BUS 254 Lecture Notes - Lecture 4: Total Absorption Costing, Cost Driver, Fixed Cost

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: matt martell

Document Summary

Manufacturing costs: direct materials + direct labour + manu. Overhead: moh: variable costs and fixed costs. Job order: condiments recorded at time of sale, tracked individually, process cost, condiments recorded as overhead, avged out. Abc (activity-based costing: overhead costs allocated to activity cost pools, overhead costs allocated to cost pools assigned to products using cost driver, the more complex product manu. Full or absorption costing: assigns all var. and fixed manu. Costs to the product: required for external reporting, variable costing, assigns only var. manu. Costs to product: dm, dl , var. Overhead: comparison, variable costing, fixed moh is expense in current period, variable costing, doesn"t defer fixed manu. Overhead to future i. e. , they aren"t inventoried: net income under absorption costing compared to net income under variable costing, higher when units produced exceed units sold.