Samenvatting
Summary - Management Accounting (HBA17)
- Vak
- Instelling
A summary of all the theory and slides seen in the course + my extra notes.
[Meer zien]Voorbeeld 4 van de 37 pagina's
Voorbeeld 4 van de 37 pagina's
In winkelwagen
In winkelwagen
gesponsord bericht van onze partner
Verkoper
Volgen
elinedemunster2001
Voorbeeld van de inhoud
MANAGEMENT ACCOUNTINGIntroduction & costs classifications
1.1 Introduction
Cost is a sacrificed or forgone resource to achieve a specific objective
- Actual cost is a cost that has occurred
- Budgeted cost is a predicted cost
Cost object is anything for which cost measurement is desired
a) Accumulation; collection of cost data in some organized way by means of an
accounting system
b) Assignment; encompasses tracing direct costs to a cost object and allocating indirect
costs to a cost object
Usefulness to managers:
- Making decisions
- Implementing decisions
Different types of firms
Manufacturing-sector companies purchase materials and components and convert them
into various finished goods
<Eg. Apple
Merchandising-sector companies purchase and then sell tangible products without
changing their basic form
<Eg. Supermarket chain, Delhaize
Service- sector companies provide services (intangible products) like legal advice or audits
<Eg. KULeuven, service of education
1.2 Cost classification
The need for cost classification
Goal; grouping costs according to their common characteristics;
3 most commonly used types of cost classification:
o By behaviour: fixed, variable, semi-variable
o By association with cost object: direct costs and indirect costs
o By function: product and period costs
, Variable costs and fixed costs
Classification based on cost behaviour (=how a cost will
react to changes in the levels of business activities)
- Variable cost= expenses that fluctuate
proportionally with the quantity of output, over a defined period of time
- Fixed cost= one which is not affected by changes in the level of activity, over a
defined period of time, for a specific capacity
- Semi-variable cost is one which is partly fixed and partly varies with changes in the
level of activity, over a defined period of time. In this case, if activity levels increase;
cost per unit will reduce but not in proportion to the activity level
Eg. Waterbill, electricity
- Step cost is a fixed cost that increases in steps
<When higher than certain amount, higher cost
Eg. Restaurant and wages of waiters
,REMARK
For product mix & pricing decisions
Based on total costs rather than unit costs
Direct costs and indirect costs
Classification based on association with cost object
- Direct costs; directly traceable to an identifiable unit
- Indirect costs= overhead; no traceable, must be allocated, spread over a number of
identifiable units of the business
Direct materials: cost of raw material that is used to make a product and can be
conveniently traced to the finished product
Eg. Wood in furniture, leather in shoes
Direct labour: cost of salaries, wages and fringe benefits for personnel who work directly on
manufactured products
Eg. Wages paid to an automobile assembly worker
Indirect costs: all other costs
- Indirect materials; materials used to support the production process
Eg. Printing and stationary materials, consumables for maintenance of plant
and machinery
- Indirect labour: cost of personnel who don’t work directly on the product
Eg. Maintenance workers, director’s and supervisors’ salary and security
guards
- Other costs
Eg. Depreciation on plant and equipment, property taxes, insurance
Product costs and period costs
Classification based on function
Product costs: costs assigned to goods that were either purchased or manufactured for
resale
Eg. Materials, labour, transportation, depreciation of machines used in production
Period costs: costs that are treated as expenses in the period in which they are incurred
Eg. Administration costs, selling costs, R&D, depreciation of computers in accounting
department
, Production process & cost flow – Manufacturing company
Material purchases + direct labor +
manufacturing overhead = Cost of
goods manufactured (COGM)
Manufacturing cost flow – Income Statement Cost of goods manufactured
Product costs; not directly related to cost object
Direct; directly related or can be directly traced
through cost object
Indirect; needs to be divided across cost object
with allocation key
Period costs; immediate expenses that are taken
into account in a period where they are incurred
– not directly related to the production
Variable; commission
Full & variable costing
Introduction
A costing system is a framework used by companies to estimate the cost of their
products for profitability analysis, inventory valuation and cost control
Estimating the accurate cost of products is critical for profitable operations
- Full/absorption costing
- Variable/direct costing
Inventory-costing choice
Different costs for different purposes
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper elinedemunster2001. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €10,99. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 66579 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen