Accounting Business Reporting for Decision Making

CHAPTER 11 Costing and pricing in an entity 467 to encourage the use of central resources by business units — if managers are c ...

468 Accounting: Business Reporting for Decision Making (continued) The change would affect about 10 per cent of properties in Pa ...

CHAPTER 11 Costing and pricing in an entity 469 driver (but not necessarily the underlying cost) will be burdened with a higher ...

470 Accounting: Business Reporting for Decision Making 11.4 Allocation process LEARNING OBJECTIVE 11.4 Calculate the full cost o ...

CHAPTER 11 Costing and pricing in an entity 471 Determination of full cost The identification of the indirect cost pools and rel ...

472 Accounting: Business Reporting for Decision Making Total indirect costs Indirect cost e.g. rent Indirect cost e.g. insurance ...

CHAPTER 11 Costing and pricing in an entity 473 Accounting system indirect costs Accounting system Various cost categories Finan ...

474 Accounting: Business Reporting for Decision Making (continued) Resource driver usage Departments Metres floor space m^2 Kilo ...

CHAPTER 11 Costing and pricing in an entity 475 The full cost for each department can now be calculated. As mentioned, the accou ...

476 Accounting: Business Reporting for Decision Making (continued) objects, the number and type of cost pools, and the appropria ...

CHAPTER 11 Costing and pricing in an entity 477 Department (cost pool) Allocation formula Indirect cost rate Finance $150 000/5 ...

478 Accounting: Business Reporting for Decision Making VALUE TO BUSINESS • Cost information assists entities in price setting, ...

CHAPTER 11 Costing and pricing in an entity 479 Process Indirect manufacturing costs Direct material costs Inventoriable product ...

480 Accounting: Business Reporting for Decision Making Illustrative examples 11.3 and 11.4 demonstrate the use of both costing s ...

CHAPTER 11 Costing and pricing in an entity 481 Indirect costs are allocated on a departmental basis. Actual costs and relevant ...

482 Accounting: Business Reporting for Decision Making (continued) For products passing through Department A, indirect costs wil ...

CHAPTER 11 Costing and pricing in an entity 483 the costing system design is not appropriate for the entity. The current design ...

484 Accounting: Business Reporting for Decision Making a competitor or decide not to purchase at all. There are two common metho ...

CHAPTER 11 Costing and pricing in an entity 485 REALITY CHECK Taxi fees set to fall after ACCC action against Cabcharge Taxi car ...

486 Accounting: Business Reporting for Decision Making Summary of learning objectives 11.1 Define a cost object and explain how ...