by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
Using Differential Analysis to Make DecisionsDifferential revenues and costs (also called relevant revenues and costs or incremental revenues and costs) represent the difference in revenues and costs among alternative courses of action. Analyzing this difference is...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What are Joint Products?Two or more products made from a single input are called joint products. The costs of the single input and related manufacturing process costs must be allocated to each of the joint products. What are Joint Costs? The cost of this single input...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What are Standard Costs?Standard costs are costs that management expects to incur to provide a good or service. They serve as the “standard” by which performance will be evaluated. Manufacturing companies have a standard quantity of direct materials to be used to...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What are Responsibility Centers? Responsibility centers are categorized depending on the level of control over revenues, costs, or investments. Responsibility centers can be based on such attributes as sales regions, product lines, or services offered. The purpose...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Department Allocation of Costs?The department allocation approach is similar to the plant-wide approach except that cost pools are formed for each department rather than for the entire plant, and a separate predetermined overhead rate is established for...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Weighted Average Product Costs?The weighted average method is used to assign all costs in a process-costing system to the products produced. In a process costing system, cost per equivalent unit is the term used to describe the average unit cost for each...
