Part I Job Overview
Chapter 1 - Overview of Cost Accounting
Introduction
Financial Reporting
Management Reporting
Problem Resolution
Price Setting
Cost Investigation
Budget Formulation
Constraint Analysis
Cost Accumulation Systems
Summary
Review Questions
Review Answers
Chapter 2 - The Cost Accountant Job Description
Introduction
To Whom Does The Cost Accountant Report?
What Are The Principal Accountabilities Of The Cost Accountant?
What Are The Qualifications Of A Cost Accountant?
Who Does The Cost Accountant Supervise?
Summary
Review Questions
Review Answers
Part II Inventory Valuation
Chapter 3 - Inventory Valuation
Introduction
Valuation Step 1: The Quantity Of Inventory On Hand
The Periodic Inventory System
The Perpetual Inventory System
The Gross Profit Method
Valuation Step 2a: Inventory Costing
The First In, First Out Method
The Last In, First Out Method
The Weighted Average Method
Standard Costing
The Retail Inventory Method
Valuation Step 2b: Inventory Costing
Job Costing
Process Costing
By-Product And Joint Product Costing
Valuation Step 3: Overhead Allocation
Valuation Step 4: Inventory Valuation
The Lower Of Cost Or Market Rule
Obsolete Inventory Accounting
Summary
Review Questions
Review Answers
Chapter 4 - Job Costing
Introduction
Overview Of Job Costing
When Not To Use Job Costing
Accounting For Direct Materials In Job Costing
Accounting For Labor In Job Costing
Accounting For Actual Overhead Costs In Job Costing
Accounting For Standard Overhead Costs In Job Costing
The Importance Of Closing A Job
The Role Of The Subsidiary Ledger In Job Costing
Job Costing Controls
Summary
Review Questions
Review Answers
Chapter 5 - Process Costing
Introduction
Overview Of Process Costing
The Weighted Average Method
The Standard Costing Method
The First In, First Out Method
The Hybrid Accounting System
Process Costing Journal Entries
Problems With Process Costing
Summary
Review Questions
Review Answers
Chapter 6 - Standard Costing
Introduction
Overview Of Standard Costing
Advantages Of Standard Costing
Disadvantages Of Standard Costing
How To Create A Standard Cost
Historical, Attainable, And Theoretical Standards
How To Account For Standard Costs
Overview Of Variances
The Purchase Price Variance
Material Yield Variance
Labor Rate Variance
Labor Efficiency Variance
Variable Overhead Spending Variance
Variable Overhead Efficiency Variance
Fixed Overhead Spending Variance
Selling Price Variance
Sales Volume Variance
Problems With Variance Analysis
The Controllable Variance
The Favorable Or Unfavorable Variance
Where To Record A Variance
Which Variances To Report
How To Report Variances
Summary
Review Questions
Review Answers
Chapter 7 - Joint and By-Product Costing
Introduction
Split-Off Points And By-Products
Why We Allocate Joint Costs
How To Allocate Joint Costs
How To Determine Prices
Special Concerns With By-Product Costing
Summary
Review Questions
Review Answers
Chapter 8 - Waste Accounting
Introduction
Definition Of Spoilage
Accounting For Normal Spoilage
Accounting For Abnormal Spoilage
Accounting For The Sale Of Spoilage
Cost Allocation To Spoilage
Definition Of Rework
Reporting Rework
Accounting For Rework
Definition Of Scrap
Accounting For Scrap
Impact Of Waste On Manufacturing Systems
Summary
Review Questions
Review Answers
Part III Product Pricing
Chapter 9 - Product Pricing: What does this Cost?
Introduction
What Does This Cost?
