Acc200Day17 - Accy 200 Day 17 edit Master subtitle style...

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Click to edit Master subtitle style Accy 200 Day 17 Peter A. Silhan
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Agenda CVP review Fixed Overhead Issues Absorption vs. Variable Costing “ABC” Preview Review HW4b Q&A
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CVP Review Obj1 6
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CVP Cause-Effect Diagram Chang e in Profit Chang e in SP Change in Volume Chang e in VC Chang e in FC Note: Profit = (p-c)Q - FC e.g., New customers because of PROMO e.g., Cost of Advertising e.g., cost of PROMO price concessions © pas 2004
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Cost Categories D M D L D i r e c t C o s t ( t r a c e a b l e ) m f g a c t i v i t y V O H F O H I n d i r e c t C o s t ( n o n - t r a c e a b l e ) m P r o d u c t C o s t ( M f g C o s t ) V C F C D o s t ( t r a c e a b l e ) n o n - m V C F C I n d i r e c t C o s t ( n o n - t r a c e a b l e ) n o n - m f g a c t i v i t y P e r i o d C o s t ( N o n - M o s t ) C o s t Ch13 is most concerned about accounting for manufacturing Overhead Costs
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Raw Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling and Administrative Expenses Fixed Selling and Administrative Expenses Variable Costing Absorption Costing Produc t Costs Period Costs Produc t Costs Period Costs Absorption and Variable Costing Ch1 External View: Financial Accounting Internal View: Managerial Accounting
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Balance Sheet Costs Inventories Income Statement Expenses Cost of Goods Sold Selling and Administrative Period Costs Work in Process Finished Goods Raw Materials Variable Manufacturing Overhead DM purchases DL Selling and Administrative Fixed Manufacturing Overhead Absorption costing Absorption versus Variable Costing “absorbed” into INV Variable costing
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“Operating” Profit (Ch 13 versus Ch12) Sales Less: Cost of Goods Sold Gross Profit Less: SGA Operating Profit Sales (TR) Less: Variable Costs (VC) Contribution Margin (CM) Less: Fixed Costs (FC) Operating Profit Ch 13 Ch 12 (Manufacturing (all firms)
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Generic Concept : Cost Accumulation and Cost Pool Cost Object Cost Assignment Cost Object Cost Assignment Cost Object “Cost objects” are products, jobs, and services.
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“Traceable” The Product Direct Materials Direct Labor Manufact uring Overhead Costs for Cost Accounting
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Inventory Cost Flows Work in Process Finished Goods Raw Material (e.g., parts, etc.) D M CGM CGS Customer DL OH
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DM Direct materials are the ingredients of the product.
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This note was uploaded on 10/16/2010 for the course ACCY Accy 200 taught by Professor Xxx during the Spring '10 term at University of Illinois at Urbana–Champaign.

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Acc200Day17 - Accy 200 Day 17 edit Master subtitle style...

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