ACC2200 Study Guide - Final Guide: Activity-Based Costing, Variable Cost, Management Accounting

• School: Monash University
• Department: Business - Accounting
• Course: ACC2200
• Professor: Prabanga Thoradeniya

Document Summary

Week 2 - cost terms & concepts ch 2. Many short term and long term decisions require an understanding of costs. Monitors performance across a range of critical success factors. Helps to control, manage and reduce costs and resources. Looks at the difference b/w actual and planned costs. Recognises that a range of factors can only way costs can change cause costs to vary. Info is mainly obtained from financial accounting system. Example of traditional = product costing systems and process costing systems = the costs of departments. Example of modern = activity based costing = the cost of activities, costs to maintain customers, costs to maintain suppliers, etc. Before classifying costs, we must understand how managers intend to use the info. The same cost can be classified in many ways depending on the intended use of the cost info.