Kế toán, kiểm toán - Chapter 14: Managerial accounting concepts and principles
C1: Explain the purpose and nature of managerial accounting and the role of ethics. C2: Describe accounting concepts useful in classifying costs. C3: Define product and period costs and explain how they impact financial statements. C4: Explain how the balance sheets and income statements for manufacturing and merchandising companies differ. C5: Explain manufacturing activities and the flow of manufacturing costs. C6: Identify trends in managerial accounting.
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Financial and Managerial AccountingWild, Shaw, and Chiappetta Fourth Edition McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.Chapter 14Managerial Accounting Concepts and PrinciplesConceptual Learning ObjectivesC1: Explain the purpose and nature of managerial accounting and the role of ethics.C2: Describe accounting concepts useful in classifying costs.C3: Define product and period costs and explain how they impact financial statements.C4: Explain how the balance sheets and income statements for manufacturing and merchandising companies differ.C5: Explain manufacturing activities and the flow of manufacturing costs. C6: Identify trends in managerial accounting.14-*A1: Compute cycle time and cycle efficiency, and explain their importance to production management.Analytical Learning Objectives14-*P1: Compute cost of goods sold for a manufacturer. P2: Prepare a manufacturing statement and explain its purpose and links to financial statements. Procedural Learning Objectives14-*Managerial accounting provides financial and non-financial informationfor managers of an organization and other decision makersFinancial accounting provides generalpurpose financialinformation to those who are outside the organization.Managerial and Financial AccountingC 114-*Nature of Managerial AccountingC 114-*BehaviorTraceabilityControllabilityRelevanceFunctionManagerial Cost ConceptsC214-* Cost behavior means how a cost will react to changes in the level of business activity.Classification by BehaviorC 2A fixed cost does not change with changes in the volume of activityA variable cost changes in proportion to changes in the volume of activityA mixed cost refers to a combination of fixed and variable14-*Direct costsCosts traceable to a single cost object.Examples: material and labor cost for a product.Indirect costsCosts that cannot be traced to a single cost object.Example: maintenance expenditures benefiting two or more departments.Classification by TraceabilityC 214-*The degree of control depends on the level of management in the organization.More ControlMore ControlVery little controlClassification by ControllabilityC 214-* All costs incurred in the past that cannot be avoided or changed. Sunk costs should not be considered in decisions.Out-of-pocket costs require a future outlay of cash and should be considered in decisions.Opportunity costs are the potential benefits lost by choosing a specific action from two or more alternatives Classification by Relevance:C 214-*The ProductClassification by Function: Product CostsDirect MaterialDirect LaborManufacturing OverheadC 314-*Period Costs (Expenses)ProductCosts (Inventory)Inventory Not Sold in 2011OperatingExpensesCost ofGoods SoldRaw MaterialsGoods in ProcessFinished GoodsCost ofGoods Sold2011 Costs Incurred2011 IncomeStatement2012 IncomeStatement2011 BalanceSheet InventoryInventory Sold in 2011Period and Product Costs in Financial StatementsC314-*Completed products for sale.Materials waiting to be processed.Can be director indirect.Partially complete products.Material to which some labor and/or overhead have been added.Balance Sheet of a ManufacturerRaw MaterialsFinished GoodsGoods in ProcessC 414-*Beginning Merchandise InventoryBeginning Finished Goods InventoryCost of Goods PurchasedCost of GoodsManufacturedEnding Merchandise InventoryEndingFinished Goods InventoryCost of Goods SoldMerchandiserManufacturer+_+==_The major differenceIncome Statement of a ManufacturerC414-*Finished Goods Beginning InventoryCost of Goods ManufacturedFinished Goods Ending InventoryRaw MaterialsBeginning InventoryRaw Materials PurchasesRaw Materials Ending InventoryCost of Goods SoldGoods in Process Beginning InventoryDirect LaborFactory OverheadRaw Materials UsedSales activityProduction activityMaterials activityFlow of Manufacturing ActivitiesGoods in Process Ending InventoryC514-*Summarizes the types and amounts of costsIncurred in a company’s manufacturing process. Direct Materials Used + Direct Labor + Factory Overhead = Total Manufacturing Costs + Beginning Work in Process – Ending Work in Process = Cost of Goods ManufacturedManufacturing StatementP214-*End of Chapter 1414-*
