Items to be considered when estimating cost Preparing a baseline budget Cumulating actual costs Determining the earned value of work performed Analyzing cost performance Forecasting project cost at completion Controlling project costs Managing cash flow

What is managerial accounting? Comparison between managerial accounting and financial accounting Cost classifications in different ways Flow of manufacturing activities Job order cost accounting systems and process cost accounting systems Cost allocation

Lesson7 Merchandise Inventories and Cost ofSales Exercise Calculation and Analyzing Problems 1. The perpetual inventory records of LIBY HOUSEHOLD show 150 units of a particular producton hand, acquired at the following dates and costs: Purchase Date Quantity Unit Cost Total Cost

The Cost of Capital: Some Preliminaries The Cost of Equity The Costs of Debt and Preferred Stock The Weighted Average Cost of Capital Divisional and Project Costs of Capital

Why Cost Estimation? Critically important part of system design Too high- lose the contract award Too low-over-run cost plus contracts, company loss on fixed price contracts Trends Design to cost Cost as an independent variable

Chapter F8 Power notes Inventories Learning Objectives 1. Internal Control of inventories 2. Effect of Inventory Errors 3. Inventory Cost Flow Assumptions 4. Perpetual Inventory Costing Methods 5. Periodic Inventory Costing Methods 6. Comparing Inventory Costing Methods 7. Inventory Valuation Other Than Cost 8. Balance sheet Presentation of merchandise 9. Estimating Inventory Cost 10. Financial Analysis and Interpretation

Learning Objectives Classify property and calculate depreciation under the pre-ACRS rules Classify property and calculate cost recovery under the ACRS rules Classify property and calculate cost recovery under the MACRS rules

Geothermal's Cost of Capital Weighted Average Cost of Capital (WACC) Capital Structure Required Rates of Return Big Oil's WACC SInterpreting WACC Flotation Costs

The Relationship betweenTotal Cost and Marginal Cost

What is managerial accounting? Comparison between managerial accounting and financial accounting Cost classifications in different ways Flow of manufacturing activities Job order cost accounting systems and process cost accounting systems