2009 B-5 Class Notes

2009 B-5 Class Notes - Becker CPA Review Business 5 Class...

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Becker CPA Review – Business 5 Class Notes 1 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. BUSINESS 5 CLASS NOTES Planning and Measurement , or Managerial/Cost Accounting, is the subject of BEC 5. It is estimated to be 22%-28% of the point values according to the Content Specification Outline and it breaks out into four general areas that are analyzed in greater detail in these notes: Cost measurement and cost accumulation, Financial models used for operating decisions, Planning and budgeting, and Variances and other performance measures. I. COST MEASUREMENT AND COST MEASUREMENT CONCEPTS A. Costs may be measured for GAAP (external) or managerial (internal) purposes. B. Cost drivers have a causal relationship to cost objects . C. Product costs are "inventoriable" while period costs (SG&A) are expensed in the period incurred. D. Direct costs are traceable while indirect costs , mostly manufacturing overhead items, are not traceable. Indirect costs are allocated to production by selecting a base. E. Costs may be variable, fixed or some combination of both ( mixed ) and may be expressed as a total or on a per-unit basis. F. Standard costing attempts to measure costs that "should occur" using currently attainable standards. G. Joint and by-product costing attempts to allocate the joint costs of two or more separate products. NRV method is best. II. ACCUMULATING AND ASSIGNING COSTS A. The Cost of Goods Manufactured accumulates all costs of production, adjusts for changes in Work in Process and becomes part of the Cost of Goods Sold . B.
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This note was uploaded on 02/19/2011 for the course BMGT 360 taught by Professor Spina during the Spring '07 term at Maryland.

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2009 B-5 Class Notes - Becker CPA Review Business 5 Class...

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