About This Chapter
Cost & Fixed Asset Accounting - Chapter Summary
Feel confident that you fully comprehend variable, uniform and contract costing along with other concepts related to cost and fixed-asset accounting by exploring the fun video lessons in this chapter. Our instructors provide in-depth explanations and easy-to-understand examples, ensuring you're able to do the following in no time:
- Discuss the purpose and list components of cost accounting
- Describe the job-order costing system and discuss its processes
- Define process, variable and activity-based costing
- Share examples of absorption, uniform and contract costing
- Make calculations for multiple and operation costing
- Provide the definition and examples of fixed assets
- Differentiate between various methods of depreciation
- Compare and contrast revenue expenditures and capital expenditures
All lessons in this chapter are accessible as short videos, presented in a fun visual format that keeps you engaged. If you'd prefer to study the lessons as texts, simply scroll below the videos to access full transcripts you can easily print or read online. Accompanying each lesson is a multiple-choice quiz you can use to test your knowledge of its contents. A practice exam is available to check your understanding of the entire chapter.
1. Purpose & Components of Cost Accounting
This lesson will introduce what cost accounting is and provide a definition. It will introduce cost elements and how costs are classified in cost accounting, then compare and contrast cost accounting to financial accounting.
2. Job-Order Costing System Processes
In a job-order costing system, the product being manufactured is unique, and its costs can be separately identified and tracked. In this lesson, you'll learn how costs are tracked.
3. Process Costing: Definition & Examples
Costing techniques are used to determine how much it costs a company to manufacture a product. Process costing is the method used when comparable products are manufactured. In this lesson, learn what process costing is and how to use this technique.
4. Variable Costing: Method, Formula & Advantages
This lesson discusses variable costing. It explains how variable costs are determined, how they are calculated, and advantages of variable costing. Examples of variable costing are also provided.
5. Activity-Based Costing: Definition, Formula & Examples
Manufacturing companies rely on product cost data to set product sales prices and determine if products are producing profits. This lesson covers activity-based costing and describes how to assign overhead costs to products using this method.
6. Absorption Costing: Definition, Formula & Example
In this lesson, we'll learn about absorption costing. We'll define it and learn how to calculate it. The lesson will conclude with an example and lesson summary about absorption costing.
7. Uniform Costing: Definition & Example
This lesson defines uniform costing, takes a look at its use, and goes over an example using a trade association. You will learn about uniform costing books and examine its benefits and drawbacks.
8. Multiple Costing: Definition & Calculation
This lesson shows how multiple costing is used to tally costs for a product with components created from different operations. Learn to calculate total costs when multiple costing is necessary, and learn what industries use certain costing methods.
9. Operation Costing: Definition & Calculation
In this lesson, learn more about how to use operation costing. Companies often use this type of costing in manufacturing operations where specific jobs require costing and additional manufacturing processes don't allow for the assignment of individual costs.
10. Contract Costing: Definition & Example
In this lesson, viewers will understand contract costing through a detailed description and examples of how it works. After watching this lesson, the viewer should have an idea of the basic concept of how contract costing is used.
11. What Are Fixed Assets? - Definition & Examples
A company may own different kinds of resources, among which are fixed assets. This lesson explains what fixed assets are, provides examples, and notes the importance of a business' industry in determining fixed assets.
12. Methods of Depreciation
After watching this video lesson, you will understand the differences between the different depreciation methods that are available to you. We will discuss three different methods depending on how you use the equipment that you want to calculate the depreciation for.
13. Comparing Revenue Expenditures & Capital Expenditures
Accountants view revenue expenditures and capital expenditures very differently. But how do you tell the difference? This lesson explains how to categorize the two types of expenditures for accounting purposes.
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