Cost accounting

• Competence
• Confidentiality
• Integrity
• Credibility

• 1. Maintain an appropriate leve of professional expertise
• 2. Preform professional duties in accordance with relevant laws, regulations, and technical standards
• 3. Provide decision support information and recommendations that are accurate, clear, consise and timely
• 4. Recognise and communicate professional limitatons or other constraints that would preclude responsible judgement or successful performance of an acctivity

• 5. Keep information confidential except when disclosure is authorized or legally required
• 6. Inform all relevant partied regaurding appropriate use of confidential information. Monitor subordinates' activities to ensure compliance with confidentiality.
• 7. Refrain from using confidential information for unethical or illegal advantage

• 8. Miticate actual conflicts of interest. Advise all patirs of any potential conflicts
• 9. Refrain from engaging in any conduct that would prejuducie carrying out duties ethically
• 10.Abstain from engaging in or supporting any activity that might discredit the profession

• 11. Communicate information fairly and objectively
• 12. Discolse all relevant information that could reasonably be expected to influence an intended user's understanding.
• 13. Disclose delays or deficiencies in information

Are sosts in the income statement other than cost of goods sold, are treated as costs in the period in which they are incurred because they are expected to benefit revenues in that period

Expense as we go

are al costs of a product that are considered as assetr in the bakance sheet when they are incurred and that become cost if gods sold only when the product is sold

include the compensation of all maunfacturing labor that can be traced to the cost object in an economically feasible way

are the aquisition costs of all materials that eventuallt become part of the cost object and can be traced to the cost object in an economically feasible way

Direct materials in stock and awaiting use in the manufacturing process

Once a product leaves the store room it moves to WIP

Goods are partially worked on but not yet completed

completed but not yet sold

are direct manufacturing costs (labor and materials)

cost to convert the product from raw materials to the finished good (OH and Labor)

a variable, such as the level of activity or volume, that causually affects costs over a given time span

is used to describe the assignment of indirect costs to a paticular cost object

is the cost incurred

which is a pedicted or forecasted cost

is the band of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question

changes in total proportionto changes in the related level of total activity or volume

remains unchanged in total activity or volume

Amount by which budgetedrevenues exceed breakeven revenues

the cost onject is a unit or multiple units of a distinct product or sevice called a job

Each job generally uses different amount of resources

the cost object is masses of identical o similar units of a product or service

a costing system that traces direct costs to a cost object by using the actual direst cost rates times the actual quantities of the direct costs inputs

and allocates indirect costs based on the budgeted indirect-cost rates times the actual quantities of the cost allocation bases

refines a costing system us identifying individual activities as the fundemental cost objects

is an event, task, or unit of work with a specified purpose

the costs of acivities performed on each individual unit of a product or a service

are the costs of activities related to a group of units of products or services rather than to each individual unt of product or service

are the costs of activities undertaken to support individual products or services regaurdless of the number of units of batches in which the units are produced

are the costs of activities that cannot be traced to indivividual products or services but that support the oganization as a whole.

1. significant amounts of indirect costs are allovated sing only one or two cost pools

2. all or most indirect costs are identified as output unit level costs (few indirect costs are described as batch level costs, product sustaining costs, or facility - sustaining costs

3. products make diverse demands on resources because of differences in volume, process steps, batch size, or complexity

4. Products that a company is well suited to make and sell show small profits whereas products that a company is less suited to produce and sell show large profits

5. Operations staff have significant disagreements with the accounting staff about the cost of manufacturing and marketing products and services