ACCT 2101 Lecture Notes - Lecture 1: Toll Brothers, Income Statement, Intelligent Dance Music
Document Summary
Used by external users; investors & regulators, creditors. Various non-gaap repots such as budgets, performance evaluations & cost reports. Planning/organizing set short and long term objectives & determine the resources & tactics needed to achieve the plan. Directing/leading take action to implement the plan; motivate others to achieve results. Controlling monitor results to determine if the plan is being achieved; take corrective action & adjust future plans, if necessary. Cost object the specific item that managers are trying to determine the cost of. Direct costs costs that can be traced to the cost object. Indirect costs costs that cannot be traced to the cost object, or that are not worth the effort of tracing. Fixed costs costs that stay the same, in total, regardless of activity level **total fixed costs are constant, average or per-unit fixed costs vary inversely with the number of units produced of the number of customers served.
