ACC-1B Lecture Notes - Lecture 9: European Cooperation In Science And Technology, Fixed Cost, Finished Good
Document Summary
Peer evaluation + class discussions (40 points of total 900) Financial accounting- preparing reports according to generally accepted accounting. Managerial accounting- user perspective based reports (managers) decision specific information. Government accounting- cost+pricing (makes sure we are spending tax payer"s money appropriately) We need accounting to keep track of costs and income information. We use this information to analyze and use it for decision making. Mfg: raw material inventories, working in process inventories (wip, finished goods inventories (f/g) Services: no inventories (2/3rds of u. s. workers) (1) planning- resource allocation for the future *budgeting. Product costs (mfg realated costs) (inventory costs) Period costs (non-mfg: selling and administration costs) (non inventory costs) If it is a product, then it is a direct cost (traceable & significant) Indirect are costs that are not traceable or significant. If its 5%-10% of total assets or total sales, it is significant: dm 40-50, dl <10, oh 40-60% Go over exercises 1. 5 and 1. 6 on pg.
