Job order Costing:
Materials, labor, and MOH cost JE:
When many jobs or products are worked on each period.
Mass Production, repetitive operations, low flexibility, high volume
Conversion cost: direct labor + MOH. Process co
Chapter 13 Capital Budgeting
Capital budgeting - how managers plan significant investments in projects that have long-term
implications like purchase of new equipment or the introduction of new products.
- Most companies have more potential projects than
Internal control policies and procedures managers use to:1.Protect assets 2.Ensure reliable accounting 3. Promote efficient operations 4.Urge adherence to company policies
Principles of Internal Control 1. Establish responsibilities 2. Maintain adequate r
Credit Card Sales
Why use credit cards?1. seller doesnt have to evaluate each customers credit or make decisions about how much credit to allow2. lessen risk of
non payment risk of non payment transferred to credit card company
3. receive cash sooner4. po
Plant Assets(Property, Plant and Equipment or Fixed Assets) tangible assets used in a companys operations that have a useful life of more than one accounting period. Four main issues in
accounting for plant assets:1.Computing the cost(Asset cost includes)
Chapter 3 Job Order Costing
All manufacturing and service firms use cost accounting to develop and report information about
product and service cost.
Two basic types of Cost Accounting systems:
1. Job Order Costing used for customized products and service
Chapter 4- Process Costing
2 common methods for determining product costs
1. Job order costing (Chapter 3)
a. When many different jobs or products are worked on each period.
2. Process costing (Chapter 4)
a. Mass production, repetitive operations, low fle
TWO DEPARTMENTS, JOURNAL ENTRIES WITH SUPPORTING CALCULATIONSWEIGHTED AVERAGE
1. Materials Inventory
Purchased materials on account.
2. Work in Process - Department 1
Chapter 2 Managerial Accounting Concepts and Cost Flows
Managerial accounting systems provide management with financial and other business information that
is useful in analyzing and making business decisions
In managerial accounting, the word cost is use
TRADITIONAL PRODUCT COSTING VERSUS ACTIVITY-BASED COSTING
Total overhead costs:
Direct labor hours
Overhead cost per direct labor hour
Job cost calculations:
Overhead ($41.60 x 270) a
Chapter 12 Differential Analysis
Managers have to make many decisions including:
- What products to sell?
- Do we make or buy the raw materials we need for production?
- Should we accept a special order project at a special price?
Differential analysis fo