tailieunhanh - Lecture Accounting: Tools for business decision making (5th edition): Chapter 17 - Kimmel, Weygandt, Kieso

Chapter 17 - Activity-based costing. In this chapter students will be able to: Discuss the difference between traditional costing and activity-based costing, apply activity-based costing to a manufacturer, explain the benefits and limitations of activity-based costing, apply activity-based costing to service industries. | ACTIVITY-BASED COSTING Accounting, Fifth Edition 17 After studying this chapter, you should be able to: Recognize the difference between traditional costing and activity-based costing. Identify the steps in the development of an activity-based costing system. Know how companies identify the activity cost pools used in activity-based costing. Know how companies identify and use cost drivers in activity-based costing. Understand the benefits and limitations of activity-based costing. Differentiate between value-added and non–value added activities. Understand the value of using activity levels in activity-based costing. Apply activity-based costing to service industries. Learning Objectives Preview of Chapter 17 Accounting Fifth Edition Kimmel Weygandt Kieso Allocates overhead using a single predetermined rate. Job order costing: direct labor cost may be the relevant activity base. Process costing: machine hours may be the relevant activity base. Assumption was satisfactory when direct labor was a major portion of total manufacturing costs. Wide acceptance of a high correlation between direct labor and overhead costs. Traditional Costing Systems Traditional Costing and Activity-Based Costing LO1 Recognize the difference between traditional costing and activity-based costing. The Need for a New Approach Tremendous change in manufacturing and service industries. Decrease in amount of direct labor usage. Significant increase in total overhead costs. Inappropriate to use plant-wide predetermined overhead rates when a lack of correlation exists. Complex manufacturing processes may require multiple allocation bases; this approach is called Activity-Based Costing (ABC). LO1 Recognize the difference between traditional costing and activity-based costing. Illustration 17-1 Traditional one-stage costing system Traditional Costing and Activity-Based Costing Activity-Based Costing LO1 Recognize the difference between traditional costing and activity-based costing. Allocates . | ACTIVITY-BASED COSTING Accounting, Fifth Edition 17 After studying this chapter, you should be able to: Recognize the difference between traditional costing and activity-based costing. Identify the steps in the development of an activity-based costing system. Know how companies identify the activity cost pools used in activity-based costing. Know how companies identify and use cost drivers in activity-based costing. Understand the benefits and limitations of activity-based costing. Differentiate between value-added and non–value added activities. Understand the value of using activity levels in activity-based costing. Apply activity-based costing to service industries. Learning Objectives Preview of Chapter 17 Accounting Fifth Edition Kimmel Weygandt Kieso Allocates overhead using a single predetermined rate. Job order costing: direct labor cost may be the relevant activity base. Process costing: machine hours may be the relevant activity base. Assumption was satisfactory when direct

• Kế toán - Kiểm toán
• Activity based costing
• Traditional costing systems
• Financial Statements
• Making business decision
• Business decision tool
• Lecture Accounting
• Financial accounting
• Lecture Financial accounting
• Accounting information
• Management accounting
• Accounting standards
• Accounting equation
• Intermediate accounting
• Lecture Intermediate accounting
• Accounting process
• Accounting processing cycle
• Managerial accounting
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Merchandising operations
• Lecture Accounting 1
• Accounting for main transactions
• Accounting for purchases
• Accounting for sales
• Accounting for expenses
• Principle of accounting
• Lecture Principle of accounting
• The basic accounting equation
• Transaction analysis in accounting equation
• Calculate the accounting equation
• Lecture Advanced financial accounting
• Bài giảng Kế toán tài chính nâng cao
• Advanced financial accounting
• Accounting policies
• Accounting estimate
• Retrospective application
• Changes in accounting estimates
• Retrospective restatements
• Accounting assumptions
• Lecture Management accounting
• Bài giảng Kế toán quản trị
• Nature of management accounting
• Component of accounting system
• Financial system
• Lecture Accounting and financial system
• Ledger accounting
• Trial balance
• Completing the accounting cycle
• Accounting cycle
• Accounting worksheet
• Classified balance sheet
• Accounting changes
• Error corrections
• Accounting choices
• Accounting for business
• Lecture Accounting for business
• Accounting entity
• Classification of assets
• Accounting equation transactions