Cost Accounting Fundamentals 5th Edition Steven M. Bragg Table of Contents Chapter 1 – Overview of Cost Accounting ........................................................................................... 1 Learning Objectives ............................................................................................................................. 1 Introduction ......................................................................................................................................... 1 Financial Reporting .............................................................................................................................. 1 Management Reporting ....................................................................................................................... 1 Problem Resolution ............................................................................................................................. 3 Price Setting ........................................................................................................................................ 3 Cost Investigation ................................................................................................................................ 4 Budget Formulation ............................................................................................................................. 5 Constraint Analysis .............................................................................................................................. 5 Cost Accumulation Systems ................................................................................................................ 5 Summary ............................................................................................................................................. 6 Review Questions................................................................................................................................ 7 Review Answers .................................................................................................................................. 8 Chapter 2 – The Cost Accountant Job Description.............................................................................. 9 Learning Objectives ............................................................................................................................. 9 Introduction ......................................................................................................................................... 9 To Whom Does the Cost Accountant Report? ...................................................................................... 9 What Are the Principal Accountabilities of the Cost Accountant? .......................................................... 9 What Are the Qualifications of a Cost Accountant? ............................................................................ 11 Who Does the Cost Accountant Supervise? ....................................................................................... 11 Summary ........................................................................................................................................... 11 Review Questions.............................................................................................................................. 12 Review Answers ................................................................................................................................ 13 Chapter 3 – Types of Costs ................................................................................................................. 15 Learning Objectives ........................................................................................................................... 15 Introduction ....................................................................................................................................... 15 Actual Costs ...................................................................................................................................... 15 Avoidable Costs ................................................................................................................................ 15 Committed Costs ............................................................................................................................... 15 Conversion Costs .............................................................................................................................. 16 Deferred Costs .................................................................................................................................. 16 Differential Costs ............................................................................................................................... 17 Direct Costs ....................................................................................................................................... 17 Discretionary Costs ........................................................................................................................... 18 Expired Costs .................................................................................................................................... 18 Fixed Costs ....................................................................................................................................... 18 Historical Costs ................................................................................................................................. 18 Indirect Costs .................................................................................................................................... 19 Irrelevant Costs ................................................................................................................................. 19 Marginal Costs .................................................................................................................................. 19 Normal Costs..................................................................................................................................... 20 Period Costs ...................................................................................................................................... 20 Replacement Costs ........................................................................................................................... 20 Semi-Fixed Costs .............................................................................................................................. 21 Step Costs......................................................................................................................................... 21 Sunk Costs ........................................................................................................................................ 21 Traceable Costs ................................................................................................................................ 21 Variable Costs ................................................................................................................................... 22 Summary ........................................................................................................................................... 22 Review Questions.............................................................................................................................. 23 Review Answers ................................................................................................................................ 24 Table of Contents Chapter 4 – Inventory Valuation ......................................................................................................... 25 Learning Objectives ........................................................................................................................... 25 Introduction ....................................................................................................................................... 25 Valuation Step 1: The Quantity of Inventory on Hand ......................................................................... 25 The Periodic Inventory System .......................................................................................................... 25 The Perpetual Inventory System ........................................................................................................ 26 The Gross Profit Method .................................................................................................................... 27 Valuation Step 2a: Inventory Costing ................................................................................................. 28 The First In, First Out Method ............................................................................................................ 28 The Last In, First Out Method ............................................................................................................ 29 The Dollar-Value LIFO Method .......................................................................................................... 31 The Link-Chain Method ..................................................................................................................... 32 The Weighted Average Method ......................................................................................................... 34 Standard Costing ..............................................................................................................................