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Summary cost accounting h2
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cost accounting h2 horngren in engels
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Samenvatting Management Accounting
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H2- Actual costs: a cost that has occurred
- Budget costs: predicted costs
- Cost object: anything for which a measurement of costs is desired (product, project,
activity)
How does a cost system determine (vasstellen) the costs of various cost objects?
- Cost accumulation: collection of costs data in an accounting system (different types of
material)
- Assignment: managers assign the accumulation costs to cost objects
With this information managers can make decisions and implementing (uitvoeren) decisions
- Direct costs: related to particular cost object and traceable
- Indirect costs: related to particular cost object but not traceable (salary)
Cost assignment direct costs are traced to cost object an indirect costs allocated (toewijzen)
(cost allocation) to object costs
Factors affecting (in)direct cost classification
- the materiality of the cost (the smaller the amount of a cost, the less it is feasible
(haalbaar) to trace the cost to a cost object)
- available gathering(opeenhoping)-information technology more direct costs
(barcodes)
- Design of operations Classifying is easier when the company’s facility is specially
used for cost object
The broader the definition of cost object, the higher the proportion (deel) of total costs that are
direct costs
- variable costs: changes in proportion when the activity changes
- fixed (constant) costs: remains unchanged
- mixed/semi variable costs: costs with elements of fixed and variable costs
Cost driver: variable that causally affects costs over a given time span numbers of hours of
work by workers cost driver is numbers of hours. On the short run a cost driver doesn’t
affect fixed costs.
Activity based costing systems: costing systems that identify the cost of each activity (testing,
design)
Relevant range: band of normal activity level/volume specific relation between level of
activity/volume and cost in question (zie voorbeeld boek)
Direct fixed and variable costs and indirect variable and fixed costs (zie voorbeeld boek)
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