BUS 254 Chapter Notes - Chapter 2: Sheet Metal, Mass Customization, European Cooperation In Science And Technology

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: Michelle Iorio

Document Summary

The process of management involves formulating strategy, planning, control, decision making and directing operational activities. Cost: the sacrifice made, usually measured by the resources given up, to achieve a particular purpose. Different cost concepts and classifications are used for different purpose: enables the management accountant to provide appropriate cost data to the managers who need it. Timing as to when a cost is recognized as an expense is cruicial. Expense: cost incurred when an asset is used up or sold fir the purpose of generating revenue. Product cost: cost assigned to goods that were either purchased or manufactured for resale: used to value the inventory of manufactured goods or merchandise until the goods are sold. Cost of goods sold: the period cost recognized as an expense during the period of the sale. Product cost of merchandise inventory acquired by a retailer/wholesaler for resale consists of the purchase cost plus shipping.