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USC | ACCT 372
Internal Reporting Issues
Professors
- Cecil Jackson,
- ,
- Geiger,
- Jackson,
- Batta,
- Erkens
61 sample documents related to ACCT 372
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USC ACCT 372
ACCT 372 Spring 2011 SCHEDULE DAY DATE TOPIC 1. Mar 8 2. Mar 10 3. Mar 22 4. Mar 24 5. Cost Management Systems, Cost Terminology, Product Cost ADVAN CE READI NG CASE PROBLEMS Ch2 Absorption/Va Ch 3 riable Process Costing Process Ch6 Appendix Costing 2-47 -
USC ACCT 372
ACCT 372 Internal Reporting Issues Spring 2011 SEC 14050R T/Th :10:00 11:50 am ACC303 Dr. Cecil W. Jackson Off: Acc 110 Office Hours: W 12:30 -2:30pm Th 4:00pm 5:00 pm SEC 14051R T/Th 12:00-1.50 pm ACC303 ceciljac@marshall.usc.edu (213)740-5020 SEC 14052R -
USC ACCT 372
Job -Costing systems Distinct, identifiable units of a product or service 1. Examples: custom-made machines, houses Process-Costing systems Masses of identical or similar units of a product or service 2. Examples: food, chemical processing Process costi -
USC ACCT 372
First-In, First-Out process-costing method A distinctive feature of FIFO process-costing method is that work done on beginning inventory is kept separate from work done in the current period Result of the process Two critical figures arise out of step 5 o -
USC ACCT 372
Joint Cost terminology Joint costs costs of a single production process that yields multiple products simultaneously Split-off point the place in a joint production process where two or more products become separately identifiable Separate costs all costs -
USC ACCT 372
Sales Value at Split-off Method Uses the sales value of the entire production of the accounting period to calculate allocation percentage Ignores inventories Net Realizable Value Method Allocates joint costs to joint products on the basis of relative N -
USC ACCT 372
Broad Averaging Historically, firms produced a limited variety of goods while their indirect costs were relatively small Allocating overhead costs was simple: use broad averages to allocate costs uniformly regardless of how they are actually incurred T -
USC ACCT 372
Cost Allocation Assigning indirect costs to cost objects Indirect costs cannot be traced to the cost object in a cost-effective way Indirect costs often comprises a large percentage of total overall costs Criteria for cost-allocation decisions Cause-a -
USC ACCT 372
Choices about responsibility centers Regardless of the degree of decentralization, management control systems use one or a mix of the four types of responsibility centers: 1. Cost center 2. Revenue center 3. Profit center 4. Investment center Transfer pr -
USC ACCT 372
Management control systems Management control systems are a means of gathering and using information to aid and coordinate the planning and control decisions throughout an organization and to guide the behavior of its manager and other employees Many ma -
USC ACCT 372
Inventory management in retail organizations Inventory management is planning, coordinating, and controlling activities related to the flow of inventory into, through, and out of an organization Costs associated with goods for sale Managing inventories -
USC ACCT 372
Cost of a prediction error Three steps in determining the cost of a prediction error: 1. Compute the monetary outcome from the best action that could be taken, given the actual amount of the cost per purchase order. 2. Compute the monetary outcome from t -
USC ACCT 372
Cost Management 2-31 Chapter 2 Solutions Renka Heaters Raw Material 105 365 385 85 2-34 Work in Process 230 385 450 775 Finished Goods 130 1660 1660 180 1770 20 Howell Corporation Raw Material 15 325 320 20 Work in Process 10 320 100 220 Finished Goods 70 -
USC ACCT 372
Internal Reporting Issues Chapter 2 Introduction to Cost Terms and Purposes Dr. Dale R. Geiger CMA CGFM drgeiger@marshall.usc.edu Cost Use Most of this course will deal with internal reporting issues However, cost is also used in external reporting COG -
USC ACCT 372
