After you have mastered the material in this chapter you will be able to:
Distinguish between managerial and financial accounting. |
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Identify the cost components of a product made by a manufacturing company: the cost of materials, labor, and overhead. |
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Explain the need for determining the average cost per unit of a product. |
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Distinguish between a cost and an expense. |
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Explain the effects on financial statements of product costs versus general, selling, and administrative costs. |
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Explain how cost classification affects financial statements and managerial decisions. |
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Identify the standards of ethical conduct and the features that motivate misconduct. |
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Distinguish product costs from upstream and downstream costs. |
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Explain how products provided by service companies differ from products made by manufacturing companies. |
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Explain how emerging trends such as activitybased management, value-added assessment, and just-in-time inventory are affecting the managerial accounting discipline. |