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This 8 page Class Notes was uploaded by Gerda Pacocha on Saturday October 3, 2015. The Class Notes belongs to ACC208 at California State Polytechnic University taught by Staff in Fall. Since its upload, it has received 8 views. For similar materials see /class/218401/acc208-california-state-polytechnic-university in Accounting at California State Polytechnic University.
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Date Created: 10/03/15
Group 5 Problems 3 2 4 S 2 5 amp S 2 6 James Phan Alejandra Escobedo Nicholas Maberry Lisa Nguyen Esteban Martinez Anjan Purohit Outcome from this presentation You are able to Classify costs by value chain functions llaSSIfy Costs as either dll eCt or Indirect ICIassify inventoriable product costs and period costs Value Chain E The Value Chain activities that add value to the company s product and services which cost money 6 business function in the value chain Value Chain 7 q Research and Design Production or Marketing Distribution Customer development purchases service S 24 Some examples from the problem Classify the cost with one of the 6 func ons 1Cost of a customer support center Website I SolutionCustome rService39 Go39st of a primetime TV ad featuring the new HP logo Solution Marketing 3SailaigociiJ are redesngning the printer 3 ionoff swntch Direct Cost vs Indirect cost I Direct costs activities or services that benefit specific projects example Project staff Consultants Project supplies Indirect costs are those for activities or services that benefit more than one project Their precise benefits to a specific project are often difficult or impossible to trace I For example Utilities Rent Audit and legal Administrative staff Equipment rental S 25 Some examples from the problem Classify costs as direct or indirect with respect to a local Blockbuster store StoreUt ilfitie s Solution indireC t fThe wages of store employees Solution Indirect 33The cost of DVDS Solution Direct Inventoriable product cost vs period cost Inventoriable product cost includes only the cost incurred during the production or purchases stages of the value chain Period Cost all costs in the value chain except for the production or purchases stage S 26 Examples Elassify Inventoriable product costs and period costs subject GeorgiaPacific manufacture of paper lumber etc Dgepreeiat itonon the gypsum beard plant i SOIut39ionz39 Inventoriable product cost 2The purchaee of lumber to be out into boards I SOIUtIO Inventoriable product cost 3 Cpstgg gtr 3618 8 0eorglaPaolflc 3 paper mills l