Cost Management Quiz: Chapter 2 Name_ Given the following information: Purchases Labor Overhead 40 20 15 Beginning Raw Material 90 WIP 40 Finished Goods 20 Ending 70 40 40 1._ What is cost of goods manufactured? 2._ What \"target\" for labor yields a cost o -
USC ACCT 372
Simple Cost Relationships Variable Cost $ Variable Cost per Unit $ units units Fixed Cost $ Fixed Cost per Unit $ units units Cost Tradeoffs Alternative One Point of Indifference $200 $100 Alternative Two 50 100 150 200 units Breakeven Analysis Rev VarCos -
USC ACCT 372
Cost Management Quiz: Chapter 2 Name_ Given the following information: Purchases Labor Overhead 40 20 15 Beginning Raw Material 90 WIP 40 Finished Goods 20 Ending 70 40 40 1._ What is cost of goods manufactured? Raw 90 40 60 70 WIP 40 60 20 15 95 = cgm = -
USC ACCT 372
Cost Management 3-16 1 2 3 4 Chapter 3 Solutions rev 2000 2000 1000 1500 vc 500 1500 700 900 fc 300 300 300 300 oi 1200 200 0 300 cm 1500 500 300 600 cm% 0.75 0.25 30% 40% oi 0.200 0.400 0.000 0.110 0.290 0.360 0.040 0.220 0.510 cm 2.000 2.200 10% increas -
USC ACCT 372
Cost Management Quiz: Chapter 3 Name_ 1._ At what quantity is breakeven obtained if fixed cost is $5000, selling price per unit is $25, and variable cost per unit is $15? 2._ At what quantity is a 20% profit earned given the cost and price structure state -
USC ACCT 372
Cost Management Chapter 4 Template General Template for Building Cost of a Cost Object From Its Direct Components and Allocation of a Share of Indirect Costs as Calculated using a Basis of Distribution cost object indirect indirect indirect pool a pool b -
USC ACCT 372
Cost Management Certificate Course Managerial Costings Role in Winning the Cost War 2000-09 Dr. Dale R. Geiger CMA CGFM 760-500-7673 drgeiger@nps.edu The Role of Managerial Costing Managerial Costing Relevant Costs Customized Views True Resource Use C -
USC ACCT 372
Keating and Associates I 4-32 support $2.2M 1, 2, 3 hr tot labor 40K 1600(25) Indirect Allocation Rate = 2200/40 = 55 $/hr indirect cost direct cost total $2.6M labor 104K(25) Direct Cost Rate = 2600/40 = 65 $/hr 4 Richardson Job uses 100 hours cost = 65( -
USC ACCT 372
Cost Management Chapter 5 Template indirect indirect indirect pool a pool b pool c General Template for Building Cost of a Cost Object From Its Direct Components and Allocation of a Share of Indirect Costs as Calculated using a Basis of Distribution cost -
USC ACCT 372
Cost Management Quiz: Chapter 4 Name_ A company has four divisions. It seeks to distribution $300,000 corporate G&A to divisions. Division Sales and Personnel are shown below: Sales ($K) Personnel Div A 300 100 Div B 300 200 Div C 400 300 Div D 500 400 1. -
USC ACCT 372
Cost Management Chapter 5 Solutions 5-17 Vineyard Test Laboratories $1.19M total cost HT test hrs K 70K cost object cost $K $/hr test hrs indirect cost direct cost HT test hrs K $350K equip $430K setup $264K design cost $K $/test hr setup hrs K test hrs s -
USC ACCT 372
Cost Management 6-17 Chapter 6 Solutions Mendez Company Raw Material Work in Process Finished Goods 15 x 200 25 beg + ins - outs= end 15 + x - 200 = 25 x = 210 6-18 Inglenook Company Raw Material 50 Work in Process Finished Goods Work in Process Finished -
USC ACCT 372
Cost Management Quiz: Chapter 6 Name_ A car manufacturer is planning to sell 200, 300, and 400 cars of models A, B and C, respectively. Models A requires four full sized tires and one small temporary tire. Models B and C require five full sized tires and -
USC ACCT 372
Cost Management 7-17 Chapter 7 Solutions Connor Company units price/unit sales actual results 8.8 performance variance - flexible budget 8.8 material/unit material cost 364 (12.0) 40 352 labor/unit labor cost 78 (7.6) 8 70.4 (4.4) 12 105.6 marketing/unit -
USC ACCT 372
Cost Management Chapter 8 Template units price/unit sales actual results actual actual actual performance variance * * * flexible budget actual fcst * sales volume variance * * * static budget fcst fcst fcst variable/unit variable cost fixed cost actual a -
USC ACCT 372
Cost Management Quiz: Chapter 7 Name_ A company has the following forecast and actual data: Unit price Units Variable Cost Fixed Cost Forecast 12 100 500 320 Actual 10 130 600 300 1._ What is the Sales Volume Variance for profit? 2._ What is Performance ( -
