II. Classifying Costs
Part One: Email Application Activities
Think about where you work. Prepare a memo for me identifying a cost object and then outlining examples of direct and indirect costs.
Think about where you work. Identify whether you work for a merchandizing company, a manufacturing company, a service company, or a combination. Next prepare a memo for me outlining the flow of costs.
Part Two: Chapter Assignment and Homework Problems
Home work: 2-14, 2-22, 2-28, 2-30, 2-32, 2-35
Part Three: Spreadsheet Application Activities
All spreadsheet activities are to include a cover memo explaining the problem and your recommendation. Following the memo is to be the Excel spreadsheet. (2-34) The memo is to include a calculation of the grass margin as a percentage of sale, selling expenses as a percentage of sale, and administrative expenses as a percentage of sales. You then need to explain to me how I should make use of this information.
Part Four: Unit Outline
I. Assigning costs to cost objects and Classification of costs
A. Direct Costs
B. Indirect Costs
C. Common Costs
II. Product and Period Costs
III. The Flow of Product Costs
A. Merchandiser
B. Manufacturer
1. Direct materials
2. Direct labor
3. Manufacturing Overhead
C. Service Firm
