Management AccountingIntroduction Key Terms and Job 管理会计的概述，关键术语和工作.docVIP

PAGE PAGE 3 MANAGEMENT ACCOUNTING ? Management Accounting v. Financial Accounting - Internal focus v. External focus - Managers v. Investors and regulators - Future oriented v. Past oriented - Little restrictions v. GAAP - Financial and non-financial v. financial ? What is cost ? - Resources foregone to achieve a certain objective (usually profits, but relevant for not-for-profits too, when service level becomes imp.) ? Costs are incurred along the “Value Chain” ? Value chain is a set of activities starting with RD and going all the way to post-sales customer service - focus on the customer ? RD, Design, Production (or Purchases for merchandising firms), Marketing, Distribution, Customer service ? Product costs are those costs associated with production or purchases only - also called “inventoriable” costs - they are expensed only if finished goods inventory is sold (matching) ? Manufacturing firms’ product costs (with eg.) Direct materials consumed - rubber and steel for a tire mfg. - plastics for a plastics mfg. Direct labor cost - wages and benefits of workers directly involved in the production Indirect Manufacturing costs (or manufacturing overheads or factory overheads) - Salaries of factory supervisory personnel - Depreciation on factory equipment - property taxes on factory premises - factory lighting, machine power consumption ? Merchandising product costs - only the cost of purchasing inventory from suppliers ? Costs that are not “product costs” become “period costs” - they are expensed without regard to finished goods being sold ? Product cost computation (an example) Direct Material Beg. Inventory $100 Add Direct Material Purchases 500 Direct material available $600 Less Direct Material End. Inventory 300 Direct Material Consumed