Essay about Notes 1 for Introduction of Managerial Accounting
In supporting managers, management accountants have three guidelines. These guidelines are: Cost-benefit analysis, behavioral considerations and technical considerations, and different costs for different purposes.
Galway Co. management desires cost information regarding its Celtic brand. The Celtic brand is a(n) cost object. Cost objects are anything for which a measurement of cost is desired
The cost of a product can be measured as any of the following except as one b. identified as period cost
Which of the following is not a factor in cost-volume-profit analysis? c. Total variable costs
Chpt.4 PPT----Basic Costing …show more content…
Three Methods for Adjusting Over/Underapplied Overhead: 1. Adjusted allocation rate approach—all allocations are recalculated with the actual, exact allocation rate. 2. Proration approach—the difference is allocated between cost of goods sold, work-in-process, and finished goods based on their relative sizes. 3. Write-off approach—the difference is simply written off to cost of goods sold.
When management is deciding between approaches, they should consider the following: the purpose of the adjustment; The size of the amount that was over- or underallocated; Whether the variance was over- or underallocated; The choice of method should be based on such issues as materiality, consistency, and industry practice.
Chpt. 3 PPT: A Five-Step Decision-Making Process in Planning and Control – Revisited: DEFINE-Identify the problem and uncertainties. MEASURE-Obtain information. ANALYZE-Make predictions about the future. IMPROVE-Make