MGMT 30B Lecture Notes - Lecture 6: Flight Attendant, American Airlines, Unaccompanied Minor
8 Jun 2016
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Lecture 6 jan 23 a. 1. a. a. 1. a. i: focuses only on how overhead is allocated. Not all products produced used the same amount of overhead resources. Fails to consider impact of other factors on overhead costs. Impact of product development cycles requires product experts. Instead, use numerous allocation bases to assign a. 1. b. a. 1. a. ii. a. 1. a. iii. manufacturing overhead costs a. 1. b. i. a. 1. b. ii. Comparison to job-order costing base has a different variable cost a. 2. steps: a. 2. a. a. 2. b. a. 2. c. a. 2. c. i. a. 2. c. ii. Goal: use activities to assign costs instead of direct labor or machine hours. Identify small number of activities causing overhead costs and classify into cost pools: unit-level activities: every time a unit gets produced. Hallmark: depends on the number of units. American airlines: check in attendant, flight attendant giving beverages: batch-level activities: every time a batch (group of units) is produced. Hallmark: depends on the number of batches produced.
