Accounting Ch13 part 1

Accounting Ch13 part 1 - Chapter 13: Cost Accounting and...

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Chapter 13: Cost Accounting and Reporting Cost accounting is a subset of managerial accounting that relates primarily to the accumulation and determination of product, process, or service costs. Cost management is the process of using cost information from the accounting system to manage the activities of the organization. The value chain is the sequence of functions and related activities that, over the life of a product or service, can ultimately make a difference to the customer. After costs are accumulated, they are assigned to a point of reference, called a cost object, for which the manager is interested in observing a separate cost measurement. Cost accumulation is the process of collecting and recording transaction data through the accounting information system. Cost pool is costs that have been accumulated for assignment to a cost object. Cost assignment is the process of attributing an appropriate amount of cost in the cost pool to each cost object. Direct and indirect costs are terms used to relate a cost to a product or activity.
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This note was uploaded on 03/02/2011 for the course ACCT 502 taught by Professor Jaggi during the Fall '10 term at Rutgers.

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Accounting Ch13 part 1 - Chapter 13: Cost Accounting and...

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