Process and Activity-Based Costing

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.

Content

1. Process Costing and Activity-Based Costing
2. Process Costing
   1. Process Costing
   2. Comparing Job and Process Costing
   3. Introduction to the Cost of Production Report
   4. Job Costing Flows
   5. Process Costing Flows
   6. Job Costing Flows on Job Cost Sheets
   7. Process Costing Flows on Cost of Production Reports
3. Equivalent Units
   1. Factors of Production
   2. An Illustration of Equivalent Units Calculations
   3. Cost per Equivalent Unit
4. Cost Allocation to Completed Units and Units in Process
   1. Cost of Production Report
   2. Journal Entries
   3. Subsequent Departments
   4. The Big Picture
   5. FIFO Process Costing
5. Activity-Based Costing
   1. Pros of ABC
   2. Cons of ABC
   3. The Reality of ABC
   4. A Closer Look at ABC Concepts
   5. The Steps to Implement ABC
   6. A Simple Analogy
   7. A Case Study in ABC
   8. Study Process and Costs
   9. Identify Activities
   10. Determine Traceable Costs and Allocation Rates
   11. Assign Costs to Activities
   12. Determine Per-Activity Allocation Rates
   13. Apply Costs to Cost Objects
   14. What Just Happened?
   15. A Great Tool, But not a Panacea