Intended learning outcomes: Disclose the limits of traditional product costing. Explain activity-based costing: aim, basic premise, requirements, and technique. Present typical processes (activities) and process variables as well as the activity-based product cost estimation.
Course section 16.4: Subsections and their intended learning outcomes
16.4 Activity-Based Costing
Intended learning outcomes: Disclose the limits of traditional product costing. Explain activity-based costing: aim, basic premise, requirements, and technique. Present typical processes (activities) and process variables as well as the activity-based product cost estimation.
16.4.1 Limits of Traditional Product Costing
Intended learning outcomes: Describe allocating fixed costs to products with conventional cost accounting using two cost types. Explain the potential for error in traditional product costing.
16.4.2 Introducing Activity-Based Costing: Aim, Basic Premise, Requirements, and Technique
Intended learning outcomes: Produce an overview on activity-based costing. Identify ABC process, process variable and process cost rate. Describe the ABC process plan and the process quantity. Explain allocating fixed costs using activity-based cost accounting.
16.4.3 Typical Processes (Activities) and Process Variables for Activity-Based Costing
Intended learning outcomes: Explain determining main processes and subprocesses, using the example of circuit board assembly. Describe determining main processes and subprocesses using the example of procurement.
16.4.4 Activity-Based Product Cost Estimation
Intended learning outcomes: Produce an overview on Determining the process cost rate and process quantity for supplier management. Explain determining the process cost rate as well as the process costs for external procurement of a single item: “standard component” versus “exotic component.” Present in detail an ABC process plan and activity-based product cost estimation for a produced item as well as for a procured item.
Course 16: Sections and their intended learning outcomes
Course 16 – Cost Estimation, Job-Order Costing, and Activity-Based Costing
Intended learning outcomes: Produce a review on costs, cost elements, and cost structures. Explain cost estimation in detail. Describe job-order costing. Disclose activity-based costing.
16.1 Costs, Cost Elements, and Cost Structures
Intended learning outcomes: Produce an overview on actual, direct, and overhead costs. Differentiate between average costs and standard costs as well as between variable costs and fixed costs. Explain the cost accumulation breakdown that is the cost breakdown structure of a product.
16.2 Cost Estimation
Intended learning outcomes: Present an algorithm for cost estimation of goods manufactured. Produce a representation of the cost accumulation and an overview of the comprehensive calculation for a product line.
16.3 Job-Order Costing
Intended learning outcomes: Describe actual quantities and actual costs. Explain cost analysis. Produce an overview on the interface from order management to cost accounting.
16.4 Activity-Based Costing
Intended learning outcomes: Disclose the limits of traditional product costing. Explain activity-based costing: aim, basic premise, requirements, and technique. Present typical processes (activities) and process variables as well as the activity-based product cost estimation.
16.5 Summary
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16.6 Keywords
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16.7 Scenarios and Exercises
Intended learning outcomes: Elaborate job-order costing and activity-based costing using an example. Compare job-order costing and activity-based costing.
16.8 References
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