Absorption Costing- all manufacturing costs, both fixed and variable, are assaigned to
units of product
Units are said to fully absorb manufacturing costs
Most common approach to product costing and is used throughout the world
Job-Order Costing An Over
Chapter 2 - Managerial Accounting and Cost Concepts
General Cost Classifications
Three categories: direct materials, direct labor, and manufacturing overhead
Direct Materials- materials that become an integral part of the finished prod
Chapter 4 Process Costing
Process Costing- costing method used when essentially homogeneous products are
produced on a continuous basis.
Comparison of Job-Order and Process Costing
Similarities between Job-Order and Process Costing
Both systems have the
Variable Costing and Segment Reporting: Tools for Management
Overview of Variable and Absorption Costing
Three Key Concepts:
(1) Both income statement formats include product cots and periods costs, although they define
theses cost classificatio
Chapter One Managerial Accounting: An Overview
(1) What is managerial accounting?
(2) Why does managerial accounting matter to your career?
(3) What skills do managers need to succeed?
What is Managerial Accounting?
Financial Accounting reports financial
Activity-Based Costing: A Tool to Aid Decision Making
Activity-Based Costing- costing method designed to privde managers with cost information for strategic
and other decisions that potentially affect capacity and therefore fixed as well as vari