August 2011
Beginner to intermediate
750 pages
26h 1m
English
Content preview from Managerial: Accounting
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7
ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT
After studying this chapter, you should be able to meet the following learning objectives (LO).
- Classify activities as unit-level, batch-level, product-level, customer-level, or organization-level. (Unit 7.1)
- Calculate activity-based product costs. (Unit 7.2)
- Explain the difference between traditional product costs and activity-based product costs. (Unit 7.2)
- Distinguish between value-added and non-value-added activities. (Unit 7.3)
- Explain how information about activities can be used to make decisions. (Unit 7.3)
The Pitch
It was early in 2012, and C&C Sports' managers were reeling from the recently released operating results for 2011. Selling more award jackets than budgeted should have increased C&C's operating income, but that hadn't happened. Instead, costs had skyrocketed (see Chapter 6). Direct material and direct labor costs were part of the problem, but other production costs had come in much higher than expected.
George Douglas, CEO, called a meeting of upper management to discuss the unexpected results. “We've never missed budgeted income by this much,” said Douglas. “I am more convinced than ever that we don't understand what it costs to make our products,” CFO Claire Elliot replied. “You're right,” Penny Townsley, ...
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I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.