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Unformatted text preview: ccounting systems as one of
several activities that take place in an organization and that must be integrated if the organization is to be successful.
The chapter concludes with a “Managerial Checklist” concerning these inter-relationships. Copyrighted Material. Do not reproduce without written permission. Chapter 1. Essentials of Full Cost Accounting
The question “What did it cost?” is an important one for managers to answer in many different organizational
settings. Arriving at an answer is much more difficult than it might first appear. Obviously, the question is rather
easily answered if we are discussing the purchase of inputs (supplies, labor, and so on) for a production or servicedelivery process. Even calculating the full cost of a unit produced—be it a widget or a manicure—is relatively easy
as long as the organization is producing goods or services that are completely homogeneous. Complications arise,
however, when we introduce multiple goods and services into an organization, particularly when we use different
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This document was uploaded on 03/30/2014.
- Spring '14