Textbook Notes (369,205)
Canada (162,462)
Accounting (533)
ACC 406 (130)
Chapter 2

Chapter 2

2 Pages
113 Views

Department
Accounting
Course Code
ACC 406
Professor
Vincent Cappelli

This preview shows 80% of the first page. Sign up to view the full 2 pages of the document.
Description
ACC 406 Chapter 2Basic Managerial Accounting ConceptsTHE MEANING AND USES OF COSTCost is the amount of cash or cash equivalent sacrificed for goodsservices that are expected to bring a current or future benefitExpenses Costs that are used up in the production of revenues ie that are expired costsPrice is the revenue per unit for the company revenue and price are the same cost is differentAccumulating and Assignment CostsAccumulating costs is the way that costs are measured and recorded bill arrives bookkeeper records and addition to the telephone expense and account payableAssigning Costs is the way a cost is linked to an object why the money was spentCost Objects is any item such as a product customer department project geographic region plant etc for which costs are measured and assignedex Taking a summer coursecourse is cost object cost would also include tuition books fees transportation and opportunit cost foregone wagesAssigning Costs to Cost ObjectsTracing direct costs Direct Costs are those costs that can be easily and accurately traced to a cost object Relationship between cost and the object can be physically observedIndirect Costs are costs that cannot be easily and accurately traced to a cost object Must be assigned through allocationAllocation means that an indirect cost is assigned to a cost object by using a reasonable and convenient method based on convenience or some assume casual linkageOther Categories of
More Less
Unlock Document

Only 80% of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit