Scribd Logo
Fazer o upload

Bem-vindo(a) ao Scribd!

  • Tute 3 Homework - Cost Terms, Concepts and Classifications

    Enviado por

    Kyle
    12 visualizações3 páginas
    The document discusses different types of costs including fixed costs, variable costs, and period costs. It provides examples of each cost type for Commonwealth Bank including fixed costs like rent and wages, and variable costs like interest paid and materials. It also defines level of activity as the work performed like units produced. The document then lists examples of different costs classified by behavior, traceability, and timing as either product costs, period costs, or manufacturing vs non-manufacturing costs. It concludes with examples of how direct materials and depreciation as fixed and variable costs would be treated in calculations of cost of goods manufactured.

    Descrição original:

    Answers

    Título original

    Langfield-Smith7e IRM Ch3

    Direitos autorais

    © © All Rights Reserved

    Formatos disponíveis

    DOCX, PDF, TXT ou leia online no Scribd

    Você considera este documento útil?

    Este conteúdo é inapropriado?

    Denunciar este documento
    The document discusses different types of costs including fixed costs, variable costs, and period costs. It provides examples of each cost type for Commonwealth Bank including fixed costs like rent and wages, and variable costs like interest paid and materials. It also defines level of activity as the work performed like units produced. The document then lists examples of different costs classified by behavior, traceability, and timing as either product costs, period costs, or manufacturing vs non-manufacturing costs. It concludes with examples of how direct materials and depreciation as fixed and variable costs would be treated in calculations of cost of goods manufactured.

    Direitos autorais:

    © All Rights Reserved
    Baixe no formato DOCX, PDF, TXT ou leia online no Scribd
    Sinalizar o conteúdo como inadequado
    12 visualizações3 páginas

    Tute 3 Homework - Cost Terms, Concepts and Classifications

    Enviado por

    Kyle
    The document discusses different types of costs including fixed costs, variable costs, and period costs. It provides examples of each cost type for Commonwealth Bank including fixed costs like rent and wages, and variable costs like interest paid and materials. It also defines level of activity as the work performed like units produced. The document then lists examples of different costs classified by behavior, traceability, and timing as either product costs, period costs, or manufacturing vs non-manufacturing costs. It concludes with examples of how direct materials and depreciation as fixed and variable costs would be treated in calculations of cost of goods manufactured.

    Direitos autorais:

    © All Rights Reserved
    Baixe no formato DOCX, PDF, TXT ou leia online no Scribd
    Sinalizar o conteúdo como inadequado
    de 3

    Tute 3 Homework – Cost Terms, Concepts and

    Classifications
    2.5

    Different costs for different purposes refer to classifying costs based on how
    managers are going to be using the information. The same cost can be classified in
    different ways depending on the intended use of the cost information (i.e. behaviour,
    traceability, controllability, value chain, manufacturing, timing)

    2.6

    Fixed Costs remain unchanged in total despite changes in the level of activity, while
    Variable Costs change in direct proportion to a change in the level of activity. For
    Commonwealth Bank, fixed costs would include the rent paid for its different
    branches, employee wages, equipment depreciation. Variable Costs would include
    interest paid to customers, raw materials, telephone and banking costs.

    2.7

    Level of Activity refers to the level of work performed in the organisation, such as
    units produced, kilometres driven, or hours worked.

    2.22

    1. Advertising costs: period cost, fixed, non-manufacturing cost


    2. Straight-line depreciation: product cost, fixed, manufacturing over-head
    3. Wages of assembly line workers: product cost, variable (hourly basis), direct
    labour
    4. Delivery costs on customer shipments: period cost, variable, non-
    manufacturing cost
    5. Newsprint consumed: product cost, variable, manufacturing cost (direct
    material)
    6. Plant insurance: product cost, fixed, manufacturing cost (manufacturing over-
    head)
    7. Glass costs: product cost, variable, direct material
    8. Tyre costs: product cost, variable, manufacturing cost (direct material)
    9. Sales commissions: period cost, variable, non-manufacturing cost
    10. Wood glue: product cost, variable, manufacturing cost (either direct material
    or manufacturing over-head (i.e., indirect material) depending on how
    significant the cost is)
    11. Wages of security guards: product cost (securing the factory), variable,
    (manufacturing cost) manufacturing over-head
    12. Salary of financial vice president: period cost, fixed, non-manufacturing cost

    Product Cost = Manufacturing Cost, for calc. purposes

    2.39
    2.40

    1. $48,000, as there was no work in process inventory at the beginning of the


    period
    2. Direct Materials would increase by about 20% if production increase by 20%
    as it is a variable cost. (Direct cost > only variable, MOH > fixed or variable)
    3. Depreciation cost would remain the same even if production increased as it is
    a fixed cost.
    4. If half of the depreciation cost was related to factory machinery and the other
    half was related to selling and administrative equipment, Only the $36 000 of
    equipment depreciation would have been included in manufacturing over-
    head on the schedule of cost of goods manufactured. The $36 000 of
    depreciation related to selling and administrative equipment would have been
    treated as a period cost and expensed during the year

    Você também pode gostar