tailieunhanh - Lecture Principles of accounting (2005): Chapter 21 - Needles, Powers, Crosson

Chapter 21 - Cost systems - Job order and process costing. Chapter 21 provides an introduction to the cost-based accounting systems of job order and process costing. It covers how managers use cost information in the management cycle. Product and cost flows under a job order system and a process costing system are discussed, and job order cost cards and process cost reports are prepared. | Costing Systems: Job Order and Process Costing Multimedia Slides by: Gail A. Mestas, MAcc, New Mexico State University Chapter 21 Learning Objectives Discuss the role information about costs plays in the management cycle and explain why unit cost is important. Distinguish between the two basic types of product costing systems and identify the information each provides. Explain cost flow in a job order costing system, prepare a job order cost card, and compute product unit cost. Learning Objectives (cont’d) Explain product flow and cost flow in a process costing system. Define equivalent production and compute equivalent units. Prepare a process cost report using the FIFO costing method. Evaluate performance using information about product cost. Product Cost Information and the Management Cycle Objective 1 Discuss the role information about costs plays in the management cycle and explain why unit cost is important Product Cost Information and the Management Cycle Role of the management | Costing Systems: Job Order and Process Costing Multimedia Slides by: Gail A. Mestas, MAcc, New Mexico State University Chapter 21 Learning Objectives Discuss the role information about costs plays in the management cycle and explain why unit cost is important. Distinguish between the two basic types of product costing systems and identify the information each provides. Explain cost flow in a job order costing system, prepare a job order cost card, and compute product unit cost. Learning Objectives (cont’d) Explain product flow and cost flow in a process costing system. Define equivalent production and compute equivalent units. Prepare a process cost report using the FIFO costing method. Evaluate performance using information about product cost. Product Cost Information and the Management Cycle Objective 1 Discuss the role information about costs plays in the management cycle and explain why unit cost is important Product Cost Information and the Management Cycle Role of the management accountant Develop a management information system that provides managers with the cost information they need Managers rely on relevant and reliable cost information Uses of Information about Costs in the Management Cycle Product Cost Information and the Management Cycle Planning stage Managers use information about costs to Set performance expectations Estimate unit costs Executing stage Managers Make decisions about Controlling costs Managing the company’s activity volume Ensuring quality Negotiating prices Use timely cost and volume information and actual unit costs to support their decision making Product Cost Information and the Management Cycle (cont’d) Reviewing stage Managers watch for changes in cost and quality Compare actual and targeted total and unit costs Monitor relevant price and volume information This information is analyzed to evaluate their performance Planning and decision-making strategies are adjusted based on this evaluation Reporting stage Managers prepare .