AFM102 Lecture Notes - Lecture 11: Cost Driver, Multiple Choice

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM102
• Professor: Jie Joyce Tian

Document Summary

5 short-answer questions: abc, traditional method, absorption vs variable costing, chapter 2 - cost flows from r/m - wip - fg, chapter 4 - cvp - break-even, targeted sales, budgeting. Budget: a detailed quantitative plan for acquiring and using financial and other resources over a specified future period of time. Planning: developing objectives and preparing budgets to achieve those objectives. Control: taking steps to ensure the objectives are attained. Compare budgets with actuals, take corrective action. Motivating: budgets provide goals that can motivate employee effort. Shows the number of units that must be produced to meet sales demand and desired ending inventory. Shows the amount of raw material needed to meet desired production (production budget) and inventory levels. Figure out how much material you need to produce x number of units. Raw materials: beginning balance + amount needed to purchase - dm used = ending balance. 3 units of dm for each fg.