会计学原理英文课件 (18)

Out-of-pocket costs require future outlays of cash and should be considered in decisions.
Example: You plan on buying a new car for $25,000 next month. The cost of the new car is an out-of-pocket cost because you can choose to spend or not to spend the $25,000 next month.

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C2
Types of Cost Classifications Classification by Controllability
The degree of control depends on the level of management in the organization.
The Institute of Management Accountants has issued a code of ethics to help accountants involved in solving ethical dilemmas.
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C2
Types of Cost Classifications Classification by Behavior
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C2
Types of Cost Classifications Classification by Relevance
An opportunity cost is the potential benefit lost by choosing a specific action from two or more alternatives
Manufacturing costs are often combined as follows:
Direct Material Direct Labor Manufacturing Overhead
Prime Cost
Conversion Cost
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C4
Reporting Manufacturing Activities
Managerial accounting provides financial and nonfinancial information for managers of an organization and other decision makers.
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C1
Purpose of Managerial Accounting
Cost
Cost behavior refers to how a cost will react to changes in the level of business activity.
Activity
• Total fixed costs do not change when activity changes. • Total variable costs change in proportion to activity changes.
Indirect costs

Direct costs

Costs traceable to a single cost object. Examples: material and labor cost for a product.

Costs that cannot be traced to a single cost object. Example: A maintenance expenditure benefiting two or more departments.
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C3
Types of Cost Classifications Classification by Function
Direct Labor
Direct Material
Manufacturing Overhead
Product
Period costs are expenses not attached to the product. Selling costs are incurred to obtain orders and to deliver finished goods to customers. Administrative costs are non-manufacturing costs of staff support and administrative functions.
Example: Steel used in the frame of a mountain bike.
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C3
Direct Labor
Direct labor costs are the wages and salaries for direct labor that are separately and readily traced through the manufacturing process to finished goods.
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Managerial Accounting Concepts and Principles
Chapter 18
PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA
Example: If you were not attending college, you could be earning $20,000 per year. Your opportunity cost of attending college for one year is $20,000.
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C3
Period and Product Costs in Financial Statements
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C3
Identifications of Cost Classifications
* Although an assembly worker’s wages are classified as variable costs, their actual behavior depends on how workers are paid and whether their wages are based on a union contract (such as piece rate or monthly wages).
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C3
Cost Concepts for Service Companies
The cost concepts described are generally applicable to service organizations.
For example, the cost of beverages for passengers of Southwest Airlines is a variable cost based on number of passengers.
Examples: Indirect labor – maintenance Indirect material – cleaning supplies Factory utility costs Supervisory costs
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C3
Prime and Conversion Costs
Cost Activity Cost
• Mixed costs are combinations of fixed and variable costs.
Activity
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C2
Types of Cost Classifications Classification by Traceability
Example: Wages paid to a mountain bike assembly worker.
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C3
Factory Overhead
Factory overhead consists of all manufacturing costs that are not direct materials or direct labor and the costs cannot be separately or readily traced to finished go of Managerial Accounting
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C1
Fraud and Ethics in Managerial Accounting
Fraud… 1. Is done to provide direct or indirect benefit to the employee. 2. Violates the employees’ obligations to the employer. 3. Costs the employer money or loss of other assets. 4. Is hidden from the employer. Ethics… 1. Distinguish right from wrong. 2. Are accepted standards of good and bad behavior.
Merchandisers . . .