Managerial Accounting For Dummies

Part II

Understanding and Managing Costs

In this part . . .

In Part II, I discuss everything you need to know about costs. I start by defining different kinds of costs, including the costs needed to make products, costs not needed to make products, costs that affect decision-making, and costs that don’t affect decision-making. Then I explain how to compute cost of goods manufactured and cost of goods sold. You also find out how to distinguish variable costs from fixed costs and get a taste for overhead allocation techniques. Finally, I describe how to apply these techniques to job order and process costing.