Presentation on theme: "Managerial Accounting Concepts and Principles"— Presentation transcript: 1 Managerial Accounting Concepts and Principles Show
2 Managerial Accounting Basics 3 Purpose of Managerial Accounting 4 Nature of Managerial Accounting 5
Types of Cost Classifications Classification by Traceability
6 Types of Cost Classifications Classification by Relevance 7 Types of Cost Classifications Classification by Relevance
8 Types of Cost Classifications Classification by Function 9 Period and Product Costs in Financial Statements
10 Steel used in the frame of a mountain bike. 11 Wages paid to a mountain bike assembly worker. 12 Factory Overhead C 3 Factory overhead consists of all manufacturing costs that are
not direct materials or direct labor and the costs cannot be separately or readily traced to finished goods. Examples: Indirect labor – maintenance Indirect material – cleaning supplies Factory utility costs Supervisory costs Factory overhead consists of all manufacturing costs that are not direct materials or direct labor. Factory overhead costs cannot be separately or readily traced to finished goods. These costs include indirect materials
and indirect labor, costs not directly traceable to the product. Overtime paid to direct laborers is also included in overhead because overtime is due to delays, interruptions, or constraints not necessarily identifiable to a specific product or batches of product. Factory overhead costs also include maintenance of the mountain bike factory, supervision of its employees, repairing manufacturing equipment, factory utilities (water, gas, electricity), production manager’s salary, factory rent,
depreciation on factory buildings and equipment, factory insurance, property taxes on factory buildings and equipment, and factory accounting and legal services. Factory overhead does not include selling and administrative expenses because they are not incurred in manufacturing products. These expenses are called period costs and are recorded as expenses on the income statement when incurred.
13 Activities and Cost Flows in Manufacturing
14 Manufacturing Statement
15 Manufacturing Statement
16 Overhead Cost Flows Across Accounting Reports 17
End of Chapter 18 End of Chapter 18. What is the main purpose of the information provided by managerial accounting?The main objective of managerial accounting is to maximize profit and minimize losses. It is concerned with the presentation of data to predict inconsistencies in finances that help managers make important decisions.
What is managerial accounting information quizlet?Managerial accounting information is intended for use by managers of the business (insiders), whereas financial accounting information is distributed to outsiders as well as to managers. These outsiders include stockbrokers, creditors, potential investors, and the general public. Tap the card to flip 👆
How frequent are managerial accounting reports prepared quizlet?Reports are usually prepared quarterly and annually. Information is verified by external auditors. You just studied 13 terms!
Which of the following is a difference between managerial accounting and financial accounting?Managerial accounting focuses on an organization's internal financial processes, while financial accounting focuses on an organization's external financial processes.
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