Cost Accounting for Dummies - Kenneth W Boyd

Biographie:
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Sommaire:

Introduction 1

About This Book 1

Foolish Assumptions 2

Icons Used in This Book 2

Beyond the Book 3

Where to Go from Here 3

Part 1: Understanding the Fundamentals of Costs?5

Chapter 1: So You Want to Know about Cost Accounting?7

Comparing Accounting Methods 8

Considering your shareholders 8

Mulling over creditors 9

Addressing concerns of regulators 9

Using management accounting 9

Fitting in cost accounting 10

Using Cost Accounting to Your Advantage 11

Starting with cost-benefit analysis 11

Planning your work: Budgeting 12

Controlling your costs 12

Setting a price 13

Improving going forward 14

Chapter 2: Brushing Up on Cost Accounting Basics?17

Understanding the Big Four Terms 17

Comparing direct and indirect costs 18

Mulling over fixed and variable costs 20

Fitting the costs together 21

Covering Costs in Different Industries 22

Reviewing manufacturing costs 22

Considering costs for retailers 23

Adding up costs for e-commerce firms 23

Finding costs most companies incur 24

Why Are You Spending? Cost Drivers 25

Pushing equipment too hard and relevant range 25

Previewing inventoriable costs 26

Following the Rules of the Cost Accounting Road 27

Understanding generally accepted accounting principles (GAAP) 27

Deciding on accrual basis or cash basis 29

Finishing with conservatism 30

Chapter 3: Using Cost-Volume-Profit Analysis to Plan Your Business Results?31

Understanding How Cost-Volume-Profit Analysis Works 32

Calculating the breakeven point 32

Financial losses: The crash of your cash 34

Contribution margin: Covering fixed costs 35

Lowering the breakeven point to reach profitability sooner 36

Target net income: Setting the profit goal 37

Using operating leverage 38

Assessing e-commerce businesses 40

Timing is everything when it comes to costs 41

Using Cost-Volume-Profit Analysis to Make Savvy Business Decisions 42

Deciding to advertise 43

Lowering your price without losing your profit 44

Combining the results of two products 45

Costing and pricing a new product 48

The Tax Man Cometh, the Profits Goeth 51

Understanding pre-tax dollars 51

Adjusting target net income for income taxes 52

Chapter 4: Estimating Costs with Job Costing?53

Understanding How Job Costing Works 54

Cost objects: The sponges that absorb money 55

Charging customers for direct and indirect costs 56

Implementing job costing in manufacturing: An example 57

Deciding on costing for IT consulting projects 61

Taking a Closer Look at Indirect Costs using Normal Costing 64

Budgeting for indirect costs 65

Following a normal job costing system 66

Following the Flow of Costs through a Manufacturing System 67

Control starts with control accounts 67

Explaining the debit and credit process 68

Walking through a manufacturing cost example 70

Applying the methodology to other control accounts 73

Chapter 5: More Activity, More Cost: Activity-Based Costing?75

Avoiding the Slippery Peanut Butter Costing Slope 76

Recognizing a single indirect cost allocation 77

A fly in the peanut butter: Dealing with different levels of client activity 77

Missing the mark: Undercosting and overcosting 79

Designing an Activity-Based Costing System 81

Refining your approach 81

Grouping costs ...