《加里管理会计（英文版）》教学课件ch01.pptxVIP

Managerial Accounting and Cost ConceptsChapter 1Needs of ManagementFinancial accounting is concerned with reporting financial information to external parties, such as stockholders, creditors, and regulators.Managerial accounting is concerned with providing information to managers within an organization so that they can formulate plans, control operations, and make decisions.Purposes of Cost ClassificationAssigning costs to cost objectsAccounting for costs in manufacturing companiesPreparing financial statementsPredicting cost behavior in response to changes in activityMaking decisionsLearning Objective 1Understand cost classifications used for assigning costs to cost objects: direct costs and indirect costs. Assigning Costs to Cost ObjectsIndirect costsCosts that cannot be easily and conveniently traced to a unit of product or other cost object. Example: manufacturing overheadDirect costsCosts that can beeasily and conveniently traced to a unit of product or other cost object.Examples: direct material and direct laborCommon costsIndirect costs incurred to support a number of cost objects. These costs cannot be traced to any individual cost object.Learning Objective 2Identify and give examples of each of the three basic manufacturing cost categories.Classifications of Manufacturing CostsDirectMaterialsDirectLaborManufacturingOverheadDirect Materials Direct materials are raw materials that become an integral part of the product and that can be conveniently traced directly to it.Example: A radio installed in an automobileDirect LaborDirect labor costs are those labor costs that can be easily traced to individual units of product.Example: Wages paid to automobile assembly workersManufacturing OverheadManufacturing overhead includes all manufacturing costs except direct material and direct labor. These costs cannot be readily traced to finished products.Includes indirect materials that cannot be easily or conveniently traced to specific units of product. Includes indi