School: University of South Carolina - Columbia
Course: Managerial accounting
Professor: Debbie Brumbaugh
Term: Spring 2019
Name: Managerial Accounting Unit one: General costs and Classifications
Description: These notes cover a general overview of four main cost classifications which are covered in chapter 1 of the text.
Unformatted text preview: main Idea: many cost clusthund for many pupoves A ccounting Dayt Cad pite terms: Cost classifications perspective Diret & ineret - Cost Objecti a product you are analyzing the cost of Financial statements is all about - Product cost - period COSE COSE behavior - Variable cost change by activity level (sane per unit) - fixed cost. They are the least ex liquid costs one rent nomater prodoch - mixed cost Utility Flat fee + Sage (ariabu) cost) Decision maning - differential costi - Sunk cost: They are there when you choose AaB - Opportunity cost what you arge giving up to make the deision Costs ia manufacturing companies - direit materials, direct labor, Overheadex building, Prince, canilya Cost Object Direct costi a cost that is directly related to the cost objector product) Indirect cost, a cost that is definitley Urd, but not easy to trace how much is used for that One unit of product Common costi a cost that cannot be traced to any One Specific product. Example SeadySoup we are making a desk. We need nails, wood a power inlland a Salty Supervisor The'des 5 would be the cost object, wood and nails H Direct, electricity for Power dril-bindiret; Super Alocaman .Manufacturing - manufachining Cost: Cost that incurs wimin tu factory look for Winthe assembly -non manufacturing cost outside the factory 100k for "cooperare -3 types of manufacturing costs - Direct materials, raw materials used per each individual unit Direct labor: labar costs dire vry traced to the indevidual Unit Manufacturing overhead' everything else including indirelt materials & labor Not fraudbe to one unit - two non manufacturing 2013 Selling costs: co t to get ander & deliver > Adininistrasi ve costs: "executive arganizational which can be direct or indirect - manufacturing classifications Prime' costi Ciret material + Direct laba) + Con Verhion cost ( Direct labas Poverhead ) Product VS Period - Product cost involved in (COGS maning,aquireng Product shown > * Costs are not expenced until the unit is on balances wilt Sold. We still track the cost before mot then incare - Period Costs : Admin Shvative cons * They are incurred & reported imediatlyy key accants (types of inventary) Sindysoup Raw material + Work in process + finishengood