TAILIEUCHUNG - Ebook Fundamentals of cost accounting (3th edition): Part 2

(BQ) Part 2 book "Fundamentals of cost accounting" has contents: Fundamentals of cost management, service department and joint cost allocation, fundamentals of management control systems, planning and budgeting, fundamentals of variance analysis, nonfi nancial and multiple measures of performance,.and other contents. | To download more slides, ebook, solutions and test bank, visit 10 Chapter Ten Fundamentals of Cost Management LEARNING OBJECTIVES After reading this chapter, you should be able to: Explain the concept of activity-based cost management. Use the hierarchy of costs to manage costs. Describe how the actions of customers and suppliers affect a firm’s costs. Use activity-based costing methods to assess customer and supplier costs. Distinguish between resources used and resources supplied. Design cost management systems to assign capacity costs. Describe how activities that influence quality affect costs and profitability. Compare the costs of quality control to the costs of failing to control quality. 354 11/20/09 10:03:03 AM To download more slides, ebook, solutions and test bank, visit When you run a retail business, you are really selling service. The problem is that you are being paid for products. This means that two people can pay the same amount although they receive different levels of service. What I would like to know is what it costs me to serve different types of customers. I’d also like to understand why the costs of serving different customers differ. Then, I can decide how to improve my margins. I have read that some companies are cutting back on their service to customers who are not profitable. I don’t want to do that, but I do want to make sure that I don’t drive away profitable customers by making them pay for others. Erik (Red) Anders is the owner of Red’s Lumber Company. Red’s serves a diverse customer base ranging from weekend do-it-yourselfers to professional contractors. Customers send an order to Red’s, which then delivers lumber and other products to the work site. Red’s is facing increasing competition as large national chains enter the market. The competition has resulted in lower margins and a

• Kế toán - Kiểm toán
• Fundamentals of cost management
• Service department
• Cost allocation
• Management control systems
• Variance analysis
• Multiple measures of performance
• Cost management
• Cost accounting
• Fundamentals of cost accounting
• Cost analysis
• Cost management systems
• Cost volume profit analysis
• Decision making
• Service costing
• Decentralized organization
• Cost versus expenses
• Cost estimation
• Joint cost allocation
• Value chain
• Job costing