COMMERCE 2AB3 Lecture Notes - Lecture 2: Watt, Saudi Aramco, Earnings Before Interest And Taxes
23 Jan 2018
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Document Summary
The basic cost terms, concepts and classifications: (different cost classifications to serve different purposes: classifying costs for the purpose of measuring cost of production/service (product costing, cost, cost object, cost accumulation, cost assignment/attachment, direct costs vs. Indirect costs: cost tracing for direct costs, cost allocation for indirect costs, common cost, cost pool, cost allocation base, product costing systems. 5: activity-based costing system: manufacturing costs ch. 4: process costing system: direct materials cost (dm, direct labor cost (dl, manufacturing (moh) or factory overhead cost (foh, cost of goods manufactured (cgm, prime costs, conversion costs, manufacturing costs, cost of goods sold (cgs) Classifying costs for the purpose of helping mangers to manage their companies & make decisions: activity cost, activity cost behavior, activity cost driver, variable costs vs. 7: decision-making analysis: mixed costs, step-fixed costs ch. 11: control & performance evaluation: relevant range of activity ch. 12: flexible budget & variance analysis: average cost, cost estimation.
