...first week of Cost Accounting. This week, you learn what managerial and cost accounting are and how these relate and contrast to financial accounting. You then learn about the two basic forms of cost accounting—job order and process cost systems. Most importantly, you will consider ethical considerations within managerial and cost accounting. Your work this week is a critical foundation for the entire course. The first chapter presents a thorough orientation to managerial and cost accounting, including the terms and components you will use throughout the course. Then, you will discuss the two most common and basic forms of cost accounting used in American businesses. This will establish a framework for the course. Fundamentals of Managerial and Cost Accounting OBJECTIVE: Identify key components and terminology utilized within cost accounting. Resources: Ch. 1–3 of Managerial Accounting Content • Ch.1: “Managerial Accounting” o Managerial Accounting Basics o Managerial Cost Concepts o Manufacturing Costs in Financial Statements o Managerial Accounting Today • Ch. 2: “Job Order Costing” o Cost Accounting Systems • Ch. 3: “Process Costing” o Process Costing OBJECTIVE: Compare and contrast process and job cost systems. Resources: Ch. 2 & 3 of Managerial Accounting Content • Ch. 2: “Job Order Costing” o Cost Accounting Systems o Job Order Cost Flow o Reporting Job Cost Data ...
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...COST ACCOUNTING METHODS – CHALLENGE FOR ACCOUNTING PROFESSION Livia RAC, dr Györgyi PETKOVICS University of Novi Sad, Faculty of Economics, Subotica, Serbia liviar@eccf.su.ac.yu, pegy@eccf.su.ac.yu Abstract / Abstrakt In its existence, cost accounting, as main part of management accounting, is continuously changing. Economic realities have made it necessary for most companies to have organizational changes as well as cost reduction. Markets have become global with competitors offering high-quality, low-cost goods and services. Speed, accuracy as well as understanding and meeting consumers’ needs come in front. The proliferation of products and services adds to the complexity of getting work done throughout an organization. This complexity is one of the chief causes of rising costs everywhere. Although in these new circumstances some companies underrate the cost accounting systems’ importance, we cannot put them aside. Cost accounting has to provide relevant cost information for corporate executives to make correct decisions. Traditional cost techniques cannot model the really needed expenditures for producing a product well. Because of this, some techniques were developed, which measure the relation between costs and cost originators in more complex correlations and not just with a simple quantity-cost relations. Beside the traditional techniques (actual costing, standard costing, normal costing, etc.) new methods appear. Among the others, these are: Activity-Based Costing, Target...
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...ACCT 230 Managerial Accounting Office: JH3208 Spring 2011 Phone: (818) 677-2424 James Chiu, Ph.D., CPA, CMA Email: James.chiu@csun.edu Hours: 14:00- 15:20 T.TR. 18:00-19:00 W. and by Appointment Prerequisite: ACCT 220 Required Text: Brewer/Garrison/Noreen, Introduction to Managerial Accounting, 5th Edition (McGraw-Hill Publishing Co., 2010) Course Objective: Management accounting information system is designed to satisfy three broad objectives (1) To provide information for costing out products and services, (2) To provide information for planning, controlling, evaluation, and continuous improvement, and (3) To provide information for decision making. The purpose of the course is to learn the fundamental concepts and procedures necessary for the understanding and use of management accounting information for managerial decisions. The emphasis is on the use of accounting information. Effective management requires a sound understanding of how to use accounting information for decision making. The following topics will be discussed: Major differences between Financial and Managerial Accounting Ethical standard for management accountants Cost terminology and concepts Cost objects, cost flows in manufacturing or services operations. Job order costing and process costing Activity based costing and management ...
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...wiL1084x_fm_i-xxiv_1.indd Page i 1/10/11 7:53:00 PM user-f499 /Users/user-f499/Desktop/Temp Work/Don't Delete Job/MHBR231:Wild:203 Managerial Accounting John J. Wild University of Wisconsin at Madison Ken W. Shaw University of Missouri at Columbia 3 rd edition wiL1084x_fm_i-xxiv_1.indd Page ii 1/10/11 9:14:31 PM user-f499 /Users/user-f499/Desktop/Temp Work/Don't Delete Job/MHBR231:Wild:203 To my students and family, especially Kimberly, Jonathan, Stephanie, and Trevor. To my wife Linda and children, Erin, Emily, and Jacob. MANAGERIAL ACCOUNTING Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright 2012, 2010, 2007 by The McGraw-Hill Companies, Inc. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOW/DOW 1 0 9 8 7 6 5 4 3 2 1 ISBN 978-0-07-811084-9 MHID 0-07-811084-X Vice president and editor-in-chief: Brent Gordon Editorial director: Stewart Mattson Publisher: Tim...
