tailieunhanh - Lecture Managerial accounting for managers - Chapter 2: Managerial accounting and cost concepts

This chapter explains how managers need to rely on different cost classifications for different purposes. The four main purposes emphasized in this chapter include preparing external financial reports, predicting cost behavior, assigning costs to cost objects, and decision making. We’ll begin by looking at manufacturing companies because their basic activities include most of the activities found in other types of business organizations. | Managerial Accounting and Cost Concepts Chapter 2 Chapter 2: Managerial Accounting and Cost Concepts This chapter explains how managers need to rely on different cost classifications for different purposes. The four main purposes emphasized in this chapter include preparing external financial reports, predicting cost behavior, assigning costs to cost objects, and decision making. We’ll begin by looking at manufacturing companies because their basic activities include most of the activities found in other types of business organizations. Learning Objective 2-1 Identify and give examples of each of the three basic manufacturing cost categories. Learning objective 2-1 is to identify and give examples of each of the three basic manufacturing cost categories. The Product Classifications of Manufacturing Costs Direct Materials Manufacturing Overhead Direct Labor Manufacturing costs are usually grouped into three main categories: direct materials, direct labor, and manufacturing overhead. . | Managerial Accounting and Cost Concepts Chapter 2 Chapter 2: Managerial Accounting and Cost Concepts This chapter explains how managers need to rely on different cost classifications for different purposes. The four main purposes emphasized in this chapter include preparing external financial reports, predicting cost behavior, assigning costs to cost objects, and decision making. We’ll begin by looking at manufacturing companies because their basic activities include most of the activities found in other types of business organizations. Learning Objective 2-1 Identify and give examples of each of the three basic manufacturing cost categories. Learning objective 2-1 is to identify and give examples of each of the three basic manufacturing cost categories. The Product Classifications of Manufacturing Costs Direct Materials Manufacturing Overhead Direct Labor Manufacturing costs are usually grouped into three main categories: direct materials, direct labor, and manufacturing overhead. These costs are incurred to make a product. Direct Materials Raw materials that become an integral part of the product and that can be conveniently traced directly to it. Example: The flour in the dough. Direct materials are raw materials that become an integral part of the finished product and whose costs can be conveniently traced to it. Direct Labor Those labor costs that can be easily traced to individual units of product. Example: Wages paid to bakers. Direct labor consists of that portion of labor cost that can be easily traced to a product (also called touch labor). Manufacturing Overhead Manufacturing costs that cannot be easily traced directly to specific units produced. Examples: Indirect materials and indirect labor Materials used to support the production process. Examples: lubricants and cleaning supplies to maintain the bakery equipment. Manufacturing overhead includes all manufacturing costs except direct materials and direct labor. These costs cannot be easily traced to