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BUSA 12 Fund. Of Acct. IIChapter 14

Debra L. Schmidt, CAIntr! t! "ana#eria$ Acct

And%!b Order C!&tin#

'!a$& !f Chapter 14Under&tand the difference& bet(een financia$

and mana#eria$ acc!untin#Be ab$e t! under&tand and c$a&&if) different

t)pe& !f c!&t&Under&tand the &imi$aritie& and difference& bet(een

%!b OrdC!mpari&!n !f Financia$ *"ana#eria$ Acc!untin#

Managerial AccountingDe&i#ned f!r Interna$ U&er& th!&e in&ide the

c!mpan)U&e& much m!re &ub+ectie data m!re

f!cu&ed !n the future than !n the pa&trepared acc!rdin# t! (hat mnmt need&

"uch m!re f$e-ib$e

repared a& needed

er and r!ce&& C!&tin#Be ab$e t! trac c!&t& fr!m &tart t! fini&h in the

manufacturin# pr!ce&& u&in# +!b !rder c!&tin# /0acc!unt& and %3&

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Under&tand ba&ic financia$ &tatement& f!r a

manufacturer

C!mpari&!n !f Financia$ *"ana#eria$ Acc!untin#Financial AccountingDe&i#ned f!r -terna$ U&er& th!&e !ut&ide the

c!mpan)5ep!rtin# !f hi&t!rica$ data th!&e

tran&acti!n& that hae a$read) happenedOb+ectie and #!erned b) 'AA

6er) &trict and ri#id ru$e& and re7uirement&repared peri!dica$$) a& &pecified

0he "ana#ement r!ce&&"ana#eria$ Acc!untin# c!me& int! p$a)

thr!u#h!ut the "ana#ement r!ce&&$annin#

Directin#C!ntr!$$in#

Impr!in#

C!&t& 8hat are the)A c!&t i& a pa)ment !f ca&h /!r e7ui. f!r the purp!&e!f #eneratin# reenue&. A$$ e-pen&e& are c!&t&, butn!t a$$ c!&t& are e-pen&e&-pen&e

0he benefit i& receied immediate$).

A&&et

0he benefit ha& &!me a$ue in the future

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C$a&&if)in# C!&t&Product Costs

An) c!&t that i& in!$ed in the manufacturin#

pr!ce&& !f the #!!d&r!duct c!&t& f$!( thr!u#h ba$ance &heet acc!unt&

unti$ the pr!duct i& &!$dPeriod Costs

C!&t& n!t re$ated t! the manufacturin# pr!ce&&

Se$$in# and Admin. -pen&e&

9! future a$ue

An e-pen&e !f the peri!d

"anufacturin# r!duct C!&t&A$$ "anufacturin# C!&t& can be diided int!

!ne !f three pr!duct c!&t cate#!rie&Direct "ateria$&

Direct Lab!r

Fact!r) Oerhead

Direct "ateria$&5a( materia$& that can be direct$) traced t!

the pr!duct&0he) mae up a &i#nificant p!rti!n !f the c!&t

C!&t& !f "ateria$& #!e& int! a Direct "ateria$&

Acc!unt /debitD" c!&t& #! !ut t! 8I

Indirect materia$& #et char#ed t! FO:

Direct Lab!r

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DL i& a pr!duct c!&t

Inc$ude& the (a#e& !f th!&e ;t!uch $ab!rer&