Handout_Ch._3__1__BUS_121

Handout_Ch._3__1__BUS_121 - BUS 121 - Managerial Accounting...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
BUS 121 - Managerial Accounting Chapter 3: System Design – Job Order Costing I. Unit Cost Data A. Used for a variety of purposes. 1. Costing of inventory and CGS on financial statements, and determination of GAAP generated net income. 2. Various management cost analyses for decision making: a. Pricing of products and services. b. Adding or dropping product lines. c. Make or buy decisions B. Full Costing , also called Absorption Costing is used for GAAP generated data on financial statements; caution must be exercised if same data is used for internal management reports. II. Costing Systems A. General Cost Accounting: Periodic Inventory costing system typically used in small manufacturing concerns where costing data is accumulated in month-end reporting. B. Job Order Costing: System used when there is one prototype job, or a number of distinct jobs, products, or batches of product. Most manufacturers use perpetual inventory systems. C.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.
Ask a homework question - tutors are online