Unformatted text preview: t change. All that changes with different allocation bases and stepdown sequences is the
distribution of total costs among the various cost centers.
Decision #6. Attaching Costs to Cost Objects
A final decision in a full cost accounting system concerns the way production center costs are “attached” to an
organization's cost objects. Although there is a range of choices, we will look here at only the two ends of the spec____________________________________________________________________________________________________________
David W. Young • Management Accounting for Managers • Chapter 1
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trum. At one end is the process system, which typically is used when all units of output are roughly identical. The
production of chairs, plastic cups, and so on— activities often performed by a production line—usually calls for a
process system of cost accounting. All production-related costs for a given accounting period are calculated a...
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This document was uploaded on 03/30/2014.
- Spring '14