Chapter 1 Advanced costing method
Chapter learning objectives
Upon completion of this chapter you will be able to:
§ explain what is meant by the term cost driver
§ identify appropriate cost drivers under activity-based costing (ABC)
§ calculate costs per driver and per unit using (ABC)
§ compare ABC and traditional methods of overhead absorption based on production units, labour hours or machine hours.
§ explain the implications of switching to ABC on pricing, performance management and decision making.
§ explain what is meant by the term ‘target cost’ in both manufacturing and service industries.
§ derive a target cost in both manufacturing and service industries.
§ explain the difficulties of using target costing in service industries
§ explain the implications of using target costing on pricing, cost control and performance management.
§ describe the target cost gap.
§ suggest how a target cost gap might be closed.中华考试网
§ explain what is meant by the term ‘life-cycle costing’ in a manufacturing industry
§ identify the costs involved at different stages of the life-cycle.
§ explain the implications of life-cycle costing on pricing, performance management and decision making.
§ describe the process of back-flush accounting and contrast with traditional process accounting.
§ explain, for a manufacturing business, the implications of back-flush accounting on performance management
§ evaluate the decision to switch to back-flush accounting from traditional process control for a manufacturing business.
§ explain throughput accounting and the throughput accounting ratio (TPAR), and calculate and interpret, a TPAR.
§ suggest how a TPAR could be improved. |
发表于 2012-2-23 17:09:42
