... Methods
• Standards
• Budgets
Control
What should and did
take place?
Means of Control:
• Responsibility
accounting
• Cost accounting
• Standards
• Budgets
Evaluation of Findings:
• Performance and
... made?
Chapter 19 Measuring Short-Run Organizational Performance
891
56. (ROI, RI) Raddington Industries produces tool and die machinery for manu-
facturers. The company expande...
... financial
accounting information is useful to managers in performing their daily functions.
Cost accounting creates an overlap between financial accounting and man-
agement accounting. Cost accounting ... with
its plans and goals.
This chapter introduces cost accounting and describes the global environment of
business, international market structures, trade agreements...
... are used to measure and evaluate the decision maker’s performance.
Techniques such as relevant costing, quality cost management, job order and
process costing, and cost- volume-profit analysis, ... as hav-
ing six primary goals: (1) develop reasonably accurate product costs, especially
through the use of cost drivers (activities that have direct cause -and- effect rela-
tionships w...
... unexpired costs (assets) and eq-
uities (liabilities and owners’ capital); the income statement is a statement of rev-
enues and expired costs (expenses and losses). The concept of matching revenues
and ... distribution costs are expensed as incurred, managers should
remember that these costs relate directly to products and services and should not
adopt an “out-of-sight, out-of-...
... multiple cost pools at a variety of levels (unit, batch,
product, and organizational) and then allocates these costs using multiple cost dri-
vers (both volume- and non-volume-related). Thus, costs ... their cost sys-
tems and implement activity-based costing.
Two-Step Allocation
After being recorded in the general ledger and subledger accounts, costs are ac-
cumulated in acti...
... under both cost- plus and fixed-
price contracts have an incentive to shift costs from the fixed-price to the
cost- plus contracts?
b. From an ethical perspective, do you feel such cost shifting ... April’s Cost of Goods Manufactured and Sold sched-
ule showed cost of goods manufactured was $48,000, and the April 1 Finished
Goods Inventory was $8,400.
Chapter 5 Job Order Costi...
... system?
5
PROCESS COSTING WITH STANDARD COSTS
Companies may prefer to use standard rather than actual historical costs for in-
ventory valuation purposes. Actual costing requires that a new production cost ... for standard process costing are
identical to those of FIFO process costing. Unlike the weighted average method,
the emphasis of both standard costing and FIFO are on the measuremen...
... 14,525
COST DATA
Total Material Conversion
Beginning inventory costs $ 16,620
Current costs 122,175 $102,750 $19, 425
Total costs $138,795
Divided by EUP 15,000 14,525
Cost per FIFO EUP $8 .19 $6.85 ... materials? For con-
version costs?
e. How are costs associated with the normal spoilage handled?
f. How are costs associated with the abnormal spoilage handled?
23. (EUP computation; norm...
... value-added (VA) and non-value-added (NVA) cate-
gories. Value-added activities increase the worth of the product or service to the
customer; non-value-added activities consume time and costs ... manufacturing and sell-
ing high-quality products?
49. (Cost of quality) Golf courses are demanding in their quest for high-quality
carts because of the critical need for lawn maintenance. Rid...
... production ben-
efit many other industries.
Part 2 Systems and Methods of Product Costing
378
9
Cost Allocation for Joint Products
and By-Products
CHAPTER
LEARNING OBJECTIVES
After completing this chapter, ... begun?
4
How are joint costs allocated to products?
5
How are by-products treated in accounting systems?
6
How should not-for-profit organizations account for joint costs?
C...