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...MBA Accounting for Managers Fall 2015 Course Syllabus Faculty Jasmine Hsu Faculty Contact Details jhsu@jgu.edu.in Class Time and Venue as per the programme time table Course Description The goal of this course is to help you understand the role and application of accounting information in business and learn how managers can use external and internal accounting information for decision-making. This course aims to provide an overview of key principles and concepts in financial accounting and managerial accounting. Specific topics include: components of financial statements; financial statements analysis; product costing; costvolume-profit analysis; and budgeting. Course Objectives After completion of the course, you should be able to: Understand the roles of financial accounting (external) and managerial accounting (internal) Analyze financial reports, specifically the balance sheet, statement of profit and loss and statement of cash flow. Identify and apply key financial ratios to financial statement analysis. Identify and apply basic elements of cost concepts, product costing and cost-volumeprofit (CVP) analysis to management decision-making process. Understand key considerations during the budgeting process and budgetary control. Course Materials Narayanswami (2014): “Financial Accounting: A Managerial Perspective”, Prentice-Hall Pvt Ltd., 5th edition, New Delhi (FA) Jiambalvo (2013):” Managerial Accounting”, Wiley India, 5th...
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...Differences between Financial and Managerial Accounting? Answer: Financial Accounting - deals with reporting to people outside the organization - the users of the financial accounting reports include shareholders (owners) of a corporation, creditors (those who lend money to a business), financial analysts, labor unions, and government regulators. - Uses historical or current data Managerial Accounting - focuses on the activities inside the organization - many companies call it finance or corporate finance - no required rules and regulations such as Generally Accepted Accounting Principles or Financial Reporting Standards - can and does use projections about the future - managerial accounting information must meet a cost-benefit test or the benefit from providing information must exceed the cost of obtaining the information - new initiatives such as activity-based costing and the balanced scorecard must pass the aforementioned tests Problem 1.2 for Self-Study: Match the concept with the definition. Concept Definition Cost a. Costs directly related to a cost object Opportunity cost b. A sacrifice of resources Expense c. Costs not directly related to a cost object Cost Object d. Any item for which a manager wants to measure a cost Direct Costs e. A cost charged against revenue in an accounting period Indirect Costs f. The return that could be realized from the best forgone alternative use of a resource Answer: Concept Definition Cost b. A sacrifice...
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...ACCT 2102 - MANAGERIAL REVIEW CHAPTERS 14, 15 THE TEST CONSISTS OF 25 - 30 MULTIPLE CHOICE QUESTIONS THAT WILL ASK YOU TO APPLY THE CONCEPTS YOU HAVE LEARNED IN THE CHAPTERS. MEMORIZATION OF CONCEPTS WITHOUT KNOWING HOW TO APPLY THEM WILL NOT WORK. HAVE A WORKING KNOWLEDGE OF THE VOCABULARY AT THE END OF THE CHAPTER. REVIEW ALL EXERCISES AND PROBLEMS ASSIGNED. CHAPTER 14 Who are the users of managerial information? What are the distinguishing features of managerial accounting? Explain the management functions. Know how to calculate Cost of Good Sold and Cost of Goods Manufactured. What is product cost, manufacturing costs and period costs? What are the three inventory accounts and how are they presented on the balance sheet? What is gross profit? What is the value chain? What is ERP? What is just-in-time inventory? What is TQM? What is the balanced scorecard? CHAPTER 15 Explain the characteristics and purposes of cost accounting What is Job order costing? What is Process costing? What are the four steps in the Job order flow of costs? Know how to prepare journal entries to record the purchase of raw materials, factory labor costs incurred, manufacturing overhead incurred, the assignment of direct materials, direct labor and manufacturing overhead to jobs during the month, assignment to finished goods and cost of goods sold. How does the job cost sheet help in accumulating manufacturing costs? Understand and know how to calculate the predetermined...
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...Cost Accounting B.Com (Annual) Part-II Paper-IV Maximum Marks: 100 (Pass Marks: 40) Duration of Examination: 3 hrs Course Contents: Topic Source Sections Concept and Scope of Accounting: Definition, cost elements, nature and objective, charts of accounts and coding in cost accounting. Ch 2, Book 1 A Cost Classification and Flow: Product and period cost, direct and indirect cost, Differential cost and revenue, Opportunity and Sunk cost, fixed and variable cost, mixed cost, statement of cost of goods manufactured and sold statement. Ch 1, Book 2 Ch 2, Book 1 A Material Planning, Controlling and Costing: • Procedure for material procurement and use • Material costing methods • Inventory valuation at cost or market whichever is lower • Procedure for spoiled, scrap and defective work • EOQ , Inventory level and reserve stocks • Valuation of inventory • Planning materials requirement • Materials control Ch 7,8, Book 1 A Labour Controlling and accounting for costs: • Productivity and labour costs • Incentive wage plans • Learning curve theory • Organisation for labour cost accounting and control • Overtime plans, Bonus payments, vocation pay guaranteed annual wage plans , apprenticeship and training programs • Human resource accounting • Pension plans • Labor related deductions Ch 9,10, Book 1 A Factory Overhead Planned, Actual and Applied Variance Analysis: • Procedure of factory overheads including apportionment • Applied and actual FOH,...
