ACC 406 Lecture Notes - Lecture 5: Management Accounting, Finished Good, Fixed Cost

• School: Ryerson University
• Department: Accounting
• Course: ACC 406
• Professor: Ingrid L.Stefanovic

Document Summary

Information is for internal managers to make good decisions. Test #1 will cover chapter 1 to 4. 3 inventory accounts: raw materials, work in progress (wip, finished goods. 3 cost components: direct materials, direct labour, overhead. Can be represented by the cost of goods manufacturing statement: Direct materials used=dm available for use end . Total manufacturing cost process=total manufacturing cost added+beg . wip inv entory. Cogm =total manufacturing cost process end . work process inventory o o o o o. Can be represented by the cost of goods sold statement (same thing as cost of goods sold section on the income statement) Cost of goods available for sale = cogm + beg. Cogs = cost of goods available for sale end finished goods. Actual cost historical cost (what actually happened) Acc406 anthony chan o o o o. Variable the total cost change in response to change in volume.