Cost Accumulation System
The accumulation and classification of routine product cost data are very important and time-consuming tasks. Cost accumulation in general is the organized collection of cost…
Cost Accumulation System
Relevant and Irrelevant Costs
Relevant costs are expected future costs that differ among alternative courses of action and may be eliminated if some economic activity is changed or deleted….
Controllable and Non Controllable Costs.
Controllable costs are those which may be directly influenced by unit managers in a given time period. Noncontrollable costs are those costs which are not…
Shutdown Costs
In the short run, it is advantageous for the firm to remain open as long as sufficient sales revenue can be generated to cover variable…
Discuss Period Cost & Product Cost
Product Cost These are costs directly and indirectly identifiable with the product. They are direct materials, direct labor, and factory overhead. These costs provide no…
Explain the major difference between managerial and financial accounting.
Financial is largely concerned with financial statements for external use by those who supply funds to the firm and by other persons who may have…
Explain Job-order & process costing.
Job Order Cost Accumulation System A job order cost accumulation system is most suitable where a single product or batch of products is manufactured according…
How the variable and fixed cost per unit will change as the level of activity (or cost driver) will increase? Why?
Total fixed costs do not change as production levels change within the relevant range; therefore, the level of production is not a factor in determining…
Present the flow of costs under periodic and perpetual cost accumulation systems.
PERIODIC COST ACCUMULATION SYSTEMS The first step in comprehending a periodic cost accumulation system is to understand the flow of costs as goods pass through…
What are the five bases commonly used to compute the factory overhead application rate, and when is each one appropriate to use?
These bases are commonly used to compute the factory overhead application rate: (1) units of production, (2) direct materials cost, (3) direct labor cost, (4)…