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...1 K&J BAKERY INC. A SIMPLIFIED MANAGEMENT ACCOUNTING PROJECT Raymond J Elson, DBA, CPA Associate Professor of Accounting Langdale College of Business Valdosta State University Valdosta, GA 31698 229-219-1214 (office) relson@valdosta.edu Stephen M. Rice, MAcc Langdale College of Business Valdosta State University Valdosta, GA 31698 smrice@valdosta.edu Tracey McGregor Graduate Student Langdale College of Business Valdosta State University Valdosta, GA 31698 smrice@valdosta.edu 2 K&J BAKERY INC. A SIMPLIFIED MANAGEMENT ACCOUNTING PROJECT INTRODUCTION The objective of this project is to provide students with a practical application of some of the key concepts discuss in the managerial accounting course. It can be used as a half-semester long or concept driven project i.e., used along with the concepts/topics as they are introduced throughout the course. LEARNING OUTCOMES Students should be able to: 1. Identify the various costs that are part of a business environment and the three elements of product cost 2. Differentiate between the different costing systems 3. Illustrate business transactions using T-account analysis 4. Prepare the statement of cost of goods manufactured and an income statement 5. Calculate the break-even point in units and dollars, and target sales in units and dollars K&J BAKERY INC. Business Background As she sat in her Accounting I class bored while listening to the lecture on journal entries, Keisha Jones could not...
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...ADM 335 ACCOUNTING II: MANAGERIAL ACCOUNTING COURSE DESCRIPTION Managerial accounting involves the use of economic and financial information to plan and control many of the activities of the business entity and to support the management decision-making process. The main objective of this course is to explore the relevant issues of cost accounting. Hence, this course examines the acquisition, analysis, and reporting of accounting information from the perspective of effective management decision making, with special emphasis on the planning and control responsibilities of practicing managers. It also familiarizes the student with an electronic spreadsheet package found in today’s business world. TOPICS Topics to be covered in this course: • • • • • • • • • • • • • Managerial Accounting—Definition and Perspective Cost Terms, Concepts, and Classifications Job-Order Costing Process Costing Cost Behavior Analysis Cost-Volume-Profit Relationships Profit Planning and Budgeting Standard Costs and Variance Reporting Flexible Budgets Segment Reporting and Profitability Relevant Costs for Decision Making Statement of Cash Flows Financial Statement Analysis STUDENT—1 ACCOUNTING II: MANAGERIAL ACCOUNTING This syllabus has been developed by the faculty of the College of Business and Management at Cardinal Stritch University. © 2014 Cardinal Stritch University Syllabus Control Number: 061614 STUDENT—2 ACCOUNTING II: MANAGERIAL ACCOUNTING INTRODUCTION SYLLABUS FORMAT This...
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...COURSE SYLLABUS DEPARTMENT: Business COURSE TITLE: Cost Accounting COURSE NUMBER: EBA 213 PREREQUISITES: EBA 101, EBA 102 CREDIT HOURS: 3 DEVELOPER: Professor Simon Saltz LAST UPDATE: December 1,2003 COURSE DESCRIPTION: Cost accounting focuses on cost determination for manufacturers, products and services. This includes the establishment and maintenance of job order and process cost systems, and the classification of costs as product or period, direct or indirect. Also included are managerial techniques and systems such as budgeting and variance analysis, which enable a business to manage its affairs more efficiently . COURSE/ DEPARTMENTAL OBJECTIVES: Students should be able to understand the thinking and systems of the business world. Understanding how the cost of a product is determined, as it moves through the manufacturing process, enables students to gain insight into how pricing decisions are made. They will be in a better position to determine whether a business is price gouging and can be an effective force in countering such behavior. Understanding budgeting systems enables one to properly manage a business and diagnose the causes of poor business performance. This could help preserve jobs for employees and investment value for shareholders. COURSE/ INSTITUTIONAL OBJECTIVES: ...
