012910_UGBA+102B_Discussion_Section_01

012910_UGBA+102B_Discussion_Section_01 - UGBA 102B: Section...

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Unformatted text preview: UGBA 102B: Section 1 01/29/10 Managerial Accounting & Basic Cost Concepts Syllabus and other stuff- Attendance.- Class roster.- 5 points per session attended.- Homework .- Hand in before class starts.- Grading on efforts only basis.- Office Hours .- TBD- Email .- miguel_martinez@mba.berkeley.edu- Subject: UGBA102B NNN Syllabus and other stuff- Attendance.- Class roster.- 5 points per session attended.- Homework .- Hand in before class starts.- Grading on efforts only basis.- Office Hours .- TBD- Email .- miguel_martinez@mba.berkeley.edu- Subject: UGBA102B NNN NNN=Section number Basic Cost Concepts Quick Review of key concepts. 1 . Cost Classifications. 2 . Fixed vs. Variable costs. 3 . Product vs. Period costs. 4 . Basic equations for inventory accounts. 5 . Equations for cost calculations. 6 . Manufacturing cost flow. 7 . Schedule of COGM & COGS. Basic Cost Concepts 1. Cost Classifications. Financial Reporting Financial Reporting Product vs. Period Costs Financial Planning Financial Planning Fixed vs. Variable Costs Product Costing Product Costing Direct vs. Indirect Costs Performance Evaluation Performance Evaluation Controllable vs. Noncontrollable Costs Decision Making Decision Making Relevant vs. Irrelevant (Opportunity, Sunk, & Incremental Costs) Basic Cost Concepts 2. Fixed vs. Variable Costs Variable cost- A cost that varies, in total, in direct proportion to changes in the level of activity. However, variable cost per unit is constant. Fixed cost- A cost that remains constant, in total, regardless of changes in the level of the activity. However, if expressed on a per unit basis, the average fixed cost per unit varies inversely with changes in activity. Basic Cost Concepts Product costs ( inventoriable costs ) Includes all the costs that are involved in acquiring or making a product. Product costs are expensed in the income statement when the products are sold. Period costs Includes all marketing or selling costs and administrative costs. These costs are expensed in the income statement in the period incurred. 3. Product vs. Period Costs. Basic Cost Concepts 4. Basic Equation for Inventory Accounts. Beginning balance Additions to inventory + = Ending balance Withdrawals from inventory + RAW MATERIALS INVENTORY: BRM + Purchases = ERM + DM WORK IN PROGRESS INVENTORY: BWIP + MC = EWIP + COGM FINISHED GOOD INVENTORY: BFG + COGM = EFG + COGS Basic Cost Concepts 5. Equations for Cost Calculation. DM = BRM + P ERM (Direct Materials) MC = DM + DL + MOH (Manufacturing Costs) COGM = BWIP + MC EWIP (Cost of Goods Manufactured) COGS = BFG + COGM EFG (Cost of Goods Sold) Basic Cost Concepts Raw Materials Work in Process Finished Goods Customer Direct Materials Cost of Goods Manufactured Cost of Goods Sold 6. Manufacturing Costs Flow. Basic Cost Concepts Manufacturing Work Raw Materials Costs In Process Beginning raw Direct materials materials inventory + Raw materials...
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This note was uploaded on 02/10/2011 for the course UGBA 102B taught by Professor Fan during the Spring '08 term at University of California, Berkeley.

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012910_UGBA+102B_Discussion_Section_01 - UGBA 102B: Section...

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