The Issue Of Pricing Duration
The Issue Of Overhead Costs
The Issue Of Overhead Application
Corporate Overhead Costs
What Does This Cost, Part Two
The Issue Of The Bottleneck
What Does This Cost, Part Three
Summary
Review Questions
Review Answers
Chapter 10 - Target Costing
Introduction
The Basic Steps Of Target Costing
Value Engineering Considerations
The Cost Reduction Program
The Milestone Review Process
Problems With Target Costing
The Members Of A Design Team
The Role Of The Cost Accountant In Target Costing
Data Sources For Target Costing
The Product Life Cycle And Target Costing
Summary
Review Questions
Review Answers
Chapter 11 - Transfer Pricing
Introduction
Overview Of Transfer Pricing
Market Price Basis For Transfer Pricing
Adjusted Market Price Basis For Transfer Pricing
Negotiated Basis For Transfer Pricing
Contribution Margin Basis For Transfer Pricing
Cost Plus Basis For Transfer Pricing
Cost Anomalies In A Cost-Based Transfer Price
Pricing Problems Caused By Transfer Pricing
The Tax Impact Of Transfer Prices
Summary
Review Questions
Review Answers
Part IV Cost Analysis Methods
Chapter 12 - Direct Costing
Introduction
Overview Of Direct Costing
Contribution Margin Versus Gross Margin
Direct Costing As An Analysis Tool
Direct Costing Pitfalls
Summary
Review Questions
Review Answers
Chapter 13 - Activity-Based Costing
Introduction
The Problem With Overhead Allocation
Overview Of Activity-Based Costing
Activity-Based Management
Advantages Of Activity-Based Costing
Problems With Activity-Based Costing
The Incremental Cost Reduction Fallacy
The Bill Of Activities
System Scope Issues
System Integration Issues
Summary
Review Questions
Review Answers
Chapter 14 - Constraint Analysis
Introduction
Constraint Analysis Operational Terminology
Overview Of Constraint Analysis
The Cost Of The Bottleneck
Local Optimization
Constraint Analysis Financial Terminology
Constraint Analysis From A Financial Perspective
The Constraint Analysis Model
The Decision To Sell At A Lower Price
The Decision To Outsource Production
The Capital Investment Decision
The Decision To Cancel A Product
Comparison Of Abc To Constraint Analysis
Summary
Review Questions
Review Answers
Chapter 15 - Capital Budgeting Analysis
Introduction
Overview Of Capital Budgeting
Bottleneck Analysis
Net Present Value Analysis
The Payback Method
Capital Budget Proposal Analysis
The Outsourcing Decision
The Capital Budgeting Application Form
The Post Installation Review
The Lease Versus Buy Decision
Summary
Review Questions
Review Answers
Part V Other Topics
Chapter 16 - Cost Collection Systems
Introduction
Data Entry Accuracy
Data Entry With Bar Codes
Data Entry With Radio Frequency Identification (Rfid)
Document Imaging
Special Considerations For Labor Tracking
The Duration Of Cost Collection
The Chart Of Accounts
Other Sources Of Cost Information
Summary
Review Questions
Review Answers
Chapter 17 - Cost Variability
Introduction
Mixed Costs
Labor-Based Fixed Costs
Costs Based On Purchase Quantities
Costs Based On Production Batch Sizing
Cost Based On Step Costs
Time-Based Costs
Experience-Based Costs
Incorporating Cost Variability Into Reports
Summary
Review Questions
Review Answers
Chapter 18 - Cost of Quality
Introduction
Types Of Quality
Costs Impacted By Quality
Reporting On The Cost Of Quality
Summary
Review Questions
Review Answers
Appendix - Selected Topics
What Is Actual Costing?
What Is An Avoidable Cost?
What Is A Burden Rate?
What Is A Committed Cost?
What Are Conversion Costs?
What Is A Deferred Cost?
What Is A Differential Cost?
What Is A Direct Cost?
What Is A Discretionary Cost?
What Is An Expired Cost?
What Is Historical Cost?
What Is An Indirect Cost?
What Is An Irrelevant Cost?
What Is Marginal Cost?
What Is Normal Costing?
What Is A Period Cost?
What Is Replacement Cost?
What Is A Step Cost?
What Is A Sunk Cost?
What Is A Traceable Cost?
Glossary
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