USC ACCT 372
Cost Management Chapter 8 Solutions units price/unit sales actual results actual actual actual performance variance * * * flexible sales volume static budget variance budget actual * fcst fcst * fcst * * fcst variable/unit variable cost fixed cost actual -
USC ACCT 372
Cumulative Average Learning Curve trials 1 2 4 8 event total cum avg a a a b a+b (a+b)/2 d a+b+c+d (a+b+c+d)/4 h a+b+c+d+e+f+g+h (a+b+c+d+e+f+g+h)/8 calc % x% x% x% x% as trials double the cum avg cost is reduced by the calc% factor (a+b)/2 = x%a (a+b+c+d -
USC ACCT 372
Cost Management Quiz: Chapter 8 Name_ An avocado grower predicted use of 20 acre feet of water costing $360 per acre foot. He received a 33% reduction in the cost per acre foot by switching to interruptible supply. He actually used 25 acre feet. 1._What w -
USC ACCT 372
Cost Management Quiz: Chapter 10 Name_ A company produced its first unit at a cost of $316,049 and anticipates a 75% cumulative average learning curve based on past experience. It can sell the units at $100,000. 1._ What is profit after producing eight un -
USC ACCT 372
Cost Management Certificate Course Determining Precision Levels 2000-09 Dr. Dale R. Geiger CMA CGFM 760-500-7673 drgeiger@nps.edu Choosing Level of Precision Goal: Managerially Useful Information for Cost Warrior Decision Making Question: How Much Prec -
USC ACCT 372
Cost Management Quiz: Chapter 11 Name_ Consider a steel mill where raw material availability limits production to 5000 tons. It can produce any amount of the following products up to that products production capacity. Equipment Original Cost ($M) Revenue -
USC ACCT 372
Breakeven Analysis Worksheet Dale R. Geiger 2011 Welcome to the Breakeven Analysis workbook. In this exercise you will be determine the Breakeven point, and gain an understanding of how you mig your cost managing efforts through manipulation of revenue a -
USC ACCT 372
CHAPTER 2 COST TERMINOLOGY AND COST BEHAVIORS QUESTIONS 1. The term cost is used to refer to so many different concepts that an adjective must be attached to identify which particular type of cost is being discussed. For example, there are fixed cost -
USC ACCT 372
CHAPTER 18 SPOILAGE, REWORK, AND SCRAP 18-1 Managers have found that improved quality and intolerance for high spoilage have lowered overall costs and increased sales. 18-2 Spoilage-units of production that do not meet the standards required by custo -
USC ACCT 372
CHAPTER 12 PRICING DECISIONS AND COST MANAGEMENT 12-1 The three major influences on pricing decisions are 1. Customers 2. Competitors 3. Costs 12-2 Not necessarily. For a one-time-only special order, the relevant costs are only those costs that will -
USC ACCT 372
CHAPTER 1 THE ACCOUNTANT\'S ROLE IN THE ORGANIZATION See the front matter of this Solutions Manual for suggestions regarding your choices of assignment material for each chapter. 1-1 Management accounting measures and reports financial and nonfinancia -
USC ACCT 372
CHAPTER 7 FLEXIBLE BUDGETS, DIRECT-COST VARIANCES, AND MANAGEMENT CONTROL 7-1 Management by exception is the practice of concentrating on areas not operating as expected and giving less attention to areas operating as expected. Variance analysis help -
USC ACCT 372
CHAPTER 14 COST ALLOCATION, CUSTOMER-PROFITABILITY ANALYSIS, AND SALES-VARIANCE ANALYSIS 14-1 Disagree. Cost accounting data plays a key role in many management planning and control decisions. The division president will be able to make better operat -
USC ACCT 372
CHAPTER 22 MANAGEMENT CONTROL SYSTEMS, TRANSFER PRICING, AND MULTINATIONAL CONSIDERATIONS 22-1 A management control system is a means of gathering and using information to aid and coordinate the planning and control decisions throughout an organizati -
USC ACCT 372
CHAPTER 20 INVENTORY MANAGEMENT, JUST-IN-TIME, AND BACKFLUSH COSTING 20-1 Cost of goods sold (in retail organizations) or direct materials costs (in organizations with a manufacturing function) as a percentage of sales frequently exceeds net income a -
USC ACCT 372
