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

Lesson Notes Lesson 7 Merchandise Inventories and Cost of Sales Learning Objectives 1. Identify the items included in merchandise inventory 2. Identify the costs of merchandise inventory. 3. Compute the cost of goods sold and ending merchandise inventory in a perpetual system using the costing methods of specific

一、数据集合 Measurements of items e.g., Yearly sales volume for your 23 salespeople e.g., Cost and number produced, daily, for the past month 二、基本单元 The items being measured e.g., Salespeople, Days, Companies, Catalogs, . 三、变量 The type of measurement being done e.g., Sales volume, Cost, Productivity, Number of defects

Chapter Objective: This chapter discusses the cost of capital for the multinational firm

II. Listening Skills Making Calculations 1. W: It sounds expensive. Why did they charge you so much for repairing the computer? M: Well, its $25 for labor to start with. A new modern cost another 50 bucks. On top of that I needed a new battery, and it cost $17

Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University Lesson 7 Merchandise Inventories and Cost of Sales Self-Test I. True and False Questions 1. The inventory of a merchandising company may include manufactured products, but not perishable products such as fruits and vegetables

Chapter Three Consumer’s Behavior Theory: Further analysis(1) Chapter Four Production and Cost Function Chapter Five Perfect Competitive Market （1）完全竞争市场

Plant assets Long-lived assets acquired for use in business operations. Similar to long-term prepaid expenses 田 As years pass, and the The cost of plant assets is services are used, the the advance purchase of cost is transferred to services。 depreciation expense Irwin/McGraw-hill

Structure The cost minimization problem Average costs Returns to scale and total and average costs Short run and long run costs

Outline Flow of inventory cost Items and costs of merchandising inventory Assigning costs to inventory Lower of cost or market Errors in measuring inventory Inventory estimating method