Chapter 2 & 6 - Pre-Class Notes

Chapter 2 & 6 - Pre-Class Notes - 1 MANAGERIAL ACCOUNTING...

Info iconThis preview shows pages 1–10. 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

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight 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: 1 MANAGERIAL ACCOUNTING RSM 222 Cost Terms, Concepts, and Classifications Cost Behaviour: Analysis and Use Chapter 2 and 6 2 Summary of Cost Classifications Costs need to be estimated and aggregated differently for different purposes Assigning costs to cost objects (traceability) Direct vs. Indirect Financial reporting Product Cost vs. Period Cost Predicting cost behaviour Fixed vs. Variable Decision making Differential Cost and Revenue Opportunity Cost Sunk Cost LO 7 3 Assigning Costs to Cost Objects Direct costs Costs that can be easily and conveniently ________to a unit of product or other cost object. Examples: Indirect costs Costs that cannot be easily and conveniently ________ to a unit of product or other cost object. Example: LO 6 4 Manufacturing Overhead Manufacturing costs that cannot be easily traced directly to specific units produced. Examples: Indirect materials and indirect labour Wages paid to employees who are Examples: Materials used to support the Examples: LO 1 5 Manufacturing Overhead Overhead - A Closer Look 6 Classifications of Costs Manufacturing costs are often classified as follows: Direct Material Direct Labour Manufacturing Overhead LO 1 7 Cost classification (Financial Reporting): Product Costs Versus Period Costs ________ costs include direct materials, direct labour, and manufacturing overhead . ________ costs include all selling costs and administrative costs. Inventory Cost of Good Sold Balance Sheet Income Statement Sale Expense Income Statement LO 2 8 Non-Manufacturing Costs All executive, organizational, and clerical costs. LO 1 Costs necessary to get the order and deliver the product. 9 Cost Classifications for Predicting Cost Behaviour How a cost will react to changes in the level of activity within the relevant range....
View Full Document

This note was uploaded on 04/03/2012 for the course RSM 222 taught by Professor D.cianflone during the Spring '10 term at University of Toronto.

Page1 / 33

Chapter 2 & 6 - Pre-Class Notes - 1 MANAGERIAL ACCOUNTING...

This preview shows document pages 1 - 10. Sign up to view the full document.

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