Process and Activity-Based Costing - Managerial and Cost Accounting

This book is the eleventh of fifteen books which introduces the basic principles of accounting. In this book you will learn about process and activity-based costing. Key costing concepts include: cost flows, equivalent units, cost allocation to completed units and units in process, journal entries, identifying activities, determining traceable costs and allocation rates, and assigning costs based upon predetermined overhead rates.

Process Costing and Activity-Based Costing

1. Process Costing
1.1 Process Costing
1.2 Comparing Job and Process Costing
1.3 Introduction to the Cost of Production Report
1.4 Job Costing Flows
1.5 Process Costing Flows
1.6 Job Costing Flows on Job Cost Sheets
1.7 Process Costing Flows on Cost of Production Reports

2. Equivalent Units
2.1 Factors of Production
2.2 An Illustration of Equivalent Units Calculations
2.3 Cost per Equivalent Unit

3. Cost Allocation to Completed Units and Units in Process
3.1 Cost of Production Report
3.2 Journal Entries
3.3 Subsequent Departments
3.4 The Big Picture
3.5 FIFO Process Costing

4. Activity-Based Costing
4.1 Pros of ABC
4.2 Cons of ABC
4.3 The Reality of ABC
4.4 A Closer Look at ABC Concepts
4.5 The Steps to Implement ABC
4.6 A Simple Analogy
4.7 A Case Study in ABC
4.8 Study Process and Costs
4.9 Identify Activities
4.10 Determine Traceable Costs and Allocation Rates
4.11 Assign Costs to Activities
4.12 Determine Per-Activity Allocation Rates
4.13 Apply Costs to Cost Objects
4.14 What Just Happened?
4.15 A Great Tool, But not a Panacea

Larry M. Walther, Ph.D., CPA, CMA, is the Ernst & Young Professor and Head of the School of Accountancy at Utah State University. Dr. Walther has authored numerous accounting textbooks and articles, and has served as director and/or consultant to a number to a number of public and nonpublic companies. Dr. Walther obtained his Ph.D. in accounting from Oklahoma State University and has public accounting experience with Ernst & Young. He currently serves as the accounting accreditation committee of the AACSB and is past president for the federation of schools of accountancy.

Dr. Chris Skousen obtained his Ph.D. at Oklahoma State University. He earned MBA and BA degrees from Utah State University. Dr. Skousen gained public accounting auditing experience with KPMG in their Portland, Oregon office, and as an intern in their in Düsseldorf, Germany office, and at Squire & Co. Dr. Skousen has taught accounting at Utah State University, The University of Texas at Arlington, Oklahoma State University, and Brigham Young University-Idaho. He has published in Accounting Horizons, Behavior Research in Accounting, Accounting and the Public Interest, and other journals.