صفحه 1:
Cost Accounting
Foundations and
ٌ Evolutions
Kinney, Prather, Raiborn
0 000 7
Chapter 2
Cost Terminology and
Cost Behaviors
صفحه 2:
ie.
۰
5
* Explain assumptions about cost
۱۰/۱۱ 4 0 TSLUT hl ola Loy eTS
316 527
* List the cost classifications and explain
why the classifications are useful
* Describe the conversion process in
service and manufacturing companies
صفحه 3:
ie.
۰
5
* List product cost categories and
their components
* Calculate the Cost of Goods
Manufactured and explain how it
is used in the Income Statement
صفحه 4:
* Association with cost object:
Lefora) ey (rele یت
wants to collect or accumulate costs
* Reaction to changes in activity
* Classification on the financial
statements
صفحه 5:
ie.
۰
5
* Association with cost object
- Direct - traceable to a cost object
- Indirect - not conveniently or
practically traceable to a cost object
* treated as overhead
* allocated
صفحه 6:
ie.
۰
5
* Reaction to changes in activity
- Variable
- Fixed
- Mixed
- Step
Relevant Range - normal operating range
صفحه 7:
صفحه 8:
ie.
۰
5
* Classification on the financial
statements
- Unexpired - balance sheet assets
- Expired - income statement expenses
- Product - inventoriable costs
+ Prime - direct material and direct labor
* Conversion - direct labor and overhead
- Period - expensed in period incurred
صفحه 9:
ie.
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5
امهاهصه 1 للك
Measurable part of a product -
Direct labor *
Labor used to manufacture a product -
اك ا ا د
Overhead *
Indirect production cost -
صفحه 10:
ie.
۰
5
* Selling and administrative costs
* Distribution costs
- Cost to warehouse, transport, and/or
deliver a product or service
- Major impact on managerial decision
making
صفحه 11:
Conversion Process
Change Inputs into Outputs
4 Output
۳۳ 2
8
صفحه 12:
دای ایا 1۲11۱۸
Significant amount of labor and
machinery
Tangible output
-
جك
صفحه 13:
صفحه 14:
Product Cost - Direct
¢ Direct Material
- Conveniently and economically traced
to cost object 1
* Direct Labor
- to manufacture a product or perform a
service
- includes wages paid to direct labor
employees, production bonuses, payroll
15
- may include holiday and vacation pay,
insurance, retirement benefits NY/
صفحه 15:
0
5
* Overhead - indirect production costs
- Fringe benefits, if cannot be easily
traced to product
- Overtime, if due to random scheduling
- Cost of quality
* Prevention costs
* Appraisal costs
0515 ع1نالتة7 *
صفحه 16:
* Direct Material Variable
*Direct Labor Variable
* Overhead Variable, fixed, or
0
صفحه 17:
ie.
۰
5
Assign indirect costs to one
1 ا ل oy Cold
* To determine full absorption cost
(GAAP)
* To motivate management
* To compare alternative courses of action
for planning, controlling, and decision
۱۱
Allocation process should be
rational and systematic
صفحه 18:
0 نرب Actual
Materials ات
Actual
Direct Labor Actual
Predetermined
Overhead Actual _ Overhead Rate
صفحه 19:
ie.
۰
phe تسب
* Allows overhead to be assigned
during the period
* Compensates for fluctuations
چازتتامح 6غ 0م ماع أمم وم اقا 61
- in activity level that do not affect
fixed overhead
صفحه 20:
ie.
۰
5
* What is the difference between a
fixed and variable cost?
05 5أتاع 2ه ممدمه عععطة عط عتنه غقطتلا ٠
product cost?
٠ What are the three inventory
accounts for a manufacturing
company?