Ch 12: Cost Measurement & Systems

About This Chapter

This chapter brings cost measurement and systems concepts to life thanks to entertaining lessons you can access from any tablet, smartphone or computer. Expert instructors offer insights that can help you pass an exam, prepare for a discussion or gain personal knowledge of this subject.

Cost Measurement & Systems - Chapter Summary

Whether you already know a little or a lot about cost measurement and systems, this chapter can refresh or increase your understanding. Fun video and text lessons provide an in-depth look at various costing methods and how companies use them. Examine any lessons you choose in the sequence that suits your studies. In no time, you will be able to:

  • Share the definitions of cost behavior and cost objects
  • Explain how average and total costs differ from marginal costs
  • List the advantages of standard costs
  • Describe how to calculate absorption costing and variable costing
  • Define by-product and joint costing
  • Discuss the impact of financial statements on costing methods
  • Differentiate between process costing and job order costing
  • Provide definitions of activity-based costing and life-cycle costing

Tailor the resources in this chapter to your personal study needs. Access lessons anytime to ensure you can easily fit your examination of cost measurement and systems into a busy schedule. Take self-assessment quizzes and a chapter exam to feel prepared to address this subject in your class. Learn even more by submitting any lesson topic questions you have to our experts.

10 Lessons in Chapter 12: Cost Measurement & Systems
Test your knowledge with a 30-question chapter practice test
Cost Behavior: Definition & Pattern Analysis

1. Cost Behavior: Definition & Pattern Analysis

In this lesson, we will look at cost behavior. We will also explain the three types of cost that a business needs to analyze when understanding cost behavior. The lesson will then conclude with a summary and a quiz.

Cost Object: Definition & Examples

2. Cost Object: Definition & Examples

In this lesson we will explore cost objects. We will define the term and look at some of the different types of cost objects. The lesson will then be concluded with a summary and a quiz.

How Marginal Costs Differ from Average & Total Costs

3. How Marginal Costs Differ from Average & Total Costs

A major concern for producers is trying to figure out how much something costs to make. Through using marginal costs, total costs, and average costs, producers get a much better idea of the prices they should charge.

Standard Costs: Definition & Advantages

4. Standard Costs: Definition & Advantages

In this lesson, we'll explore the concept of standard costing and some of the advantages that this accounting method affords companies that implement it. When you are through, test your understanding with a quick quiz.

Absorption Costing: Definition, Formula & Example

5. 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.

Variable Costing: Method, Formula & Advantages

6. 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.

The Effects of Financial Statements on Costing Methods

7. The Effects of Financial Statements on Costing Methods

The way you calculate the cost of your inventory can change the profit you show on your financial statement. Learn how one method can show higher profits, while the other method can give you tax benefits.

Process Costing vs. Job Order Costing

8. Process Costing vs. Job Order Costing

This lesson introduces two traditional costing methods: job order costing and process costing. You'll see examples of both and learn how companies can utilize either or both processes in their business.

Activity-Based Costing: Definition, Formula & Examples

9. 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.

Life-Cycle Costing: Definition, Formula & Examples

10. Life-Cycle Costing: Definition, Formula & Examples

In this lesson, we will learn the steps in life-cycle costing, its advantages and disadvantages, and how managers use the costing method to make decisions to purchase and maintain equipment.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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