ACCT3023notes031711 - Week 2 Thursday, March 17, 2011...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Week 2 Thursday, March 17, 2011 Homework: pg. 47- Questions 1 15 ( Due at the start of next class) pg. 47-50 Multiple Choice 2-1 2-18 Chapter 2 Basic Managerial Accounting Concepts What is Cost? o Amount of cash or cash equivalent sacrificed for goods and/or service o What you pay for something as a manufacturer Expenses: (Expired Cost) o As cost are used up in the production of revenues, they are said to expired I.e. When a product is shipped it becomes an expense. Cost V. Price o Cost is what we pay to make it o Price is what we sell it for Accumulating Cost o The way that cost is measured and recorded Cost Objectives o Any items for which cost are measured and assigned I.e. Products, customers, departments Assigning Cost o Where the cost is coming from and who is responsible for it. o I.e. Phone bill = 950, Sales is assigned $350 of it and Manufacturing is assigned $600 of it. o Cost can be assigned in a number of ways (methods will be covered in later chapters) o Some methods are more accurate, but time consuming I.e. Activity Based Costing o While others are quite simple but not as precise I.e. Traditional Costing Types of Cost Direct Cost o Cost that can be easily measured and accurately traced to a cost object o Relationship between the cost and the object can be physically observed Indirect Cost o Cost that cannot be easily traced to a cost object...
View Full Document

This note was uploaded on 04/21/2011 for the course MGMT 111 taught by Professor Michael during the Spring '11 term at CUNY Graduate School of Journalism.

Page1 / 4

ACCT3023notes031711 - Week 2 Thursday, March 17, 2011...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online