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Notes 1 for Introduction of Managerial Accounting

In: Business and Management

Submitted By mitchelle
Words 1522
Pages 7
The value chain is the sequence of business functions in which customer usefulness is added to products or services.
In supporting managers, management accountants have three guidelines. These guidelines are: Cost-benefit analysis, behavioral considerations and technical considerations, and different costs for different purposes.
Galway Co. management desires cost information regarding its Celtic brand. The Celtic brand is a(n) cost object. Cost objects are anything for which a measurement of cost is desired
The cost of a product can be measured as any of the following except as one b. identified as period cost
Which of the following is not a factor in cost-volume-profit analysis? c. Total variable costs
Chpt.4 PPT----Basic Costing Terminology: Cost objects are anything for which a measurement of cost is desired
Direct costs -- can be traced to that cost object in an economically feasible way; indirect costs cannot be traced …
Cost-allocation base—a systematic way to link an indirect cost or group of indirect costs to cost objects
Costing Systems:In a JOB COSTING SYSTEM, the cost object is a unit or multiple units of a distinct product or service which we call a job. Each job generally uses different amounts of resources.
In a PROCESS COSTING SYSTEM, the cost object is masses of identical or similar units of a product or service. In this type of system, we divide the total cost of producing an identical or similar product or service by the total number of units produced to obtain a per-unit cost.
Actual costing—allocates: Indirect costs based on the actual indirect-cost rates times the actual activity consumption.
Normal Costing—allocates: Indirect costs based on the budgeted indirect-cost rates times the actual activity consumption.
Both methods allocate direct costs to a cost object by using actual direct-cost rates times actual consumption.…...

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