You're about to create your best presentation ever

Get started with Prezi

Cost Accounting Powerpoint Templates

Create your presentation by reusing a template from our community or transition your PowerPoint deck into a visually compelling Prezi presentation.

Cost Accounting

Transcript: Cost Accounting Costs and Cost Terminology 10. Cost of Goods Sold (COGS) 7. Indirect Costs (Overheads) Formula: COGS = Opening Inventory + Purchases - Closing Inventory Examples: Utilities, administrative salaries, maintenance 11. Economies of Scale 8. Opportunity Cost The reduction in per-unit cost as production increases Example: Choosing to invest in machinery instead of expanding marketing. 12. Break-even Point 9. Sunk Cost Example: Money spent on research that is no longer useful. Formula: Break-even Point = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) Costs and Cost Terminology 1. Fixed Costs 4. Marginal Cost Examples: Rent, salaries, insurance. Formula: Marginal Cost = Change in Total Cost / Change in Quantity 2. Variable Costs 5. Average Costs Examples: Raw materials, direct labor, shipping costs. Formula: Average Cost = Total Costs / Quantity Produced 3. Total Costs 6. Directs Costs Formula: Total Costs = Fixed Costs + Variable Costs Examples: Raw materials, direct labor. Costs and Cost Terminology Costs represent the monetary value of resources used in production, essential for decision-making and financial planning. Understanding Costs and Their Management Presented By Introduction Key Objectives of Cost Accounting: Summary of key Differences Period Costs Inventoriable Costs Aspect Definition Costs tied to the production or purchase of goods Costs not related to production, expensed as incurred Cost Accounting records, classifies, analyzes, and allocates costs to help management make informed financial decisions, focusing on internal use rather than external stakeholders. Expensed when inventory is sold (as COGS) Timing of Expense Expensed in the period they are incurred Location Recorded directly on the income statement Initially recorded as inventory on the balance sheet Direct materials, direct labor, manufacturing overhead Office rent, administrative salaries, advertising Examples Cost Control Cost Allocation Cost Analysis Profitability Determination Decision Support Characteristics: Understanding Period Costs Expensed when incurred, regardless of sales. Not related to manufacturing or production. Associated with administration, selling, marketing. Period costs are expensed in the period incurred, not included in inventory, and recorded on the income statement. Implications for Financial Reporting By distinguishing between these two types of costs, businesses can better manage their financial reporting, cost control, and pricing strategies. Characteristics Inventoriable Costs and Period Costs What are Inventoriable Costs? Included in COGS when sold. Directly linked to production or purchase. Associated with manufacturing or production. Inventoriable costs relate to production and are included in inventory, while period costs are expensed when incurred. Components of Inventorable Costs Inventoriable costs, or product costs, are recorded as inventory and expensed when the product is sold. Key points cost accounting: Job Costing Process Costing Activity-Based Costing (ABC) Standard Costing Sandra Caceres Carmona Rose Pamela Perez Raquela Alizon Quenta Aranda Ruben Hugo Quisbert Gutierrez Fernando Quisberth Mallea Leticia Lizeth Quispe Ancalle Teacher: Lic. Linnet Coral Herrera Zurita Year: 2024 Together, these frameworks allow businesses to manage their expenses effectively, ensure cost efficiency, and support strategic decision-making. What Are Direct Costs? Direct and Indirect Costs Conclusions Direct costs are expenses directly traceable to a product, service, or project, linked to production or delivery. Framework for Cost Management and Cost Accounting Summary of key Differences Direct and indirect costs categorize expenses, aiding in accurate costing, pricing, and profitability analysis. Direct Costs A) Cost Management Framework Direct Costs Indirect Costs Aspect Implement Enterprise Resource Planning (ERP) systems or cost accounting software to automate cost tracking, allocation, and reporting. Leverage data analytics for enhanced cost forecasting, performance measurement, and identifying cost-saving opportunities. Attribution Easily traced to a specific product/project Not directly tied to a especific product/project Framework for Cost Management and Cost Accounting B) Cost Accounting Framework Rent, utilities, administrative salaries Examples Raw materials, direct labor Often fixed or semi-varible Behavior Varies with production Direct costs are crucial for calculating the cost of goods sold (COGS) or the cost of services rendered, allowing for accurate pricing and profit margin determination. C) Integrated Cost Management and Cost Accounting Calculation Part of COGS or project-specific costing Allocated across multiple products/projects 3. Use of Technology Indirect Costs Understanding Indirect Costs Cost Management Framework Indirect costs are necessary for the overall function of a company, and though they cannot be traced to a single product or service, they must

