Module 46: Cost Measurement and Assignment
Overview
A primary purpose of cost measurement is to allocate the costs of production (direct materials, direct manufacturing labor, and manufacturing overhead) to the units produced. It also provides important information for management decisions, such as product pricing decisions. Cost measurement is achieved through a costing system (job-order, process, activity-based) as described in this module. Before you begin the reading, you should review the key terms at the end of the module.
A. Cost of Goods Manufactured
B. Cost Flows
C. Job-Order Costing
D. Accounting for Overhead
E. Disposition of Under- and Overapplied Overhead
F. Service Department Cost Allocation
G. Process Costing
H. Hybrid-Costing System
I. Backflush Costing
J. Activity-Based Costing
K. Joint Products
L. By-Products
M. Estimating Cost Functions
N. Variable (Direct) and Absorption (Full) Costing
Key Terms
Multiple-Choice Questions
Multiple-Choice Answers and Explanations
Written Communication Task
Written Communication Task Solution
A. Cost of Goods Manufactured
BWIP + DM + DML + MOH − EWIP = CGM ...
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