17-1 Industries using process costing in their manufacturing areas include chemical
processing, oil refining, pharmaceuticals, plastics, brick and tile manufacturing, semiconductor
chips, beverages, and breakfast cereals.
AN INTRODUCTION TO COST TERMS AND PURPOSES
A cost object is anything for which a separate measurement of costs is desired. Examples
include a product, a service, a project, a customer, a brand category, an activity, and a
Cost poola grouping of individual indirect cost items.
Cost tracingthe assigning of direct costs to the chosen cost object.
Cost allocationthe assigning of indirect costs to the chosen cost object.
Cost-allocation basea factor th
ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT
Broad averaging (or peanut-butter costing) describes a costing approach that uses broad
averages for assigning (or spreading, as in spreading peanut butter) the cost of resources
FLEXIBLE BUDGETS, OVERHEAD COST VARIANCES, AND
Effective planning of variable overhead costs involves:
1. Planning to undertake only those variable overhead activities that add value for
customers using the product or serv
disfigure stone buildings and historical monuments, and impair the lungs of
people (more on this in the next chapter). Confronted with the prospect of
growing acid rain related problems, the United States government started Phase I
of its ambitious SO2 em
Earths surface after being deposited in a dry form. Other pollutants pose a
problem when they alter the chemical composition of the atmosphere in ways
that modify the flow of energy to and from the earth. Scientists have linked
the market function. 5 Permits can be accumulated by firms for the purpose of
deterring entrants or by environmental groups for the purpose of attaining the
groups environmental objectives. Preliminary empirical evidence indicates that
the United States S