Cost Accounting

Transcript: Describe your Company Selling the famous Spanish Wine to Asia. (China,Singapore and India) Our job : delivering the wine to our customer. Direct cost: Total cost:3320 $per month Labor cost(3 Delivery mans each country) $15 Each time for 8hours 3*15*8*30=10800$ Import:Transportation 50$ cost of goods:Spanish red wine 500$ white wine $500 Indirect cost: Telephone fee $50 Web Cost $20 per month 20$ Select Allocation base: Labor hours. Budget indirect costs rate=50*12/3 =200 Wine Trading Cost Accounting Price of Our product So,For wholesale company,we require that the sale of wine 200bottles at least Each bottle of wine: 2euro For individual costumer,Require that 20 bottles at least Each bottle of wine: 3.5 euro We consider whether sell it to wholesale company or individual customer!? the Job costing System

Cost accounting

Transcript: Car and truck emissions - The most common source of water pollution is runoff from city streets, parking lots, marinas, construction sites, logging sites and roadway (Elsa Brenner, New York Times journalist) - 1.2 million underground fuel storage tanks have been closed and out of these 317 000 tanks had "confirmed leaks" - 1/4 of motor oil can contaminate 1 million gallons of fresh water - 13.4% of used motor oil is illegally dumped; 10.1% is landfilled The production process Conclusion by Diana Solis & Lorane Beau Introduction Environmental costs of automobiles Cost Accounting - Vehicle companies have been aware of the impact the industry is having on the environment (Ralph Nader, "Unsafe at Any speed") - Vehicles still emit 51% of carbon monoxide, 34% of oxides of nitrogen and 34% of Volatile Organic Compounds - Vehicles are responsible for 33% of carbon dioxide emissions: this is the primary contributor of global warming The air pollution - Vehicles have become a necessity, no longer a luxury - Everyone is aware of the following costs: tune ups, oil changes, fluid top-offs, gasoline - The environmental costs of automobiles have been accumulating for centuries - The major environmental costs are: air and water pollution - Environmental costs of autmobiles are extensive - The major unaccounted costs of automobiles are air and water pollution - These emissions affect our environment (global warming) and our health (respiratory problems) - The average person is cognizant about the economic cost of automobile but rarely think about the implacations to our environment The water contamination Thank you for your attention! - 1/3 of the total environment impact occurs before the car is finished - 1 car produces 29 tons of waste and 1 207 millions cubic yards of polluted air - Impact due to the extraction process of lead, iron, petroleum and other raw materials to construct pieces necessary to the production process

Cost Accounting

Transcript: Overhead, those items not directly associated with the product but cost are still incurred. Utilities, Rent, HR cost, Depreciation. Standard Cost Cost Accounting Cost accounting is a way to measure, record, and report cost and other non financial information for cost objects. Cost objects can be anything you want to determine cost for such as product lines or territories System used generally for continuous production. The cost are allocated during a specific period. The cost are then divided by the number of units produced. Cost Pools Cost Systems 2 types of systems Direct and Nondirect Direct cost are related to the product such as materials and labor Indirect cost are those not directly assoaciated with product such as utilities and management wages Indirect Cost Job Order Cost System Allocates the cost per job by a identifier. This system allows each job to be costed individually. In this system each cost must be assigned to a specific job or batch. Estimates of what the product should cost. Any work in process is charged to a variance account. Standard cost is easier and more cost effective in mass manufacturing Process Cost Systems Indirect cost that have cause and effect relationship with the cost object based on the cost allocation.

Cost accounting

Transcript: Financial- Our start up costs are very low so during the introductory phase of our business our main financial concern will be survival. Social sustainability: Our business will encourage interpersonal relationships between employees and both customers (students) and suppliers(Universities) Organisational survival – Our operating system will underline some of the values of our company, which include, efficiency, professional growth, convenience and quality Structural sustainability: Our company focuses on learning and continuous improvement, and the development of new services. Cultural Sustainability – Within our company we want to build a sense of community and cohesion between employees. Community sustainability : We aim to create a community of students who value our product and consider it the standard format of application Societal – Since we are targeting students, the future generation; we aim to transmit values such as social justice, global rights....

cost accounting

Transcript: sales 3,600 less: selling and administrative 300 additional costs 800 1,100 net realizable value of by product 2,500 total production cost of main product 150,000 less: net realizable value of by-product 2,500 Expected value of by product 147,500 x Sales 200,000 less: cost of goods sold 0 direct materials 0 direct labor 0 factory overhead 0 total manufacturing cost 150,000 less: inventory-jan. 31 30,000 120,000 gross profit 80,000 less: selling and administrative 60,000 net operating income 20,000 add: revenue from by-product 1,600 net income 21,600 25,000 how to solve for inventory? By-Product Main Product total manufacturing cost problem 11 pg.378 requirement C - Reversal Cost Method net income by-product treated as deduction from the cost of goods sold sales 2,700 less: add'l processing cost 800 selling & administrative 300 1,100 net revenue of by product 1,600 net by-product income treated as other income requirement C - net realizable value inventory-jan.31 = sales 250,000 less:marketing and administrative 60,000 total share in joint cost 190,000 Product: SUGARCANE main product and by-product 150,000 sales 200,000 less: cost of goods sold 0 direct materials 0 direct labor 0 factory overhead 0 total manufacturing cost 150,000 less: inventory-jan. 31 30,000 cost of goods sold 120,000 less: revenue from by-product 1,600 118,400 gross profit 81,600 less: selling and administrative 60,000 net income 21,600 = = x Blackberry Company by-product sales Units produced sales 3,600 less: marketing and administrative 300 additional cost 800 expected gross profit 1,080 2,180 total share in joint cost 1,420 30,000 5,000

