The Essentials of Cost & Managerial Accounting I: Quick Access to the Important Facts and Concepts

by Keller, William D.

• ISBN13: 9780878916641
• ISBN10: 0878916644
• eBook ISBN(s): 9780738671581
• Format: Paperback
• Copyright: 1989-05-01
• Publisher: Research & Education Assn
• More Book Details
• Purchase Benefits

Summary

Topics include the nature and usefulness of cost accounting, cost items and purposes, cost flows and accumulation, cost- volume-profit relationships, costing methods, job order costing, process costing, cost allocation, variable costing, master budgets, and flexible budgets.

Table of Contents

The Nature and Usefulness of Cost Accounting and the Accountant's Role	1	(7)
Definition of Cost Accounting	1	(1)
Comparison of Cost Accounting with Financial Accounting	1	(1)
Comparison of CPA Certificate with CMA Certificate	2	(1)
Comparison of the Offices of Controller and Treasurer	2	(1)
Costs and Benefits of Accounting	3	(1)
Line vs. Staff Authority	4	(4)
Introduction to Cost Items and Purposes	8	(13)
Manufacturing Costs and Merchandising Costs	8	(1)
Direct and Indirect Labor	9	(1)
Idle Time	9	(1)
Overtime Premium	9	(1)
Labor Fringe Benefits	10	(1)
Variable and Fixed Costs, and Semi-Variable Costs	10	(4)
Direct and Indirect Costs	14	(1)
Controllable and Noncontrollable Costs	15	(1)
Differential or Incremental Costs	15	(1)
Opportunity Costs	16	(1)
Sunk Costs	17	(4)
Accounting for Cost Flows and Accumulation. Cost Behavior	21	(11)
Cost Flows of a Mercantile Business	21	(1)
Cost Flows of a Manufacturing Business	22	(3)
Perpetual vs. Periodic Inventories	25	(1)
Actual Costs vs. Applied Costs. The Factory Overhead Control Account	26	(1)
Underapplied vs. Overapplied Factory Overhead	27	(1)
Cost Accumulation	28	(1)
Cost Behavior	28	(4)
Cost-Volume-Profit Relationships	32	(13)
Contribution Margin, and Contribution MarginRatio	32	(1)
Break-Even Point	33	(2)
Target Profits
Margin of Safety	35	(1)
Profit Maximization	36	(1)
The Profit Equation	37	(1)
Income Taxes	37	(1)
Finding Targeted Sales Dollars	38	(1)
Cost-Profit-Volume Analysis with Semi-Fixed Costs	39	(1)
Multi-Product Cost-Profit-Volume Analysis	40	(1)
Sensitivity Analysis	40	(1)
Predatory pricing	40	(1)
Irrelevance of Past (Sunk) Costs	40	(1)
Capacity Costs	41	(1)
Curvilinear Variable Costs	41	(1)
Learning Curve	41	(1)
Discretionary Costs	41	(4)
Product Costing Methods	45	(4)
Variable Costing vs. Full Absorption Costing	45	(1)
Overhead Application Rates	45	(2)
Actual, Normal, or Standard Costing	47	(2)
Job Order Costing	49	(15)
Job Order vs. process Costing	49	(1)
Source Documents of Job Costing	49	(1)
Cost Flows for Job Order Costing	49	(1)
Direct and Indirect Materials	50	(1)
Accounting for Labor in Job Order Cost Accounting	50	(1)
Accounting for Manufacturing Overhead in Job Order Cost Accounting	51	(1)
Transfers to Finished Goods in Job Order Cost Accounting	51	(1)
Transfers to Cost of Goods Sold in Job Order Cost Accounting	52	(1)
Applying Factory overhead	52	(2)
Two Ways of Closing Out Factory Overhead Control	54	(2)
Computation of Spending Variances	56	(1)
Computation of Production Volume Variances	56	(1)
Job Cost Sheets	57	(1)
Stores Requisitions	58	(1)
Work Tickets	58	(1)
Clock Cards	59	(1)
Responsibility Centers	59	(5)
Process Costing	64	(5)
What Process Costing Does	64	(1)
Equivalent Units	64	(1)
Assigning Costs of Units	64	(1)
Incomplete Units In Beginning And Ending Inventories (First-In, First-Out)	64	(2)
Production Cost Report	66	(1)
Spoilage Computations	66	(1)
Sequential processing	67	(1)
Parallel Processing	67	(1)
Flow of Materials, Labor and Overhead Costs in Process Costing	67	(2)
Cost Allocation In Service Departments and Segmented Reporting	69	(5)
The Nature of Service Departments	69	(1)
Direct Method of Allocation of Costs	69	(1)
The Step Method of Allocation of Costs	69	(1)
The Reciprocal Method	70	(1)
Plantwide vs. Department Rates	70	(1)
Engineered Costs, Discretionary Costs, and Committed Costs	70	(1)
Operating Leverage	71	(3)
Variable Costing	74	(4)
Difference Between Variable and Full (Absorption) Costing	74	(1)
Advantages of Variable Costing	75	(1)
Advantages of Absorption Costing	76	(2)
Master Budgets and Standards	78	(6)
Purpose of Budgets	78	(1)
Time Coverage of Budgets	78	(1)
Pro Forma Statements	78	(1)
Operation Budget	78	(1)
Financial Budget	79	(1)
Sales Budget	79	(1)
Production Budget	79	(1)
Direct Labor Budget	80	(1)
Cost of Goods Sold Budget	80	(1)
Cash Budget	81	(1)
Participative Budgeting	81	(1)
The Delphi Technique (To help forecasting and reduce bias)	81	(3)
Flexible Budgets	84	(1)
Flexible Budgets	84	(2)
Continuous (Perpetual) Budgets	86	(1)
Participative (Self Imposed) Budgets	86	(1)
Sales Forecasting	86	(1)
Just-In-Time Inventory Systems	87	(1)
Zero-Base Budgeting (In-Depth Review)	88