tailieunhanh - Lecture Accounting: What the numbers mean (10/e): Chapter 13 - Marshall, McManus, Viele

Chapter 13 - Cost accounting and reporting. After reading this chapter, you should be able to answer the following questions: What is the role of cost accounting as it relates to financial and managerial accounting? How does cost management play a strategic role in the organization’s value chain? What is the difference between direct and indirect costs, and how do they relate to a product or activity? . | 2008 The McGraw Hill Companies Inc. All Rights Reserved. McGraw Hill Irwin Copyright 2014 by The McGraw Hill Companies Inc. All rights reserved. Chapter 13 Cost Accounting and Reporting PowerPoint Authors Susan Coomer Galbreath . CPA Charles W. Caldwell . CMA Jon A. Booker . CPA CIA Cynthia J. Rooney . CPA McGraw Hill Irwin Copyright 2014 by The McGraw Hill Companies Inc. All rights reserved. 1-3 LO 3 Direct Costs and Indirect Costs Direct costs Indirect costs Can be easily and Cannot be easily and conveniently traced to a conveniently traced to a unit of product or other unit of product or other cost objective. cost object. Would not be incurred if the product or activity Would be incurred even was discontinued. if the product or activity was discontinued. McGraw Hill Irwin 13 3 2008 The McGraw Hill Companies Inc. All Rights Reserved. 1-4 LO 4 Costs for Cost Accounting Purposes McGraw Hill Irwin 13 4 2008 The McGraw Hill Companies Inc. All Rights Reserved. 1-5 LO 4 Product Costs Raw Direct Manufacturing Materials Labor Overhead The Product McGraw Hill Irwin 13 5 2008 The McGraw Hill Companies Inc. All Rights Reserved. 1-6 Product Costs and Period Costs LO 4 Balance Sheet Income Costs Inventories Statement Expenses Material Purchases Direct Labor Manufacturing Overhead Cost of Goods Sold Selling and Period Costs Selling and Administrative Administrative McGraw Hill Irwin 13 6 2008 The McGraw Hill Companies Inc. All Rights Reserved. 1-7 LO 5 Cost Accounting Systems Manufacturing overhead OH Applied to each Raw Tra job using a material ced predetermined dire to e ctly rate ach job THE JOB c t l y dir e ac ed j o b Tr ch Direct ea to labor 13 7 McGraw Hill Irwin 2008 The McGraw Hill Companies Inc. All Rights Reserved. 1-8 LO 6 Cost Accounting Systems The predetermined overhead rate POHR used to apply overhead to jobs is determined before the period begins. Estimated total manufacturing overhead cost for the coming period POHR Estimated total units in