COST ACCOUNTING

Transcript: By: Laura Sofia Ruiz Gonzalez Leidy Johana Palacios Ospina Cost accounting systems ACCOUNTING COST ACCOUNTING COSTS BRANCH OF MANAGEMENT ACCOUNTING WHICH IS RELATED TO THE ACCUMULATION AND THE ANALYSIS OF COST INFORMATION FOR INTERNAL USE IN THE VALUATION OF INVENTORIES. PLANNING, CONTROL AND DECISION MAKING SYNTHESIZES AND REGISTER THE COSTS OF A COMPANY SO THAT THEY CAN BE ME ASURED AND CONTROL. THE RESULTS OF EACH ONE OF THEM THROUGH THE OBTAINING OF TOTAL AND UNIT COSTS. MANAGEMENT ACCOUNTING MANAGEMENT ACCOUNTING Is the information system designed to meet the internal needs of the company. Facilitates decision making and measurement of actions of the elements of the organization in relation to the plans and budgets established by it. HISTORY OF COST The emergence of cost accounting can be found before the Industrial Revolution. This cost system was used by some European industries between the years 1485 and 1509. In 1778, auxiliary books began to be used in all the items related to the cost of the products, such as wages, work materials and delivery dates. HISTORY OF COST DEVELOPMENT Approximately between the years 1890 and 1915, cost accounting managed to consolidate an important development, since it designed its basic structure, integrated the cost records into the accounts in countries such as England and the United States, and opted concepts such as: establishments of procedures for the distribution of indirect manufacturing costs, adaptation of reports and records for internal and external users, valuation of inventories, and estimation of costs of materials and labor. ACCOUNTING AS A TOOL The accounting began to be understood as a planning and control tool, which demanded the need to create new ways to anticipate the simple historical economic facts. Some reasons that show it are: The development of the railways. The value of the fixed assets used by the companies that made appear the need to control the indirect costs. The size and complexity of companies in addition to the difficulties administrative problems they faced. The need to have a reliable tool that allowed them to set sale prices. CLASSIFICATION OF COST CLASSIFICATION OF COST ACCORDING TO THE AREA WHERE THEY ARE CONSUMEN PRODUCTION COSTS DISTRIBUTION COSTS ADMINISTRATION COSTS FINANCING COSTS ACCORDING TO YOUR IDENTIFICATION DIRECT INDIRECT ACCORDING TO THE MOMENT IN WHICH IT IS CALCULATED HISTORICAL PREDETERMINED ACCORDING TO THE MOMENT IN WHICH THE RESULTS ARE REFLECTED PERIOD COSTS PRODUCT COSTS ACCORDING TO THE CONTROL YOU HAVE OVER YOUR CONSUMED CONTROLLABLE COSTS UNCONTROLLABLE COSTS ACCORDING TO THE TYPE OF PAYMENT IN WHICH IT INCURS DISBURSABLE COSTS OPORTUNITY COSTS ACCORDING TO YOUR BEHAVIOR FIXED COSTS VARIABLE COSTS SEMI-VARIABLE COSTS MIXED COSTS STAGGERED Cost accounting system: JOB ORDER COSTING IS A COST ACCOUNTING SYSTEM THAT ACCUMULATES MANUFACTURING COSTS SEPARATELY FOR EACH JOB. IT IS APPROPRIATE FOR FIRMS THAT ARE ENGAGED IN PRODUCTION OF UNIQUE PRODUCTS AND SPECIAL ORDERS. FOR EXAMPLE, IT IS THE COSTING ACCOUNTING SYSTEM MOST APPROPRIATE FOR AN EVENT MANAGEMENT COMPANY, A FURNITURE PRODUCER, A PRODUCER OF VERY HIGH COST AIR SURVEILLANCE SYSTEM, ETC. FEATURES OF JOB COSTING A) IT IS A SPECIFIC ORDER COSTING. B) THE JOB IS CARRIED OUT OR A PRODUCT IS PRODUCED TO MEET THE SPECIFIC REQUIREMENTS OF THE ORDER. IT MAY BE RELATED TO SINGLE UNIT OR A BATCH OF SIMILAR UNITS. C) IT IS CONCERNED WITH THE COST OF AN INDIVIDUAL JOB OR BATCH REGARDLESS OF THE TIME TAKEN TO PRODUCE IT, BUT NORMALLY SHORT DURATION JOBS. D) COSTS ARE COLLECTED TO EACH JOB AT THE END OF ITS COMPLETION. THE END OF THE ACCOUNTING PERIOD. E) THE COSTS OF EACH JOB ARE ASCERTAINED BY ADDING MATERIALS, LABOR AND OVERHEADS. F) ONLY PRIME COST ELEMENTS ARE TRACEABLE, AND THE OVERHEADS ARE APPORTIONED TO EACH JOB ON SOME APPROPRIATE BASIS AND SOMETIMES IT IS DIFFICULT TO SELECT A SUITABLE METHOD OF ABSORPTION OF OVERHEADS TO INDIVIDUAL JOBS. G) STANDARDIZATION OF CONTROLS IS COMPARATIVELY DIFFICULT AS EACH JOB DIFFERS, AND MORE DETAILED SUPERVISION AND CONTROL IS NECESSARY. H) WORK-IN-PROGRESS MAY OR MAY NOT EXIST AT THE END OF THE ACCOUNTING PERIOD. * JOB ORDER COSTING OFFERS A DETAILED ANALYSIS OF THE COSTS OF MATERIALS, LABOR COST AND OVERHEADS BY FUNCTIONS AND NATURE. * JOB ORDER COSTING MAKES IT POSSIBLE TO APPRAISE THE PROFITABILITY OF A JOB. * JOB ORDER COSTING FACILITATES THE ESTIMATION OF THE COST OF A SIMILAR JOB. * JOB ORDER COSTING ALLOCATES OVERHEADS ON THE BASIS OF A PREDETERMINED RATE. * JOB ORDER COSTING MAKES EASY TO IDENTIFY SPOILAGE AND DEFECTS TO TAKE CORRECTIVE ACTIONS. * JOB ORDER COSTING EVALUATES EFFICIENCY OF DIFFERENT TYPES OF JOBS WITH COST RECORDS BY USING STATISTICAL TECHNIQUES. ADVANTAGES OF JOB ORDER COSTING * JOB ORDER COSTING NEEDS A GREAT DEAL OF CLERICAL WORK IN RECORDING MATERIAL ISSUE, WAGE COMPUTATION AND PAYMENT AND OVERHEAD CHARGES. * ASCERTAINMENT OF OVERHEAD RATE NEEDS ALLOCATION AND APPORTIONMENT OF THE OVERHEADS

