable Costs – costs assigned
to products that were either purchased for resale
(merchandising firm or retailer) or manufactured for sale
(manufacturing firm)
When products are sold, product costs are recognized as
an expense (cost of goods sold or COGS). The costs of
unsold products remain in inventory and are not
expensed (i.e. not deducted from revenue in calculating
net income)
Period Costs – costs that are not product costs and that
are associated with the period in which they are incurred
Period costs such as selling and administrative costs are
expensed (i.e. deducted from revenue in calculating net
income) in the period they are incurred
12. PRODUCT COSTS VERSUS PERIOD
COSTS
Expense
Income
Statement
Inventory
Cost of
Goods Sold
Balance
Sheet
Income
Statement
Sale
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.
13. QUICK CHECK
Which of the following costs would be
considered a period rather than a product cost
in a manufacturing company?
A. Manufacturing equipment depreciation.
B. Property taxes on corporate headquarters.
C. Direct materials costs.
D. Electrical costs to light the production
facility.
E. Sales commissions.
14. COSTS RELATED TO DECISION
MAKING
Opportunity Costs - costs when taking one action
requires giving up the opportunity to earn profits from a
different action
Nike Inc. has limited production capacity. What would
be Nike’s opportunity cost of accepting a special order
from the military for combat boots?
If Nike accepts the special order, they may not be able to
produce enough product for other sales. So, Nike would
lose the profit from the other sale.
15. COSTS RELATED TO DECISION
MAKING
Incremental Costs or Differential Costs – additional
costs incurred when choosing a certain course of action
over another (Note that incremental costs can include
opportunity costs)
What would be Macy’s incremental costs of expanding
its fragrance department and shrinking its accessories
department?
The costs of stocking and staffing the new fragrance
area, opportunity costs of lost profit from the decrease in
sales of accessories
16. COSTS RELATED TO DECISION
MAKING
Incremental Benefits or Differential Benefits – additional
benefits reaped when choosing a certain course of action over
another
What would be Macy’s incremental benefits of expanding its
fragrance department and shrinking its accessories
department?
Profits Macy’s expects to earn on the new fragrances it
displays/stocks
Sunk Costs – Costs that have been incurred and that are not
affected by any current/future action
What would be considered sunk cost if Macy’s decides to expand
its fragrance department and shrink its accessories
department?
Depreciation on the building, cost of the building
17. COST FLOWS IN A
MANUFACTURING COMPANY
3. Inputs such as labor and capital equipment are
also incurred to make the product. The costs of
all the inputs used in the manufacturing
facilities are recorded in WORK IN PROCESS
INVENTORY
4. As products are finished, they are moved to
finished goods warehouse and their costs are
recorded in FINISHED GOODS (FG)
INVENTORY
18. COST FLOWS IN A
MANUFACTURING COMPANY
RAW MATERIALS INVENTORY
Beg. Bal. - RM Materials used in Production (DM)
Materials Purchased
End. Bal. - RM
WORK IN PROCESS INVENTORY
Beg. Bal. - WIP
DM
Cost of Goods Manufactured
(COGM)
DL
OH
End. Bal. - WIP
FINISHED GOODS INVENTORY
Beg. Bal. - FG Cost of Goods Sold (COGS)
COGM
End. Bal. - FG
19. THE INVENTORY EQUATION
Beginning Inventory
+
Additions to Inventory
=
Ending Inventory
+
Items Removed from Inventory
• The inventory equation allows us to put together the following schedules:
Schedule of Total Manufacturing Costs
(of the period)
Schedule of Cost of Goods Manufactured
20. QUICK CHECK
If your inventory balance at the beginning of the
month was $1,000, you bought $100 during the
month, and sold $300 during the month, what
would be the balance at the end of the month?
A. $1,000.
B. $ 800.
C. $1,200.
D. $ 200.
$1,000 + $100 = $1,100
$1,100 - $300 = $800
21. QUICK CHECK
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
22. QUICK CHECK
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.
23. VARIABLE AND FIXED
COSTS
Activity – a quantitative measure of a firm’s output of goods or
services
Number of Chrysler vans
Pairs of Nike shoes
Tons of cement produced
Variable Costs – costs that change proportionately (in total)
with the activity level within a relevant range of activity
Fixed Costs – costs that do not change in total as activity level
changes within a relevant range of activity
Example: Publishing a magazine
Variable costs Fixed Costs
Cost of paper Rent on building
Cost of ink Salaries to reporters
Sales Commissions Depreciation on printing
equipment
Cost of lubricants for machine
Cost of operating press
24. TOTAL VARIABLE AND FIXED COSTS
Total Variable Cost
Number of units Number of units
Total Fixed Cost
25. Per Unit Variable Cost
Number of units Number of units
Per Unit Fixed Cost
VARIABLE AND FIXED COSTS PER
UNIT
26. RELEVANT RANGE
The range of activity within which the firm’s cost structure (i.e.
variable cost per unit and total fixed cost) remains unchanged
Publishing a small number of magazines (cost structure of a
small publisher)
Total Variable Cost
Number of units
Total Fixed Cost
Number of unitsRelevant Range Relevant Range
27. TOTAL COSTS
To get total costs you need to add variable costs and
fixed costs
Total Cost
Number of units
Fixed costs
The Slope is the
variable cost per
unit
Editor's Notes
Property taxes on corporate headquarters and sales commissions are period costs. All of the other costs listed are product costs.
Right. $800. This is calculated as beginning inventory of $1,000 plus purchases of $100 minus ending inventory of $300.
Right. $280,000. Take a minute and review the solution before proceeding.
Right. $760,000. Take a minute and review the solution before proceeding.