Chapter 2 - Chapter2: o Service Provideaserviceonly...

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Chapter 2: Building Blocks of Managerial Accounting 3 types of profit seeking companies o Service Provide a service only No inventory o Merchandisers One inventory account (merchandise inventory) Includes cost plus freight in and taxes etc. o Manufacturers Use labor and other inputs to convert raw materials into  finished products 3 inventory accounts Raw materials Work in process Finished goods Value Chain o Activities that add value to products and services and cost money Design Production/Purchases Marketing Distribution Customer Service Cost Object o Anything for which managers want a separate measurement of cost Direct cost Indirect cost Two definitions of product cost o Total Costs Used internally only  o Inventorial product cost Used for eternal reporting Includes: Purchase price Cost to get ready for sale
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This note was uploaded on 03/01/2012 for the course ACG 2071 taught by Professor Sumbiznatch during the Spring '06 term at University of Florida.

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Chapter 2 - Chapter2: o Service Provideaserviceonly...

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