Budgeting for Planning and Control. Decentralization: Responsibility Accounting, Performance. Evaluation, and Transfer Pricing. Integrative Exercises. Strategic Cost Management. Activity-Based Management. Quality and Environmental Cost Management. Lean Accounting and Productivity Measurement.
Cost-Volume-Profit Analysis. Pricing and Profitability Analysis. Capital Investment. Related Books Free with a 30 day trial from Scribd. And Everyone Else's Lindsey Stanberry. Dan Ariely. The Behavioral Investor Daniel Crosby. Related Audiobooks Free with a 30 day trial from Scribd. The 9. The Intelligent Investor Benjamin Graham. Harv Eker. The Intelligent Investor Rev Ed. Benjamin Graham. Dwi Nugraha at Majelis Permusyawaratan Mahasiswa. Cristine Andrea Dalistan.
Show More. Views Total views. Actions Shares. No notes for slide. Product costing accuracy means assigning the cost of the resources consumed by a cost object to that cost object. A cost object is any item for which costs are measured and assigned, including such things as products, plants, projects, depart- ments, and activities. An activity is a basic unit of work performed within an organization. Examples include material handling, inspection, purchasing, billing, and maintenance.
A direct cost is a cost that can be traced to a cost object. An indirect cost is a cost that cannot be traced to cost objects. Traceability is the ability to assign a cost directly to a cost object in an economically feasible way using a causal relationship. Allocation is the assignment of indirect costs to cost objects based on convenience or as- sumed linkages. Drivers are factors that cause changes in resource usage, activity usage, costs, and revenues.
Resource drivers measure the demands placed on resources by activities and are used to assign the cost of resources to activities. Example: time used to assign the cost of supervision to individual activi- ties. Activity drivers measure the demands placed on activities by cost objects and are used to assign the cost of activities to cost objects.
Example: number of inspection hours used to assign the cost of inspection to individual products. Direct tracing is the process of assigning costs to cost objects based on physically observable causal relationships. Driver trac- ing is assigning costs using drivers, which are causal factors. The driver approach re- lies on identification of factors that allegedly capture the causal relationship.
Direct trac- ing relies on physical observation of the causal relationship and, therefore, is more reliable. Driver tracing is the use of drivers to trace costs to cost objects. Often, this means that costs are first traced to activities using re- source drivers and then to cost objects using activity drivers. A tangible product is a good that is made by converting raw materials through the use of labor and capital inputs. Services differ from tangible products on four important dimensions: intangibility, peri- shability, inseparability, and heterogeneity.
Intangibility means that buyers of services cannot see, feel, taste, or hear a service be- fore it is bought. Perishability means that services cannot be stored. Inseparability means that producers of services and buy- ers of services must be in direct contact not true for tangible products.
Heterogeneity means that there is a greater chance of var- iation in the performance of services than in the production of products. Three examples of product cost definitions are value-chain, operating, and traditional definitions. The value-chain definition in- cludes cost assignments for all value-chain activities.
Operating product costs include all costs except for research and development. Traditional product costs include only pro- duction costs. Different costs are needed because they serve different managerial ob- jectives. The three cost elements that determine the cost of making a product are direct mate- rials, direct labor, and overhead. The income statement for a service firm does not need a supporting cost of goods manufactured schedule.
Because services cannot be stored, the cost of services pro- 2. There are six essential differences. Activity- based cost management systems use more drivers; are tracing intensive instead of allo- cation intensive; use broad, flexible product cost definitions; focus on managing activities instead of managing costs; emphasize sys- temwide performance over individual unit performance; and use both nonfinancial and financial performance measures.
Functional- based cost management systems emphas- ize only financial measures. For companies that have increased decision error costs and decreased measurement costs, a move to an activity-based cost management system is called for. Factors that affect the decision to move to an activi- ty-based cost management system include more powerful and cheaper computing ca- pabilities, increased competition, more fo- cused production by competitors, deregula- tion, and JIT manufacturing.
Driver tracing — the miles driven is an appropriate driver for the cost of gas, oil, and wear and tear on tires, etc. Direct tracing — the receipt for the lunch will be submitted for reim- bursement. Direct tracing — Mandy will have a receipt for the stamps and photocopy- ing services purchased. Allocation — Jed will probably add up the costs for a week or a month and divide that total by the number of jobs.
If the lawns differ significantly in mowing area, he could divide by the number of hours worked direct la- bor hours and get a cost per labor hour. Number of statements b. Pounds of laundry c. Number of sales orders d. Number of purchase orders e. Number of inspections also inspection hours f. Assembly hours g. Hours of care h. Processing hours number of returns less desirable i.
Number of parts number of purchase orders j. Hours of therapy 2—3 a. Direct tracing b. Allocation c. Direct tracing d. Direct tracing e. Allocation f. Allocation g. Driver tracing — number of employees h. Direct tracing i. Direct tracing 4. Solutions Manual for Cost Management 5th Edition quantity. Previous Product. Instant download after payment.
Heitger It is not a secret that teaching process is quite difficult task and specially for this purpose we made Solutions Manual for Cost Management 5th Edition by Don R. By purchasing this Solutions Manual for Cost and Management Accounting 9th Edition by Colin Drury you will get all answers for the exercises and tasks for the following chapters of the book: Introduction to Cost Management. Basic Cost Management Concepts.
Cost Behavior. Activity-Based Costing. Process Costing. Budgeting for Planning and Control. Decentralization: Responsibility Accounting, Performance.
0コメント