COST ACCOUNTING

Transcript: Chapter 22: Decentralization & Transfer Pricing The Personal Computer Division has just received an offer from an outside supplier to furnish chips at $8.60 each. The manager of Micro Division is not willing to meet the $8.60 price. She argues that it costs her $9.00 to produce and sell each chip. Sales to outside customers are at a maximum of 200,000 chips. Yajing Chen, Yuening Xu, Yingchen Bai, Hei Wong Q&A Thank you ;) Yes, the internal sales will be beneficial to the company because the internal variable manufacturing costs of $72 per battery are less than the external prices of $130 currently being paid by the Assembly Division. The company would be saving $5,220,000* per year. * 90,000 batteries x ($130-$72) = $5,220,000 GROUP 11 $1.25 Wednesday, April 22, 2015 COST ACCOUNTING P21 The Micro Division of Silicon Computers produces computer chips that are sold to the Personal Computer Division and to outsiders. Operating data for the Micro Division for 19x1 are as follows: b. From the company's perspective, will the internal sales be of any benefit? Explain.

Explore our templates for more presentation inspiration

Quarterly Business Review - Downtown

Description: Add some color to your quarterly business review with this vibrant business presentation template. The bold visuals in this business template will make your next QBR a memorable one.

Marketing Proposal Template for Powerful Presentations | Prezi

Description: Catch the eye and engage the imagination with this cool-looking Prezi proposal template. The bold, bright design and highly dynamic theme all but guarantee success for your next sales or marketing proposal. All Prezi presentation templates are easily customized.

Sales KickOff - Rocket

Description: The sky’s the limit. Boost your new sales initiative into orbit with an engaging and compelling SKO presentation. This template features a effective sales kickoff theme that makes it easy to be engaging. Like all Prezi SKO templates, it’s fully customizable with your own information.

Customer Stories - Office

Description: Storytelling is at the heart of great service. Use this stunning, customizable business presentation template to highlight employees who do exceptional work or position your customers as the heroes of your business.

Now you can make any subject more engaging and memorable

Get started with Prezi