Chapter 1

Ex1:
1. FA
2. Investor – creditor
3. Controlling
4. Manager
5. FA ( vì external)
6. MA
7. Planning
8. MA
9. FA
Ex2 :
1.Controlling activities compare actual annual results to planned annual results for the
purpose of awarding manager’s bonuses => False as it’s evaluating, isn’t controlling
2. Focusing on historical cost in4 not characteristic of managerial accounting => true
as FA focus on ----------------. MA focus on future
3. Operational planning converts a strategic plan into short-term action steps => True
Note : 3 matrix : physical metric , kilo metric ( thumbs metric ), time metric
_______________________________________________________________
exp Expenditure chi tiêu
Xác định rõ ràng mục đích của n, biết Chưa xác định rõ ràng hoặc các hđ khó
phân vào đâu, có sự thu về xác định mục đích
VD: mua nvl đưa vào sd cho mđich VD: mua nvl nhập kho, chưa bt dùng với
sxuat luôn mục đích gì

1.2.2. Cost classifaction

PURPOSE OF CC CC

FA chỉ ghi nhận về cost đã xảy ra

MA thu thập in4 về exp, đưa ra dự đóan để tư vấn trong viêc ra quyết định trong tương lai
  Các tiêu thức phân loại exp :
- Classify by function operation
Classification according to the inputs
Prime cost (exp ban đầu) : direct material Convension cost : manu overhead
+ direct labor  Convert materials from crude into
 Company must prepare in finish product
BEGINING to conduct process

NON – MANUFACTURING COST

Marketting/ selling cost Administrative cost
 All expenditure organizational &

- Classify based on relationship with the determined period results

Product cost Period cost
Include : direct material/ labor/ Include: all marketing/ selling cost &
manufacturing overhead administrative cost
Eg: electrical costs to light the Eg : sale commission, property taxes for
production facility; manufacturing corporate headquaters
equipment depreciation;direct material
cost
Inventory (balance sheet) => sale => Exp => income statement
COGS ( income statement )

- Classify based on behavior :

+ Variable cost ( chi phí biến đổi)
+Fixed cost
+ Mixed cost

Variable cost Proportionately Step- variable cost

variable cost
Is the cost always change Increase/decrease only in
respone to fairy wide
changes in activity
( nằm trong phạm vi cho
phép thì vẫn k đổi)
Variable cost per unit -
activity level =>
unchanged per unit,
 change in total
Eg: An activity base ( a Eg: involved service cost
cost driver ) ( electricity ….)
 An activity base is
a measure of Eg:
whatevr causes 1 worker- 10 machines
the incurrence of (maximun)- 1000 units
variable cost
 Factor : unit  1990 units thì vẫn
produced, 1 worker
machine hour,
labor hour, miles
driven

? Quick check : The cost would be variable with the number of cones sold at an
ice cream shop : the cost of ice cream; the cost of napkins for customers

COST CLASSIFICATIONS FOR PREDICTING COST BEHAVIOR

Cost In Total Per Unit

Variable Changes as activity level Remains the same over
changes wide ranges of activity
Fixed Remains the same even Goes down as activity
when the activity level level goes up
changes

FIXED COST
Eg: Rent cost, administrative cost
 The average FC per unit decrease as more quantity are made
 The more company produce, the less cost they save
 The average FC per unit inverse with activity level
 Y=A/x
Committed Discretionary
( bắt buộc) ( tùy ý, dao động)
Long term Short term ( under 1 year)
 Cant be huge reduced in the  May be altered in the short term
short term by current managerial decisions
Eg : deperciation on equipment/ real Eg: advertising; research &
estate taxes development
 #Note: A relevant range : the distance between the minium & maximun activity
level that companies can implement with existing operational capacity

Exercise :
1. The tables are made of wood that costs $100 per table.
 Variable cost & product cost
2. The tables are assembled by workers, at a wage cost of $40 per table.
 Variable & product cost
3. Workers assembling the tables are supervised by a factory supervisor who is
paid $38,000 per year
 Fixed cost & product cost
4. Electrical costs are $2 per machine-hour. Four machine-hours are required to
produce a table
 Variable &product cost
5. The salary of the president of the company is $100,000 per year.
 Fixed cost & period cost

Mixed cost
based on an evalution of production methods and materia, labor & overheaf requirement
Fixed cost Var cost
Reflect the basic minimum cost to The actual service/ the use > normal
maintain service & keep service ready
to serve

Eg: Telephone cost : Y= a+ bx

Y: total
A: Fixed cost
B: variable cost
X: the level of activity
Phải trả 20k hàng tháng để nghe điện thoại ( phí duy trì)
Nếu muốn phản hồi thì phải bỏ thêm 1k/ 1 phút
Nếu muốn nch 30 phút thì 30k
Y= 20.000+ 1 x 30
Eg: If your fixed monthly utility charge is $40, your variable cost is $0.03 per
kilowatt hour, and your monthly activity level is 2000 kilowatt hours, what is the
amount of your utility bill?
Y= 40 +0.03 * 2000
Example: Identify each of the following costs incurred by Universal Sports
Exchange in terms of its cost behavior: variable, fixed, mixed, or step?
 a.Monthly sales staff payroll of $650 Mixed
plus 6% sales commission on jerse
b. $100 monthly rental for credit card Fixed
processing equipment
c. Cost of goods sold of $14.80 per variable vì bán ra bao nhiêu thì ghi
jersey nhận bấy nhiêu
d. The cost of price tags attached to variable
each jersey
e. Inventory insurance that costs $2 per Step
$1,000 of sales
f. Website hosting cost of $25 per fixed
month

