Beruflich Dokumente
Kultur Dokumente
MANAGEMENT
PowerPoint Presentation by ACCOUNTING
Gail B. Wright
Professor Emeritus of Accounting 8TH EDITION
Bryant University
BY
© Copyright 2007 Thomson South-Western, a part of The
Thomson Corporation. Thomson, the Star Logo, and
South-Western are trademarks used herein under license.
HANSEN & MOWEN
COST: Definition
6
LO 1
COST ASSIGNMENT
7
LO 1
1. Direct tracing
2. Driver tracing
3. Indirect costs
8
LO 2
9
LO 2
DIFFERENCES
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LO 2
11
LO 2
EXHIBIT 2-3
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LO 2
EXHIBIT 2-3
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LO 2
EXHIBIT 2-3
14
LO 2
PRODUCT COSTS
15
LO 3
16
LO 3
INCOME STATEMENT:
Manufacturing Firm
EXHIBIT 2-5
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LO 3
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LO 4
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LO 4
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LO 4
MANAGEMENT ACCOUNTING
SYSTEMS (FBM)
Functional-based management system (FBM)
Cost view
Only uses drivers related to the production function to
assign costs
Direct materials, direct labor, machine hours
Operational efficiency view
Holds managers of each function (e.g., engineering)
responsible for controlling costs to derive operating
efficiency
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LO 4
MANAGEMENT ACCOUNTING
SYSTEMS (ABM)
Activity-based management system (ABM)
Cost view
Driver analysis, activity analysis, performance
evaluation
A tracing-intensive system
Operational efficiency view
Focuses on managing activities and improving values
for operational efficiency
22
LO 4
EXHIBIT 2-10
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CHAPTER 2
THE END
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