ACTG 2300 Lecture 9: Day 9 Notes

• School: University of Denver
• Department: Accounting
• Course: ACTG 2300
• Professor: Patelli Lorenzo

Document Summary

Resources (oh cost) that go into activites and lead to cost. Resources to activity: what activities go into, ex: set up machine, run, maintain. Under abc we have a different cost driver for each activity. For decision making: ex: do we drop a product or not. Going to be fixed no matter what. Difference between traditional and abc: abc includes some non-manufacturing cost, abc excludes some manufacturing cost (organization-sustaining cost, abc uses multiple cost pools and multiple cost drivers, as many pools and drivers as we identify. Cogs: dm dl vmoh and fmoh. Sg&a: fixed and variable, product margins (profit) of b300 and t500 using traditional. Moh cost applying it to 2+ products. ,000 / 304,000 (dl $) = per dl $ For every spent in dl, i charge of moh. B300: 20 * 70,000 = ,400,000. T500: 40 * 17,500 = ,000.