ACCTG 2600 Lecture Notes - Lecture 6: Finished Good, Variable Cost, Management Accounting

• School: University of Utah
• Department: Accounting
• Course: ACCTG 2600
• Professor: Gallacher

Document Summary

5:18 pm v know the differences between financial and managerial accounting. Financial: externally focused, must follow externally imposed rules. Objective financial information, historical orientation, information about the firm as a whole, more self-contained. Managerial: internally focused, no gaap, financial and information; subjective information possible nonfinancial, emphasis on the future, internal evaluation and decisions based on very detailed information, broad, multidisciplinary v know about the ethical components of managerial accounting. Table 1. 4 ethical rules v know about direct materials, direct labor, and manufacturing overhead. v know period costs vs. products costs. Period: go straight to the income statement. all costs that are not product costs (i. e. , all areas of the value chain except for production). Salary, rent for warehouse not the cost of a sold product. Product: v know discretionary vs. committed fixed costs. Discretionary cost: the ceo/other has the discretion on whether they pay. Discretionary cost: the ceo/other has the discretion on whether they pay that bill or not.