TAILIEUCHUNG - Lecture Managerial accounting (6th edition): Chapter 6 - Jiambalvo

Chapter 6 - Cost allocation and activity-based costing. This chapter presents the following content: Purposes of cost allocation, cost-plus contracts, fixed indirect costs – other approaches, select an allocation base, allocating service department costs,. | Prepared by Debby Bloom-Hill CMA, CFM 1 CHAPTER 6 Cost Allocation & Activity-Based Costing 2 Purposes of Cost Allocation To provide information for decision making To reduce frivolous use of common resources To encourage evaluation of services To provide “full cost” information Slide 6-3 Learning objective 1: Explain why indirect costs are allocated, describe the cost allocation process, and discuss allocation of service department costs. 3 Purposes of Cost Allocation Slide 6-4 Learning objective 1: Explain why indirect costs are allocated, describe the cost allocation process, and discuss allocation of service department costs. 4 Purposes of Cost Allocation To provide information for decision making When managers use a company resource they are receiving a charge for use Allocated cost should measure the opportunity cost of using a company resource Provides a useful benchmark The closer to the opportunity cost of use, the better the allocation Slide 6-5 Learning objective 1: Explain

• Kế toán - Kiểm toán
• Managerial accounting
• Lecture Managerial accounting
• Cost allocation
• Activity based costing
• Process of cost allocation
• Fixed indirect costs
• Managerial accounting for managers
• Profitability analysis
• Decision making
• Operations management majors
• Nonmanufacturing costs
• Classifications of costs
• Kế toán quản trị
• Managerial accounting information
• General cost classifi cations
• Product costs
• Process costing
• Standard costing systems
• Accounting information
• Managerial decision
• Process management
• Financial statement
• Cost concepts
• Managerial accounting basics
• Managerial cost
• Period costs
• Lecture Financial and managerial accounting
• Financial statements
• Managerial decisions
• Financial accounting
• Dynamic business environment
• Reporting manufacturing activities
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Relevant costing
• Accounting activities
• Business activities
• Income statement
• Accounting cycle
• Accounting for merchandising operations
• Merchandising operations
• Capital budgeting decisions
• Time value of money
• Income taxes
• After tax cost