Accounting 362

1
Accounting 362

• Course Review

2
Chapter 14 Cost Allocation

• Purposes (4)
• Criteria (4)
• How
• Single rate versus dual
• Budget versus actual
• Methods (3)
• Reciprocal equation will be provided
• Technical as per homework
• Theoretical purposes, criteria, issues
  concerns (reading)

3
Chapter 15 Joint Products

• Identification
• Purposes of joint cost allocation
• Technical Knowledge Methods of allocating (4)
• Theoretical Advantages disadvantages of each
  method
• Relevant information when selling or processing
  further
• Technical Accounting for by-products
• Reading not applicable
• Equations not applicable

4
Chapter 16 Sales Variance Customer
Profitability

• Revenue Allocation theory only
• Sales Variances formula will be provided
• Market Variances formula will be provided
• Customer Profitability
• Customer specific costs
• Distribution channel
• Support
• Sustaining
• Readings Be able to apply the readings to
  customer profitability

5
Chapter 17 Process Costing

• Review as needed to assist in technical knowledge
  required for Chapter 18
• Common errors?
• Other systems
• Hybrid Costing what is it and where is it used?
• Operation Costing what is it and where is it
  used?
• Standard Costing what is it and where is it
  used?
• Reading not applicable

6
Chapter 18 Spoilage, Rework, Scrap

• Types of spoilage theory and application
• Accounting for Normal Spoilage 2 methods -
  theory
• Weighted average method - application
• Job costing spoilage Not applicable
• Reworked scrap theory application
• Inspection points application
• Reading only as far as it provides another
  example. Nothing specific will be tested.

7
Chapter 19 Quality, Time TOC

• Costs of Quality (4 types), theory application
• Time as a weapon Wait time formula will be
  provided
• TOC throughput theory
• Reading not applicable

8
Chapter 20Inventory Mgmt

• EOQ the formula will be provided, theory,
  application, what if analysis
• TRC not applicable
• Lead time, safety stock application
• Challenges in estimating theory
• JIT purchasing
• Reading 5 major constraints
• Other costing methods theory

9
Chapters 21 22 Capital Budgeting

• NPV, IRR Payback
• CCA, Tax shield, taxes, ½ year rule
• Loss of tax shield and assumptions
• Loss of tax shield is two parts, compute loss tax
  shield and then compute PV of that loss
• Tax shield formula to be provided
• Ranking alternatives
• If using calculator, describe inputs
• What if? scenarios, i.e. what would annual cash
  flow have to be for NPV 0?

10
Chapters 23 24

• See detailed PowerPoint on web site