Product Cost Allocation - Traditional and Modern Procedures

Zaliczenie

The lecture is designed to present product costing concepts and procedures, both traditional (e.g. process costing, job order costing) and modern, based on Activity-Based Costing. This study of product costing is designed for student who have basic knowledge of accounting principles, i.e. for all of you, Ladies and Gentlemen:-). Furthermore, the lecture is an extension of Managerial Accounting lecture scheduled for the 4th semester. The first and the most important element of the assessment procedure is students’ attendance. The next element is short final test (about 10 questions or one cost calculation). Additional explanations/comments in Polish will be delivered if necessary.

1. Cost Terms and Classification.

2. Process Costing - Weighted Average and FIFO methods.

3. Job Order Costing.

4. Activity-Based Costing (steps in, cost driver, calculation, comparison of ABC and traditional absorption costing).

5. Target Costing (aim and use, steps in, application to service industries).

6. Life-Cycle Costing (stages of product life cycle, costs involved, benefits, relevance to service industries).

1. Rayburn L.G., Cost Accounting. Using a Cost Management Approach, Irwin, 1993.

2. Garrison R.H., Managerial accounting, 6th edition, Irwin, 1991.

3. C.T. Horngren, S.M Datar, G. Foster, Cost Accounting. A Managerial Emphasis, Pearson Prentice Hall, 2006.