Ch 1 & 2
What are the 4 typical managerial functions?
Planning, organising, leading, controlling
A card that records all costs related to the product/service/batch.
What is job cost record?
What's traditional costing?
Assigns all manufacturing costs to product.
Needed for external reporting.
Absorption Costing
What's our professor's name?
Hwee Chang
What's the difference between job order costing & process costing?
Job-costing - allocated costs to products that are identified by individual units/batches
Process-costing - averages costs, mass production
What's the difference between actual costing & normal costing?
Actual Costing - actual MOH is charged to product
Normal Costing- predetermined OH rate is used at beginning of financial period
Estimated MOH/Normal Activity Level
Predetermined OH Rate under normal costing
What types of manufacturing OH are variable?
Unit-level activity costs, indirect materials like glue, indirect labour, utilities
What's SFU's mascot?
Some dog
Costs that stay fixed within a certain activity range but changes when range is exceeded.
What are semi-fixed costs?
What's the 2 steps used in product costing system?
1. Accumulate Cost
2. Assigns costs to final product
Name all the criterion types use to determine cost drivers
1. Causal
2. Benefits received
3.rEasonableness
4. Simplicity
Net income is unaffected by changes in _______________.
Production levels
What time is the final exam?
3:30 to 6:30 pm haha
How to do the High-Low Method?
1. Determine variable cost per unit (change in total costs divided by changes in activity level)
2. Determine FC through Total cost - VC (choose either high or low activity level)
What's a prime cost & conversion cost?
Prime: DM + DL
Conversion: DL + MOH
What are the steps to determine the predetermined OH rate in ABC?
1. Identify activities & costs to activity cost pools
2. Determine cost drivers appropriate to activity cost pool
3. Determine rate per cost driver
4. Allocate OH
When there's more goods produced than sold, _________ has higher net income than ______________.
1. Absorption Costing
2. Variable Costing
Where's the exam room?
AQ3181
Summarize the 8 transactions/flow of costs in the job-order cost system.
1. Company purchases raw materials
2. Company incurs factory labour
3. Company incurs MOH costs (e.g. utilities)
4. Company assigns DM to WIP & IM to MOH
5. Company assigns DL to WIP & IL to MOH
6. MOH costs assigned to WIP
7. Cost of job/finished goods goes from WIP to FG
8. FG to COGS
How would calculate COGM?
WIP Beginning
+ DM Used (RM Beg + RM Purchase - RM End)
+ DL
+ MOH
- WIP Ending
What are the pros & cons of ABC?
Cons: Costly, need allocations still, sus
1. No change in inventory
2. Production > sales
3. Sales < production
1. Nothing
2. Absorption
3. Variable
What's my favourite colour?
Sky blue