1. Know why and how companies refine their cost allocation systems.
2. Know how to allocate overhead (indirect costs) using Simple Cost Allocation systems. formula
3. Know how to allocate overhead (indirect costs) using Departmental Overhead rates.formula
4. Know how to allocate overhead (indirect costs) using Activity-Based Costing (ABC) systems. formula
5. Be able to discuss cost distortion comparing the three allocation systems.
6. Know the Cost Hierarchy
7. Know how managers use a refined cost system to improve operations.
8. Know about Lean Thinking.
9. Know the Eight Wastes of Traditional Operations.
10. Know the characteristics of Lean Operations.
11. Know the Costs of Quality (COQ). formula
12. Know how to cost a job using ABC. formula
13. Understand the similarities and differences of the two basic costing systems.
14. Know the flow of costs for Process Costing and the accompanying journal entries. How does it differ from the flow of costs for Job Costing? fformula
15. Know how to use Process Costing and be able to generate a Production Cost Report. formula
16. Know how to compute cost for direct materials and conversion costs using Process Costing.formula