BUSS1030 Lecture Notes - Lecture 11: Cost Accounting, Indirect Costs, Income Statement

• School: University of Sydney
• Department: Business
• Course: BUSS1030
• Professor: Abdul Razeed

Document Summary

Explain the nature of full costing, and the reasons why this information is useful to. Cost accounting: involves measuring, recording and reporting costs of any cost object (e. g. product, service, department, customer, employee etc) Why calculate cost: to value inventory (balance sheet, to determine cost of goods sold (income statement, for contractual purposes, for management decision making (e. g. product pricing, to motivate employees. Deduce the full cost of a unit of output in a single or multi-product (or service) Environment, differentiate between direct and indirect costs, and discuss the problem. Of charging overheads to jobs in a multi-product (multi-service) environment. Example: rustic breweries ltd has just 1 product, a bitter beer marketed as old rustic, and last month the company produced 40,000 l of it. Indirect costs (or overheads): all costs except direct costs; that is, those which cannot be directly measured in respect of each particular unit of output: e. g. rent of premises.