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...GULU UNIVERSITY FACULTY OF BUSINESS AND DEVELOPMENT STUDIES DEPARTMENT OF FINANCE AND ACCOUNTING BACHELOR OF BUSINESS ADMINISTRATION (BBA) COST AND MANAGEMENT ACCOUNTING (BBA 314) COURSE WORK SEMESTER ONE: 2012/2013 Henry Egyeyu 07/U/456/BAK/PS Tel: +256774366667/+256714366667 Question: Accounting theory and practices have identified financial management, financial accounting and management accounting as distinct entities and granted them independent status. Unfortunately, cost accounting which also appears to many users of accounting data and information as fit to be an independent stream of knowledge, has been denied this opportunity. In many circles, this is considered a very unfair treatment and must be corrected if the accounting discipline has to meaningfully grow. As an upcoming professional in the field, develop a logical position on the cost accounting issue relating it to a practical scenario (case study) in Uganda. Your argument should be presented inform of a report addressed to: Director, cost concern international (Uganda chapter) P.o. Box 17 Kampala Important Response Information: i. The report must be 6-7 (six to seven) pages, well-edited. ii. Strictly use Times New Roman fontage, Font size 12, and 1.5 spacing iii. You must sign the report and provide your phone contact. iv. The report must be submitted within exactly 30 (thirty) days from the date of receipt. Henry & Egyeyu Consultancy P.o box 26031, Gulu 1st October, 2012 ...
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...Importance of Cost Accounting? ACC310: Cost Accounting I (BBJ1220A) Instructor: Ashley Harper Melissa Little June 18, 2012 This paper seeks to explain the practices and principles of cost accounting and their overall effectiveness in assisting a company in minimizing costs where possible and optimizing the return on the costs that are necessary. Every year, no matter the overall state of the economy, businesses both old and new experience huge successes and huge failures. Every business has the potential and the intention to capitalize on profits and to become perpetually successful. What is the difference between the businesses that are able to do this and those that fail? What do successful businesses do to capitalize on and expand their profits? Many things contribute to successful business enterprises, but the bedrock principle of every successful business venture is honest accounting practices. Accounting is the information system which assesses an organization’s undertakings, computes the figures into reports, and imparts the outcome to an influencer. Accounting is a general, all-encompassing term that can mean many things to many people, so there are a few sub-categories that have been created to delineate specific areas or specialties within the accounting world itself. These are the areas of management accounting and cost accounting. Management accounting refers to the practice of gathering and analyzing accounting information in order...
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...Cost Accounting : An Introduction MODULE - 6B Elementary Cost Accounting 27 COST ACCOUNTING : AN INTRODUCTION After passing your senior secondary examination, if you set up a small manufacturing unit, say manufacturing of packing boxes, a problem will arise what price of each box you should quote to the buyer. Many factors are considered while fixing the price of a product/item such as competitors’ price etc. One of the basic factors is the cost of its production. Cost is essential not only to fix price but also to ascertain the margin of profit. Knowledge of the cost determination is also necessary to keep a check on the cost of product/control on wastages, etc. The accounting used to study the various aspects of cost is known as cost accounting. In this lesson, you will learn about meaning, importance, limitations etc. of cost accounting. Notes OBJECTIVES After studying this lesson, you will be able to: state the meaning and scope of cost accounting; explain the objectives of cost accounting; differentiate between cost accounting and financial accounting; state importance of cost accounting; explain limitations of cost accounting. 27.1 MEANING AND SCOPE OF COST ACCOUNTING Cost accounting is the process of determining and accumulating the cost of product or activity. It is a process of accounting for the incurrence and the control of cost. It also covers classification, analysis, and interpretation of cost. In other words, it is a system of accounting, which provides...
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...- 6B Elementary Cost Accounting Notes 95 Cost Accounting : An Introduction ACCOUNTANCY After passing your senior secondary examination, if you set up a small manufacturing unit, say manufacturing of packing boxes, a problem will arise what price of each box you should quote to the buyer. Many factors are considered while fixing the price of a product/item such as competitors’ price etc. One of the basic factors is the cost of its production. Cost is essential not only to fix price but also to ascertain the margin of profit. Knowledge of the cost determination is also necessary to keep a check on the cost of product/control on wastages, etc. The accounting used to study the various aspects of cost is known as cost accounting. In this lesson, you will learn about meaning, importance, limitations etc. of cost accounting. OBJECTIVES After studying this lesson, you will be able to: state the meaning and scope of cost accounting; explain the objectives of cost accounting; differentiate between cost accounting and financial accounting; state importance of cost accounting; explain limitations of cost accounting. 27.1 MEANING AND SCOPE OF COST ACCOUNTING Cost accounting is the process of determining and accumulating the cost of product or activity. It is a process of accounting for the incurrence and the control of cost. It also covers classification, analysis, and interpretation of cost. In other words, it is a system of accounting, which provides the ...
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