Fox School of Business and Management
Accounting 2102 Online
Syllabus Spring 2016
Wednesday 8-8:55 PM, Online
Associate Professor Christian E. Wurst Jr.
How to reach me:
Alter Hall, Rm. 442 (during of
Week 11 Chapter 10
DEVELOPING STANDARD COST
The ideal standard is imposible to meet but the easier to do.
Practical standards are more attainable.
Standard price is the price you expect to pay.
Standard rate * (actual hours-standard hours)
Variable costing is useful for preparing a contribution format income statement. It is useful for
CALCULATING THE CONTRIBUTION MARGIN
BREAK EVEN ANALYSIS TARGET PROFIT
Breakeven point by definition is that point where th
MANAGERIAL ACCOUNTING NOTES WEEK 1
Financial Accounting vs. Managerial Accounting
Managerial accounting has to comply with what the boss wants.
In financial accounting, we are most concerned with the information beingobjective. In managerial accou
JOB COSTING VS. PROCESS COSTING
Process costing, think mass production. Think everything's exactly the same, same inputs, sam
e processes, same outputs. Think Tastykake. Think General Mills. You
put the same stuff into the same cake. You do the sa
Chapter 9 Week 10
Transfer price: a perfect intermediate market: the product is not differentiated by quality or service.
The optimal transfer price is the market price
1. Transfer price higher than market: buying divis
SERVICE, MERCHANDISING AND MANUFACTURING COMPANIES
Similar in many ways, different in many.
They have no inventory account. They may have supplies, butthey have no inventory.
Typical examples- an advertising agency. They'd
INTRODUCTION TO COST BEHAVIORS
Variable cost: going to the mall and buying pizza for $2, the more pizzas the more it cost
Fixed cost: you go to Cicis and is all you can eat pizza $10. That is fixed
Mixed Cost: going some place where there is a cov
Just a specific period of time.
This is where budgeting and budgeting decisions are made at the lower levels of management and the budget is passed
up and passed up. The benefit is that if you decided on making a budget and you have set
Developing Departmental Overhead
Suppose you have two or three orfour different departments in your company. And they all do va
stly differentthings. It'd
be very difficult to find one overhead rate that applies equally toall of them.
Perhaps one d
CHAPTER 2 managerial accounting and cost concepts
Manufacturing cost: Most manufacturing companies separate manufacturing costs into three broad categories:
direct materials, direct labor, and manufacturing overhead.
Direct Materials: The ma
Would we make enough with that order to cover the costs?
Will these affeect our customers?
APPLYING THE THEORY OF CONSTRAINTS
MAKE OR BUY
SELL OR PROCESS FURTHER