Principles of Cost Accounting

by Vanderbeck, Edward J.

• ISBN13: 9780324100945
• ISBN10: 0324100949
• Format: Hardcover
• Copyright: 2001-07-09
• Publisher: South-Western College Pub

Summary

Save time with PRINCIPLES OF COST ACCOUNTING! This cost accounting textbook provides a thorough but concise understanding of cost concepts, cost behavior, and cost accounting techniques as applied to manufacturing and service businesses. Studying and reviewing the material is made easy with built-in textbook tools, including demonstration problems at the end of each chapter and integrated learning objectives. And the textbook makes it easy to see how you will use the content in the business world through its inclusion of real-world examples and trends.

Table of Contents

Introduction to Cost Accounting	1	(49)
Uses of Cost Accounting Data	3	(3)
Determining Product Costs and Pricing
Planning and Control
Relationship of Cost Accounting to Financial Accounting	6	(4)
Costs of Goods Sold
Inventories
Elements of Manufacturing Costs	10	(2)
Direct Materials
Direct Labor
Factory Overhead
Summary of Manufacturing Costs
Flow of Costs
Illustration of Accounting for Manufacturing Costs	12	(10)
Cost Accounting Systems	22	(27)
Special Order
Continuous or Mass Production
Combination of Systems
Standard Costing
Illustration of a Job Order Cost System
Work in Process Control Account
Work in Process in the Manufacturing Statement
Accounting for Materials	49	(50)
Materials Control	50	(5)
Physical Control of Materials
Controlling the Investment in Materials
Materials Control Procedures	55	(10)
Materials Control Personnel
Control During Procurement
Control During Storage and Issuance
Accounting for Materials	65	(12)
Determining the Cost of Materials Issued
Accounting Procedures
Scrap, Spoiled Goods, and Defective Work	77	(4)
Scrap Materials
Spoiled and Defective Work
Appendix: Just-in-Time Materials Control	81	(18)
JIT and Cost Control
JIT and Cost Flows
Accounting for Labor	99	(42)
Wage Plans	100	(2)
Hourly Rate Plan
Piece-Rate Plan
Modified Wage Plans
Controlling Labor Cost	102	(7)
Clock Cards and Time Tickets
Payroll Department
Accounting for Labor Costs and Employers' Payroll Taxes	109	(8)
Employers' Payroll Taxes
Illustration of Accounting for Labor Costs
Payroll Accrual	117	(2)
Special Labor Cost Problems	119	(22)
Shift Premium
Employee Pension Costs
Bonuses
Vacation and Holiday Pay
Accounting for Bonuses, Vacations, and Holiday Pay
Accounting for Factory Overhead	141	(56)
Identifying Cost Behavior Patterns	142	(2)
Analyzing Semivariable Factory Overhead Costs	144	(4)
Observation Method
High-Low Method
Scattergraph Method
Limitations of High-Low and Statistical Scattergraph Methods
Budgeting Factory Overhead Costs	148	(1)
Accounting for Actual Factory Overhead	149	(4)
Factory Overhead Analysis Spreadsheets
Schedule of Fixed Costs
General Factory Overhead Expenses
Summary of Factory Overhead
Distributing Service Department Expenses	153	(7)
Applying Factory Overhead to Production	160	(6)
Direct Labor Cost Method
Direct Labor Hour Method
Machine Hour Method
Activity-Based Costing Method
Accounting for Actual and Applied Factory Overhead	166	(31)
Process Cost Accounting---General Procedures	197	(42)
Comparison of Basic Cost Systems	197	(2)
Materials and Labor Costs
Factory Overhead Costs
Product Cost in a Process Cost System	199	(1)
Nondepartmentalized Factory
Departmentalized Factory
Work in Process Inventories	200	(2)
Cost of Production Summary---One Department, No Beginning Inventory	202	(3)
Cost of Production Summary---One Department, Beginning Inventory	205	(2)
Cost of Production Summary---Multiple Departments, No Beginning Inventory	207	(10)
Cost of Production Summary---Multiple Departments, Beginning Inventory	217	(7)
Changes in Prior Department's Unit Transfer Costs	224	(15)
Process Cost Accounting---Additional Procedures	239	(42)
Equivalent Production---Materials Not Uniformly Applied	239	(9)
Illustrative Problem No. 1
Illustrative Problem No. 2
Illustrative Problem No. 3
Units Lost in Production	248	(1)
Units Gained in Production	249	(3)
Equivalent Production-First-In, First-Out Method	252	(8)
Illustrative Problem No. 1
Illustrative Problem No.2
Joint Products and By-Products	260	(21)
Accounting for Joint Products
Accounting for By-Products
Standard Cost Accounting-Materials and Labor	281	(38)
Types of Standards	282	(1)
Standard Cost Procedures	283	(1)
Determination of Standard Costs for Materials and Labor
Recording Standard Costs for Materials and Labor
Determination of Variances	284	(4)
Accounting for Variances	288	(3)
Alternative Method of Recording Materials Cost
Disposition of Standard Cost Variances
Analyses of Variances	291	(4)
Features of Standard Cost Accounting	295	(1)
Illustration of Standard Cost in a Departmentalized Factory	296	(23)
Budgeting and Standard Cost Accounting for Factory Overhead	319	(50)
Principles of Budgeting	320	(1)
Preparing the Master Budget	321	(12)
Sales Budget
Production Budget
Direct Materials Budget
Direct Labor Budget
Factory Overhead Budget
Cost of Goods
Sold Budget
Selling and Administrative Expenses Budget
Budgeted Income Statement
Other Budgets
Evaluating Budget Performance
Flexible Budgeting	333	(5)
Preparing the Flexible Budget for Factory Overhead
Using the Flexible Budget
Semifixed and Semivariable Costs
Service Department Budgets and Variances
Summary of the Budgeting Process
Analysis of Factory Overhead Standard Cost Variances	338	(2)
Two-Variance Method of Analysis	340	(5)
Appendix: Four-Variance and Three-Variance Methods of Analysis	345	(24)
Four-Variance Method of Analysis
Three-Variance Method of Analysis
Cost Accounting for Service Businesses	369	(24)
Job Order Costing for Service Businesses	370	(4)
Job Cost Sheet for a Service Business
Choosing the Cost Allocation Base
Tracing Direct Costs to the Job
Cost Performance Report
Budgeting for Service Businesses	374	(4)
The Revenue Budget
The Labor Budget
The Overhead Budget
The Other Expenses Budget
The Budgeted Income Statement
Activity-Based Costing in a Service Firm	378	(2)
Converting Indirect Costs to Direct Costs
Multiple Indirect Cost Pools
Job Cost Sheet---Activity-Based Costing
Allocations Using Simplified Costing Versus Activity-Based Costing	380	(13)
Cost Analysis for Management Decision Making	393	(40)
Direct Costing and Absorption Costing	394	(4)
Product Costs Versus Period Costs
Illustration of Direct and Absorption Costing Methods
Merits and Limitations of Direct Costing	398	(1)
Segment Reporting for Profitability Analysis	399	(2)
Cost-Volume-Profit Analysis	401	(7)
Break-Even Analysis
Break-Even Chart
Break-Even Analysis for Management Decisions
Effect of Sales Mix on Break-Even Analysis
Contribution Margin Ratio and Margin of Safety	408	(1)
Effect of Income Tax on Break-Even Point and Net Income	409	(1)
Differential Cost Analysis	410	(3)
Accept or Reject a Special Order
Make or Buy
Distribution Costs	413	(20)
Glossary	433	(11)
Index	444