ACC 406- Final Exam Guide - Comprehensive Notes for the exam ( 28 pages long!)

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30 Nov 2017
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Unit cost is a critical piece of information for any company; specifically manufacturing firms. Making a number of important strategic decisions. The cogs is most significant cost used to determine operating income; requires knowledge of number of units sold and their cost. Decisions to introduced a new product, to continue a current product, and to establish long-run prices are examples of important internal decisions that rely on unit cost information. A servi(cid:272)e fir(cid:373) (cid:373)ust first ide(cid:374)tify the "u(cid:374)it (cid:271)ei(cid:374)g provided. Ex hospital by patient, patient day, and type of procedure. Service firms do not need to value finished goods inventories as a manufacturer must. A cost accounting system measures and assigns costs so that the unit cost of a product or service can be established. Firms producing unique products or providing services require a job-order accounting system ex. tailor making custom suits, a builder who remodels homes, an auto repair shop.

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