ACCT101-Handout13

ACCT101-Handout13 - Cycle time and cycle efficiency Cycle...

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Acct 101 L12, L13, L16 Handout #13 1 Managerial Accounting Concepts Characteristics of Costs Fixed Variable By Behavior Mixed By Traceability Direct Indirect (to a product, process, department, or customer, etc.) By Controllability Controllable Non-controllable (Depend on employee’s responsibilities) Sunk Out-of-pocket By Relevance Opportunity Product (*) Direct material Direct labor Factory overhead (indirect material, indirect labor, other costs) By Function Period Ex. SG&A
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Acct 101 L12, L13, L16 Handout #13 2 Costs in financial statements Direct Materials Raw materials Indirect Material Goods in process (Work in process) Balance Sheet Finished goods Merchandiser Beginning inventory + Purchases Cost of goods available for sale - Ending inventory Cost of goods sold Income Statement Cost of goods sold Manufacturer Beginning finished goods inventory + Cost of goods manufactured (*) Cost of goods available for sale - Ending finished goods inventory Cost of goods sold
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Unformatted text preview: Cycle time and cycle efficiency Cycle Time = Process time + Inspection time + Move time + Wait time Cycle efficiency = Value-added time / Total cycle time. Acct 101 L12, L13, L16 Handout #13 3  Using the following information for Superior Manufacturing Company, prepare the income statement for the year ended December 31, 2007. (Assume a 30 % income tax.) Administrative Expenses. ....................................................................... $ 70,000 Finished Goods Inventory January 1, 20X7 . .......................................... 120,000 Cost of Goods Manufactured during the year. ........................................ 200,000 Finished Goods Inventory December 31, 20X7. ..................................... 60,000 Selling Expenses. ................................................................................... 40,000 Sales . ..................................................................................................... 680,000...
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This note was uploaded on 12/07/2009 for the course ACCT ACCT 101 taught by Professor H during the Fall '08 term at HKUST.

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ACCT101-Handout13 - Cycle time and cycle efficiency Cycle...

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