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Multiple Inputs in Multiple Departments
Departments incur differing levels of activity inputs or costs associated with those activities. This video proposes a method for assigning those costs to a particular department.
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Mixed Costs
Mixed costs are a combination of two or more related fixed and variable costs. Generally, you used the high-low method of a regression analysis to determine the relationship between fixed and variable costs.
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Mixed Costs vs Step Costs
Mixed costss are a combination of fixed and variable costs. Step costs are consistent costs that step up and remain constant over a range.
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Mixed Costs in Accounting
This video explains what are mixed costs (generally a mix between fixed and variable costs) and how those costs are recorded in managerial accounting.
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Relevant Costs Explained
A relevant cost is the opposite of a sunk cost. The relevant cost is a cost affected by a single management decision. Thus the decision will have an effect on the future cost.
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Recording Bonds under GAAP
GAAP outlines the specific procedure by which you record bond issuances on the balance sheet and income statements. Notably, you must account for bond issuance costs as part of the process.
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Recognize Inventory Sales - Journal Entries
Recognize Inventory Sales - Journal Entries
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Reasons to Use Traditional Costing
Traditional costing methods have numerous positive and negative attribtutes when compared to activity-based costing. This video explains the issues that arise when using traditional costing methods rather than activity-based costing.
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Profit Planning
Profit planning includes taking a look at operations, creating interlocking budgets, and allocating resources to maximize revenue and minimize costs.
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Profit Center Performance - Variable and Absorption Income Statements
Measuring the performance of a profit center is based upon the reporting of profits and losses. Pursuing an absorption or variable costing approach for inventory will alter the gross profit calculation.
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Product Cost vs Period Cost - Accounting
This video explains the difference between recording costs as product costs versus period costs. These two systems of cost accounting have unique purposes in the managerial accounting system.
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Product Costing - Stages of Manufacturing
Product costing changes based upon the stage of manufacturing in which the cost is incurred. This video explains the various stages of manufacturing used in product costing.
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Product Costing - Impact of Work-in-Progress Inventories
Work in progress inventory moves from the balance sheet to the income statement. It impacts product costing as a Cost of Good Sold.
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Product Costing - Cost Flow
Professor AJ Kooti explains what is cost flow and how is it used in product costing as part of managerial accounting
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Product Cost Components
The components of product cost include direct and indirect costs, including materials, labor, overhead, and consumption.
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Process-value Analysis
The process value analysis is an efficiency measure that maps processes to the value added to the organization. Processes with lesser value or higher costs are reduced, eliminated, or transformed.
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Process Costing
Process costing concerns assigning the cost of produciton of a product on a per unit basis to a specific period. There are multiple steps in the process and means of allocating costs.
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Price Corridor Map
Price Corridor of the Mass is a tool managers can use to determine the right price to unlock the mass of target buyers.
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Synergy
the interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.
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Strategic Cost Management
What is Strategic Cost Management? Strategic Cost Management is an approach focusing on making a business more competitive by reducing costs of operations. More specifically, it integrates cost information into the decision-making...
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Steps in Developing an Operational Plan
What are the Steps in Developing an Operational Plan? Operations plans are extremely specific, detailed documents that clearly define how a department or team can contribute to reaching specific company goals. They typically outline the...
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Standard Product Costs
Standard costs are used to estimate what will be the Cost of Goods Sold or COGS.
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Standard Costing and Managerial Control
This video explains the concept of standard costing and its relevance to managerial control. This information is then used to establish a standard system for applying costs and analyzing the management of a particular project or activity.