tailieunhanh - Lecture Managerial accounting: Chapter 4 - Weygandt, Kieso, & Kimmel

Chapter 4 - Activity-based costing. 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, identify the activity cost pools used in activity-based costing, identify and use the activity cost drivers in activity-based costing, | John Wiley & Sons, Inc. Prepared by Karleen Nordquist The College of St. Benedict. and St. John’s University Managerial Accounting Weygandt, Kieso, & Kimmel Chapter 4 Activity-Based Costing After studying this chapter, you should be able to: 1 Recognize the difference between traditional costing and activity-based costing. 2 Identify the steps in the development of an activity-based costing system. 3 Identify the activity cost pools used in activity-based costing. 4 Identify and use the activity cost drivers in activity-based costing. Chapter 4 Activity-Based Costing After studying this chapter, you should be able to: 5 Understand the benefits and limitations of activity-based costing. 6 Differentiate between value-added and nonvalue-added activities. 7 Understand the value of a hierarchy of activity levels to activity-based costing. 8 Explain just-in-time (JIT) processing. Chapter 4 Activity-Based Costing Preview of Chapter 4 ABC vs. Traditional Costing Traditional Costing . | John Wiley & Sons, Inc. Prepared by Karleen Nordquist The College of St. Benedict. and St. John’s University Managerial Accounting Weygandt, Kieso, & Kimmel Chapter 4 Activity-Based Costing After studying this chapter, you should be able to: 1 Recognize the difference between traditional costing and activity-based costing. 2 Identify the steps in the development of an activity-based costing system. 3 Identify the activity cost pools used in activity-based costing. 4 Identify and use the activity cost drivers in activity-based costing. Chapter 4 Activity-Based Costing After studying this chapter, you should be able to: 5 Understand the benefits and limitations of activity-based costing. 6 Differentiate between value-added and nonvalue-added activities. 7 Understand the value of a hierarchy of activity levels to activity-based costing. 8 Explain just-in-time (JIT) processing. Chapter 4 Activity-Based Costing Preview of Chapter 4 ABC vs. Traditional Costing Traditional Costing Systems Need for New Costing Systems Activity-Based Costing Illustration of Traditional Costing Versus ABC Unit Costs Under Traditional Costing Unit Costs Under ABC Comparing Unit Costs ACTIVITY-BASED COSTING Preview of Chapter 4 ABC: A Closer Look Benefits Limitations When to Switch to ABC Value-Added Versus Nonvalue-Added Activities Hierarchy of Activity Levels Just-in-Time Processing Objective Elements Benefits ACTIVITY-BASED COSTING Recognize the difference between traditional costing and activity-based costing. Study Objective 1 Traditional Costing Systems Often the most difficult part of computing accurate unit costs is determining the proper amount of overhead cost to assign to each product, service, or job. Unlike direct materials and direct labor costs which can usually be easily traced to the product, overhead is an indirect or common cost that generally cannot be traced to a product. Traditional Costing Systems In Chapters 2 and 3 a single predetermined overhead rate was used