 The high-low method :

- Procedure :
+ Gather in4 of mixed cost in diff act levels in appropriate limit
+ select 2 point :
Lowest level :x min in proportion to y min
Y(min) = A+ b. x(min)
Highest level
Y(max) = A+ b . x(max)
 advantage  disadvantage
Simple,easy,popular to use  only use 2 point to determine
the equation of the cost variation so the
results are inaccurate. This equation
will only take effect when the level of
act is in approciate limit

 Least-squares regression method (pp bình phương bé nhất )

- separate mixed cost by fitting a regression line that minimize the sum of squared
errors
-Content :
+ Based on the calcuation of the linear
+Conducting mixed cost survey
Total y = n*A+b* total x (1)
Total xy = A* (total x) + b* (total x mu 2 )

b= ( n * total x.y – total x * total y ) / ( b total x mu 2 – total x mu 2 )

a= ( total y – b* total x ) /n
-Cate exp as relationship based on collection
Direct cost Indirect cost

-Controllable ability of manager

Controllable cost Uncontrollable cost
Can be influnced by management Cannot be affected by management
decisions & action wwithin a given period of time

-Cost classification for decision making

+ Every decision involves a choice between at least 2 alternatives
+Only
Differential cost ( exp Opportunity cost Sunk cost ( exp
chenh lech ) chim/an)

A FUTURE cost that differ The potential benefit Have already beeen
between any 2 alternative is that is given up when incurred and cannot be
known as a differential cost one alternative is changed now/ in the
 Help administrators to selected over another future.
understand that if They shoulde be ignored
other conditions don’t when making decisions
change then the
increase/decrease in
different business
plans will affect the
business results
Costs & revenues that differ eg : If u were not
among alternatives attending college, you
Eg : You have a job paying could be earning $15000
$1,500 per month in your per year. Your
hometown. You have a job opportunity cost of
offer in a neighboring city attending college for 1
that pays $2000 per month. year is $15000
The commuting cost to the eg: suppose your car
city is $300 per month could be sold for $5.000

CHAPTER 2: JOB- ORDER COSTING METHOD (theo don dat hang, theo yeu
cau rieng)
 -many diff products are produced each period
-product are manufactured to order
- unique nature of each order requires tracing/ allocated ( ko trung lap)
=> Xac dinh POHR

UNDER-APPLIED : estimated < actual

Over-applied : es > ac
3 pp : Finished product, COGS, WIP

Chapter 3 : process cositng method

The weight average Fifo
Limitation

Total EU Cost percent %

Material Conversion
I.Section 1 EU
1. EU of 420 180 240
beginning
wip
2. Units started 5100 5100 5100
completed &
tranfered out
in June
3. Equivalent 810 540 270
unit of
ending WIP
6330 5820 5610

WEIGHT- Total EU Cost percent %

AVERAGE Material Conversion
I.Section 1 EU
1. Units started 4800 4800 4800
completed &
tranfered out in
June (AC)
 2. Equivalent unit 260 160 100
of ending WIP
5060 4960 4900
II. Section 2 : total cost
and EU cost unit
1, total cost
-Cost of beginning 15175 9600 5575
WIP
-add cost in May 719500 368600 350900
=>total 734675 378200 356475
2.Cost unit 149 368600/4960 72.75
=74.31
III. Section 3 : cost
flow
- cost of beginning 15175 9600 5575
WIP
-cost added during the 719500 368600 350900
period
 Total 719500 368600 350900
Cost for completed and = 4800 x 149 = 4800 x 74.31 = 4800x 72.75
tranferred units
Cost for EU of ending = = Equivalent unit of
ending WIP x cost
unit
= 160 x 74.31

FIFO Total eu Material Conversion

I, EU
Beginning wip 230 90 140
Unit started & completed 4600 4600 4600
unit
Eu ending wip 260 160 1000
Total EU
II,Cost computation
1,Total cost 719,500 368,600 350,900
2,cost unit 148.5 76 72.5
III.
1.Cost flow
2.Cost allocation
A,cost for EU of begining
-last period 15.175 9600 5575
 -current perod 16.990 6.840 10150
B, cost for completed 683100
units added in May
c.cost for EU of ending =148.5x 160 =76x 160 =72.5x 160
WIP =19.410 =12.160 = 7,250
 Total allocated cost 734.675
( nếu bằng total cost thì
đang làm đúng)

Weighted-average method & FIFO

Cost flow : Cost of beginning WIP + cost added to production
Cost allocated: completed units + equivalent units of ending WIP

Cost reconciliation
- Cost that allocated to equivalent units of beginning WIP had 2 parts :
+ cost in prior period
+cost added in current period to complete beginning WIP
Job order Process costing
Used when A single product is produced Many diff jobs are worked on each
on continuing basis/ for a period
long period of time
Accumulated by Individual Department
use job cost sheet to Use department production reports to
accumluate cost accumulate cost
Compute unit department Job
cost by