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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...
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This note was uploaded on 01/17/2012 for the course BUSI 101 taught by Professor Skender during the Spring '08 term at UNC.
- Spring '08