Documente Academic
Documente Profesional
Documente Cultură
R. Quarles
• Cost Measurement
– Must exist separately from bookkeeping system
• Emphasis on accountability for expenditures
• Tracking of cost of resources PURCHASED as
opposed to those USED
– Reorganizes data on resources acquired to
provide strategic cost data
• Not to be confused with accounting
Traditional View
Direct Materials 546,000 68,250 282,000 47,000
Direct Labor 34,000 4,250 45,750 7,625
Manufacturing Overhead 438,750 54,844 208,000 34,667
Total Cost 1,018,750 127,344 535,750 89,292
Quarles, ACC 564, CMS
34
TRADITIONAL V. CONTEMPORARY
COST SYSTEMS
Engineering Activities
• Write specifications
• Others
Manufacturing Activities
•Purchase materials TRADITIONAL
•Receive and inspect materials PRODUCT
•Move materials COST
•Set up machines
•Stamp steel
•Move stamped steel CONTEMPORARY
•Assemble plates PRODUCT
•Inspection COST
•Rework
•Others
Marketing Activities
•Generate customer order
• Others
Customer Support
Activities
•Install exchangers
• Others
Business Support Activities
•Investigate credit
•Draft contract
•Bill customer
• Others
Non-traceable Activities
•Management training
• Others
Quarles, ACC 564, CMS
36
Assignment Notes
• Yamazoo
– Conversion Cost
• The total of Direct Labor and Overhead (all
manufacturing cost except Direct Materials)