Kế toán, kiểm toán - Chapter ten: An introduction to management accounting

Chapter TenAn Introduction to Management Accounting© 2015 McGraw-Hill Education.Type of User versus Type of Information 10-2 10-3Components of Product CostMaterialsLaborOverhead 10-4Average Cost per UnitTotal CostNumber of Units= Average Cost per Unit= $250$1,0004For example, Average Cost Per Unit 10-5 10-6Labor Costs 10-7Overhead Costs 10-8Total Product Cost 10-9Overhead Costs: A Closer LookIndirect CostsDepreciationSupervisor’s SalaryUtilities 10-10 Manufacturing Product Cost SummaryDirectMaterialsDirectLaborManufacturingOverheadRaw materialcosts that canbe easily tracedto products.Factory wagesthat can be easily traced to products.Other factory costs such as indirect materials and labor, utilities, rent, security,and depreciation. 10-11The Flow of Manufacturing Costs Through the Accounting Records Balance Sheet Income Statement 10-12Schedule of Cost of Goods ManufacturedAppears on Income Statement The Schedule of Cost of Goods Manufactured summarizes product cost information for manager analyses. 10-13Inventory Holding CostsObviousHiddenFinancing and Warehouse SpaceSupervisionTheft, damage, obsolescenceIncreased Production TimeSloppy workDecreased Motivation 10-14Just-in-Time Inventory JITEnablesReduction or Elimination of Non-value AddedActivitiesAvoidance of Lost Opportunities 10-15Ethical ConsiderationsCertified Management Accountants are guided by the IMA Statement of Ethical Professional PracticeThe statement provides standards onCompetenceConfidentialityIntegrityCredibilityResolution of ethical conflict 10-16Benchmarking: Identifying Best Practices of Global CompetitorsTotal Quality Management (TQM)Activity-Based Management (ABM)Zero defects and Customer Satisfaction through Continuous ImprovementAssessment of the Value Chain to create or refine value-added activities and eliminate or reduce non-value-added activities.Extends value chain analysis to all suppliers of a company, as well as servicers of the company’s products. Comprehensive Value Chain Analysis 10-17End of Chapter Ten 10-18