Week 1 Accounting notes
Week 1 Accounting notes ACC 204
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This 2 page Class Notes was uploaded by Marisa Foresta on Saturday September 12, 2015. The Class Notes belongs to ACC 204 at Pace University taught by Kaustav Sen in Fall 2015. Since its upload, it has received 27 views. For similar materials see Managerial Accounting in Accounting at Pace University.
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Date Created: 09/12/15
Week 1 Managerial Accounting planning is budgeting Product cost vs Period cost Plant or factory costs Company or Headquarter costs salaries Product costs are the costs used to create a product These costs include direct labor direct materials consumable production supplies and factory overhead Period costs are any cost that is not a product cost Period costs are usually associated with the selling function of the business or its general administration Manufacturing Overheadindirect costs incurred in the factory other than the costs of direct materials and direct labor Direct labor involves in production rather than administration maintenance and other support services Direct materials cost can be easily identified with the unit of production Fixed vs variable cost constant change Mixed costs consist of a fixed component and a variable component Direct costs can be traced directly to a cost object Indirect costs are not easily traced and usually manufacturer based Indirect costs include administration personnel and security costs Cost accumulation is all costs Cost allocation is where the money was spent Cost of Goods Sold COGS is how much it cost to make a product Revenues COGS Gross Margin Gross Margin Operating expenses Operating Income Operating Income Interest amp Tax Net Income Total Manufacturing costgt material labor manufacturing overheadgt increase work in progress moves out of Work in progress into finished goods moves out of finished goods to customers COGS Matching principle expenses match revenues for every debit there is a credit revenue is recorded when given goods or services capitalized cost shows up as an asset Total cost Fixed cost Variable cost unit variable cost quantity Total revenue Price unit selling price quantity Breakeven is Total revenueTotal cost Quantity Breakeven Fixed Cost Price Variable BreakEven Analysis TC iSTOta39 Cost TR 0 E2 TC VC is variable cost CostsIRovonuo FC is fixed cost Q is quantity TR is total revenue Xaxis is Price Loss FC Q1 OutputSales Contribution margin Sales Variable costs unit contribution margin Price variable costs Target Income Tl TR TC PriceQ FC VCQ Quantity Target income Tl FC Price VC Profit Sales Variable expenses Fixed expenses Sales Breakeven Price Q breakeven P FC P VC FC P VC P P VC P is Contribution margin Ration
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