This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: production such as paint of ice cream. There is a large breadth of denominator (mass producing millions) • Actual costing system (ch. 1) vs. Normal costing system (ch. 2) o Actual costing system uses ACTUAL DL, DM, and FO… very accurate o Normal costing uses ACTUAL DM and DL, but applied overhead. Less accurate, but able to produce without having every cost down perfectly, more efficient • 3 Financial Statements: o Income statement: net revenue=income-expenses o Balance sheet: assets=liability + Owner equity o Statement of cash flows: change in cash • Journal Entry: Account debited Account credited • Cost driver=factor causing incurrence of cost • Estimated overhead/estimated machine hours=applied overhead...
View Full Document
- Spring '08
- Owner equity o Statement, DM+DL Conversion Costs, Finished Goods CGS