Textbook Notes (363,094)
Canada (158,187)
Accounting (242)
ACCT 2230 (113)
Chapter 3

Chapter 3 Managerial Accounting Notes

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University of Guelph
ACCT 2230
Elliot Currie

Chapter 3 accounting notesCosting Product costing is the process of assigning costs to the productsservices provided by a company Main purpose of managerial costing system should be to provide cost data to help managers plan control directmake decisionsAbsorptions costing a costing method that includes all manufacturing costsdirect material direct labourboth variablefixed overhead as part of the cost of a finished unit of product Also called full cost Most common approach to product costingProcessJobOrder Costing Many costs dont change month to month rent while others do productionhard to determine cost of productserviceProcess CostingThis costing system is used in situations where the company produces many units of a single product for long periods of time Eg frozen orange juice These systems accumulate costs in a particular operation department for an entire period month year etc and then divide this total cost by the number of units produced during the periodUnit product costTotal manufacturing costPer Litre KG bottle Total units produced Litres kg bottles Since one unit of product is indistinguishable from any other unit of product each unit is assigned the same average costJobOrder CostingThis costing system is used in situations where many different products are produced each period Costs are traced and allocated to jobs and then the costs of the job are divided by the number o
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