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(WIP) ACC 350 Exam 1 Study Material

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Pg. 2 Sarah Allison

Pg. 2 Sarah Allison Takash ACC 350, Spring 2018 Exam 1 Study Material ● Ch. 15 :​ Allocation of Support Dept. Costs, Common Costs, and Revenues​ ….. P. 19 ○ Complete List of Terms (from end of chs, in textbook, with corresponding page #s) ….. P. ○ Terminology​ Definitions ….. P. ○ Direct Method​ ….. P. ○ Sequential (Step) Method​ ….. P. ○ Calculating ​OH Rates from Operating Departments to assign OH Costs to Products, Jobs and Services​ ….. P. ○ Blackboard Problems ….. P. ■ In-Class problem (followed by solutions) ….. P. ■ Case Problem (followed by solutions)….. P. ■ Haliburton Problem (followed by solutions)….. P. ■ Service Department Problem (followed by solutions)….. P. ● Time-Driven Activity Based Costing Article ○ Summary ○ How-To: TDABC Chs. 1 & 2 - Intro. To Cost Accounting: Terminology Definitions​ (Terms listed in study guide) 1. Product/Service cost a. The sum of the costs assigned to a product b. Can be different amounts for the same cost object, depending on the purpose of measurement c. Image illustrating some different product costs for different purposes and the value chain activities they include in their calculations (below):

Pg. 3 Sarah Allison Takash ACC 350, Spring 2018 Exam 1 Study Material 2. Period cost a. Also known as “SG&A” costs b. All costs in the income statement other than COGS c. Examples: i. Design ii. Marketing iii. Distribution iv. Customer Service v. R&D d. For manufacturing firms: i. All non-manufacturing costs in the income statement e. For retail firms: i. All costs not related to the cost of goods purchased for resale f. Treated like expenses in the periods in which they occur 3. Direct labor (DL) a. Compensation for manufacturing labor b. Assignment method: tracing/traced c. Examples: i. Wages paid to workers who convert RM to FG ii. Benefits paid to workers who convert RM to FG