F2-Chapter3-吉.pptVIP

Chapter Preview 1 Total product/service costs Grouping by nature: 2 Classification by Traceability Classification by Traceability Classification by Traceability Classification by Traceability Classification by function 3 Classification by function Product Costs Product Costs Period Costs Period and Product Costs in F. S. 4 Classification by Behavior Potential Multiple Cost Classifications A typical cost card for a cost unit 6 Cost codes The advantages of a coding system --briefer, more precise, facilitates data processing A good coding system should be --easy to use, unique code, allow for expansion, flexible, etc. 7 Some improtant terminology Cost centres Cost objects Cost units Responsibility centres Quick Quiz 2.Which of the following items would be treated as an indirect cost? A Wood used to make a chair B Metal used for the legs of a chair C Fabric to cover the seat of a chair D Staples to fix the fabric to the seat of a chair Answers: 1A 2D Ji Weili, JXUFE Paper F2Management Accounting Chapter 3Cost classification By nature By traceablity Cost classfication By function Direct cost Indirect cost By behaviour Materials cost labour cost Expenses Production cost Administration cost Selling cost Distribution cost RD cost Fixed cost Variable cost Mixed cost Pool of costs Materials Labour Expenses Direct costs Costs incurred for the benefit of one specific cost object E.g. material and labor cost for a product. Indirect costs Costs incurred for the benefit of more than one cost object. E.g. maintenance expenditures benefiting two or more departments. Cost Objects: any activity for which a separate measurement of costs is desired. If the user of management information wish to know the cost of something, this something is called a C.O. It could be: a product, a service, or a department, etc. Cost Assignment Type of Cost COST OBJECT DIRECT COST Direct Materials Direct Labour INDIRECT COST Plant depreciation