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Introduction to Managerial Accounting

This document discusses an introduction to managerial accounting course. It covers the role of costs in managerial accounting decisions, types of costs including direct materials, direct labor, manufacturing overhead, and non-manufacturing costs. It also discusses how manufacturing costs are composed of prime costs, conversion costs, and total manufacturing costs. The document includes two sample exercises for students to practice calculating costs.

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141 views12 pages

Introduction to Managerial Accounting

This document discusses an introduction to managerial accounting course. It covers the role of costs in managerial accounting decisions, types of costs including direct materials, direct labor, manufacturing overhead, and non-manufacturing costs. It also discusses how manufacturing costs are composed of prime costs, conversion costs, and total manufacturing costs. The document includes two sample exercises for students to practice calculating costs.

Uploaded by

yewiy7456
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

MEDITERRANEAN SCHOOL OF BUSINESS

COURSE: MANAGERIAL ACCOUNTING


CH 1 : INTRODUCTION TO MANAGERIAL ACCOUNTING

Professor: Abdelaziz Fourati

4/7/2021 SOUTH MEDITERRANEAN UNIVERSITY 1


Role of cost
in Managerial Accounting

To make decisions
To determine

Cost of goods Keep or Drop

Selling Prices

Inventories Make or Buy


value

4/7/2021 SOUTH MEDITERRANEAN UNIVERSITY 2


Types of costs

4/7/2021 SOUTH MEDITERRANEAN UNIVERSITY 3


Manufacturing VS Non Manufacturing

• Direct materials
Manufacturing • Direct labor
• Manufacturing overhead

• Marketing or selling expenses


Nonmanufact • General and administrative
uring expenses

4/7/2021 SOUTH MEDITERRANEAN UNIVERSITY 4


Manufacturing costs
Direct materials (DM) | Direct labor (DL) | Manufacturing overhead (MOh)

Prime
DL DM
Cost

Conversion
DL MOh Cost

Total
Prime
Cost MOh Manufacturing
Cost

4/7/2021 SOUTH MEDITERRANEAN UNIVERSITY 5


4/7/2021 SOUTH MEDITERRANEAN UNIVERSITY 6
First Exercise

4/7/2021 SOUTH MEDITERRANEAN UNIVERSITY 7


Exercise 1-6 p 31: for each of the following independent cases (A-E),
compute the missing values in the table:

4/7/2021 SOUTH MEDITERRANEAN UNIVERSITY 8


Second Exercise

4/7/2021 SOUTH MEDITERRANEAN UNIVERSITY 10


Exercise 1-9 p 32 : Noteworthy, Inc., produces and sells small
electronic keyboards. Assume that you have the following
information about Noteworthy’s costs for the most recent
month.

Required: Determine each of


the following for Noteworthy:

• Total product cost


• Prime cost
• Conversion cost
• Manufacturing overhead
• Direct labor
• Total variable cost
• Total fixed cost

4/7/2021 SOUTH MEDITERRANEAN UNIVERSITY 11


Third Exercise

4/7/2021 SOUTH MEDITERRANEAN UNIVERSITY 16


4/7/2021 SOUTH MEDITERRANEAN UNIVERSITY 17

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