TAILIEUCHUNG - Lecture Survey of accounting (4/e) - Chapter 12: Cost accumulation, tracing, and allocation

After you have mastered the material in this chapter, you will be able to: Identify cost objects and distinguish between direct costs versus indirect costs, allocate indirect costs to cost objects, identify the most appropriate cost driver, recognize the effects of cost allocation on employee motivation. | Chapter Twelve Cost Accumulation, Tracing, and Allocation © 2015 McGraw-Hill Education. 1 Chapter Opening Managers must have reliable cost estimates to: Price products. Evaluate performance. Control operations. Prepare financial statements. What does it cost? 12-2 2 Determine the Cost of Cost Objects Cost accumulation begins with identifying: Cost objects Cost drivers A cost object is any activity, product, or service to which accountants wish to trace costs. 12-3 3 Use of Cost Drivers to Accumulate Costs Machine hours Miles driven Labor hours Units produced A cost driver is any factor that causes or “drives” an activity’s costs 12-4 4 Estimated Versus Actual Cost Potential Inaccuracies Timely Relevant Estimated Costs Managers use estimated costs to make decisions about the future. 12-5 5 The first step in the development of the new bonus strategy is to determine the costs of each department. Costs that can be traced to departments in a cost-effective manner are called direct costs.

• Kế toán - Kiểm toán
• Survey of accounting
• Lecture Survey of accounting
• Cost accumulation
• Price products
• Evaluate performance
• Control operations
• Accounting for cash
• Accounting cycle
• Financial resources
• Accounting provides information
• Internal controls
• Accounting profession
• Accounting for receivables
• Inventory cost flow
• Accounting for liabilities
• Bonds issued
• Managerial accounting
• Product costing
• Financial statements
• Ledger accounts
• Merchandising businesses
• Transportation costs
• Long term operational assets
• Depreciation method