CHAPTER 21 CAPITAL BUDGETING AND COST ANALYSIS 21-1 No. Capital budgeting focuses on an individual investment project throughout its life, recognizing the time value of money. The life of a project is often longer than a year. Accrual accounting focu -
USC ACCT 372
CHAPTER 3 COST-VOLUME-PROFIT ANALYSIS NOTATION USED IN CHAPTER 3 SOLUTIONS SP: VCU: CMU: FC: TOI: Selling price Variable cost per unit Contribution margin per unit Fixed costs Target operating income 3-1 Cost-volume-profit (CVP) analysis examines th -
USC ACCT 372
CHAPTER 5 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT 5-1 Broad averaging (or peanut-butter costing) describes a costing approach that uses broad averages for assigning (or spreading, as in spreading peanut butter) the cost of resources unif -
USC ACCT 372
CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-1 a. b. c. d. The budgeting cycle includes the following elements: Planning the performance of the company as a whole as well as planning the performance of its subunits. Management agrees on wh -
USC ACCT 372
CHAPTER 23 PERFORMANCE MEASUREMENT, COMPENSATION, AND MULTINATIONAL CONSIDERATIONS 23-1 Examples of financial and nonfinancial measures of performance are: Financial: ROI, residual income, economic value added, and return on sales. Nonfinancial: Cust -
USC ACCT 372
CHAPTER 19 BALANCED SCORECARD: QUALITY, TIME, AND THE THEORY OF CONSTRAINTS 19-1 Quality costs (including the opportunity cost of lost sales because of poor quality) can be as much as 10% to 20% of sales revenues of many organizations. Quality-improv -
USC ACCT 372
CHAPTER 4 JOB COSTING 4-1 Cost poola grouping of individual cost items. Cost tracingthe assigning of direct costs to the chosen cost object. Cost allocationthe assigning of indirect costs to the chosen cost object. Cost-allocation basea factor that l -
USC ACCT 372
CHAPTER 17 PROCESS COSTING 17-1 Industries using process costing in their manufacturing area include chemical processing, oil refining, pharmaceuticals, plastics, brick and tile manufacturing, semiconductor chips, beverages, and breakfast cereals. 17 -
USC ACCT 372
CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS 16-1 Exhibit 16-1 presents nine examples of joint products from four different general industries. These include: Industry Separable Products at the Splitoff Point Food Processing: Lamb Lamb -
USC ACCT 372
CHAPTER 15 ALLOCATION OF SUPPORT-DEPARTMENT COSTS, COMMON COSTS, AND REVENUES 15-1 The single-rate (cost-allocation) method makes no distinction between fixed costs and variable costs in the cost pool. It allocates costs in each cost pool to cost obj -
USC ACCT 372
CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION 11-1 1. 2. 3. 4. 5. The five steps in the decision process outlined in Exhibit 11-1 of the text are Obtain information Make predictions about future costs Choose an alternative Implement the decisio -
USC ACCT 372
CHAPTER 10 DETERMINING HOW COSTS BEHAVE 10-1 1. 2. The two assumptions are Variations in the level of a single activity (the cost driver) explain the variations in the related total costs. Cost behavior is approximated by a linear cost function withi -
USC ACCT 372
CHAPTER 9 INVENTORY COSTING AND CAPACITY ANALYSIS 9-1 No. Differences in operating income between variable costing and absorption costing are due to accounting for fixed manufacturing costs. Under variable costing only variable manufacturing costs ar -
USC ACCT 372
CHAPTER 8 FLEXIBLE BUDGETS, OVERHEAD COST VARIANCES, AND MANAGEMENT CONTROL 8-1 Effective planning of variable overhead costs involves: 1. Planning to undertake only those variable overhead activities that add value for customers using the product or -
USC ACCT 372
CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-1 A cost object is anything for which a separate measurement of costs is desired. Examples include a product, a service, a project, a customer, a brand category, an activity, and a department. 2- -
USC ACCT 372
CHAPTER 13 STRATEGY, BALANCED SCORECARD, AND STRATEGIC PROFITABILITY ANALYSIS 13-1 Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. 13-2 The five key forces to
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