BUSS1030 Lecture Notes - Lecture 11: Relate, Total Absorption Costing, Cost Accounting
31 Jul 2018
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Explain the nature of full costing, and the reasons why this information is useful to managers. Nature of full costing how we set prices for our products. Buss1030 lecture 11: useful for projections and assessing past decisions, e. g. continuing with, or abandoning, a particular product or service. Deduce the full cost of a unit of output in a single or multi-product (or service) environment, differentiate between direct and indirect costs, and discuss the problem of charging overheads to jobs in a multi-product (multi-service) environment. Deriving full costs in a single or multi-product or service operation. Direct cost + indirect cost = full cost. Buss1030 lecture 11: or direct labour hours. Driven by both direct labour hours and machine hours two drivers and two jobs. Calculate two overhead recovery rates based on machine and labour hours. Explain the advantages of segmenting overheads, and use this approach to apply overheads on a departmental basis.
