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Unformatted text preview: ds and amounts of resources to manufacture the goods or provide the services.
The purpose of this chapter is to address some of the key decisions that are made in designing a full cost accounting system, and to discuss how those decisions can influence an answer to the “What did it cost?” question.
In this regard, you should be aware of three important considerations. First, the chapter is not meant to be an all-inclusive description of cost accounting; rather, its goal is to provide an introduction to the topic. Second, we will be
looking at service organizations as examples to illustrate the principles. This is because cost accounting can be quite complicated in other kinds of organizations, especially manufacturing companies. The key concepts and principles are best seen in relatively uncomplicated settings, such as those of service organizations. We will look at cost
accounting for manufacturing companies in Chapter 4.
The third consideration is that there is considerable disagreement among managers and accountants over the
best way to calculate full...
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This document was uploaded on 03/30/2014.
- Spring '14