tailieunhanh - Lecture Fundamentals of cost accounting (4th edition): Chapter 11 - Lanen, Anderson, Maher
(BQ) Chapter 11 - Service department and joint cost allocation. We have seen how cost allocation is used to develop the costs of products, services, and customers. However, part of the indirect cost incurred is from departments that do not directly produce the product or service but rather provide service to the departments that do produce the product or provide the service. In this chapter we will allocate the costs of these “service” departments. We will also consider product costing when multiple products are produced from the same inputs in fixed proportions. | © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamentals of Cost Accounting, 4th edition Lanen/Anderson/Maher Service Department and Joint Cost Allocation Chapter 11 We have seen how cost allocation is used to develop the costs of products, services, and customers. However, part of the indirect cost incurred is from departments that do not directly produce the product or service but rather provide service to the departments that do produce the product or provide the service. In this chapter we will allocate the costs of these “service” departments. We will also consider product costing when multiple products are produced from the same inputs in fixed proportions. Learning Objectives LO 11-1 Explain why service costs are allocated. LO 11-2 Allocate service department costs using the direct method. LO 11-3 Allocate service department costs using the step method. LO 11-4 Allocate service department costs using the reciprocal method. LO 11-5 Use the reciprocal method for decisions. LO 11-6 Explain why joint costs are allocated. LO 11-7 Allocate joint costs using the net realizable value method. LO 11-8 Allocate joint costs using the physical quantities method. LO 11-9 Explain how cost data are used in the sell-or-process-further decision. LO 11-10 Account for by-products. LO 11-11 (Appendix) Use spreadsheets to solve reciprocal cost allocation problems. After completing this chapter you should be able to 1. Explain why service costs are allocated. 2. Allocate service department costs using the direct method. 3. Allocate service department costs using the step method. 4. Allocate service department costs using the reciprocal method. 5. Use the reciprocal method for decisions. 6. Explain why joint costs are allocated. 7. Allocate joint costs | © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamentals of Cost Accounting, 4th edition Lanen/Anderson/Maher Service Department and Joint Cost Allocation Chapter 11 We have seen how cost allocation is used to develop the costs of products, services, and customers. However, part of the indirect cost incurred is from departments that do not directly produce the product or service but rather provide service to the departments that do produce the product or provide the service. In this chapter we will allocate the costs of these “service” departments. We will also consider product costing when multiple products are produced from the same inputs in fixed proportions. Learning Objectives LO 11-1 Explain why service costs are allocated. LO 11-2 Allocate service
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