Read e-book online Cost accounting: an introduction to cost management systems PDF

By Philip Jagolinzer

ISBN-10: 0324015828

ISBN-13: 9780324015829

This article makes a speciality of the position "cost accounting" performs in expense administration platforms. The textual content is designed to be a place to begin that covers the basic fee accounting issues (job-order costing, procedure costing and traditional costing platforms and overhead allocation) whereas allowing teachers the liberty to stress extra fabric with case paintings and outdoors readings.

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Extra info for Cost accounting: an introduction to cost management systems

Sample text

6. Design a December 20xx report with artificially created numbers (but show how they were computed). 7. What lesson(s) have you learned from this In-Class Activity? Discussion Question 1-5 What do you think of the employee attendance report for November? What is the point of the In-Class Activity? Discussion Question 1-6 Discuss your answer to Requirement 4 of the In-Class Activity. Discussion Question 1-7 Discuss your answer to Requirement 5 of the In-Class Activity. Discussion Question 1-8 Discuss your answer to Requirement 7 of the In-Class Activity.

Test Yourself Solutions Answers: 1D, 2B, 3A, 4C, 5C, 6A, 7D, 8A, 9C, 10D 1. D. Cost accounting provides information for decision makers within an organization and focuses on accumulating cost information related to product and service costing. Page 11 2. B. The fundamental cost elements are direct materials, direct labor, and factory (or manufacturing) overhead. 3. A. The cost to make three (3) pizzas is: Ingredients: 3 pizzas × 1/2 pound each = 1 1/2 pounds; 1 1/2 pounds × $4 per pound = $ 6 Labor: 3 pizzas × 1/3 hour each = 1 hour; 1 hour × $18 per hour = 18 Overhead: 3 pizzas × 2/3 hour each = 2 hours; 2 hours × $12 per hour = 24 Total cost to make 3 pizzas $48 4 C.

The previous activity introduces some fundamental costing techniques used by accountants, as well as the three cost elements used in cost accounting: direct materials, direct labor, and overhead. The techniques and cost elements are described in more detail in the next chapter. Cost accounting, as used in this book, is narrowly focused on accumulating information associated with the cost of producing a product or providing a service. Its objective is to provide product or service cost information to decision makers (usually the managers of a department, service, or organization) so that they are better informed about their operations.

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Cost accounting: an introduction to cost management systems by Philip Jagolinzer


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