COST ACCOUNTING by Raiborn and Kinney
CHAPTER 1: Introduction to Cost Accounting
Chapter Summary establish appropriate
measures of
1. Accounting
accomplishment.
provides information to
develop, implement, and
external parties
monitor the necessary
(stockholders, creditors, and
information systems.
various regulatory bodies) for
4. The common corporate strategies
investment and credit
are
decisions.
cost leadership, which refers
helps estimate the cost of
to maintaining a competitive
products produced and
edge by undercutting
services provided by the
competitor prices.
organization.
product differentiation, which
provides information useful
refers to offering (generally
to the internal managers who
at a premium price) superior
are responsible for planning,
quality products or more
controlling, decision making,
unique services than
and evaluating performance.
competitors
2. The purpose of financial,
5. The value chain is a set of value-
management, and cost accounting
adding functions or processes that
are that
converts inputs into products and
financial accounting is
services for company customers,
designed to meet external
and organizations add value
information needs and to
through the value chain functions
comply with generally
of
accepted accounting
research and development
principles.
product design
management accounting
supply
attempts to satisfy internal
production
user’s information needs.
cost accounting creates an marketing
overlap between financial distribution
accounting and management customer service
accounting by providing
6. A balanced scorecard
product costing information
is a four perspective measure
for financial statements and
quantitative, disaggregated, of critical goals and targets
cost-based information that needed to operationalize
managers need to perform strategy.
their responsibilities. looks at the success factors
for learning and growth,
3. The organizational mission and internal business, customer
strategy are important to cost satisfaction, and stockholder
accountants because they help value.
CHAPTER 1: Introduction to Cost Accounting
Chapter Summary establish appropriate
measures of
1. Accounting
accomplishment.
provides information to
develop, implement, and
external parties
monitor the necessary
(stockholders, creditors, and
information systems.
various regulatory bodies) for
4. The common corporate strategies
investment and credit
are
decisions.
cost leadership, which refers
helps estimate the cost of
to maintaining a competitive
products produced and
edge by undercutting
services provided by the
competitor prices.
organization.
product differentiation, which
provides information useful
refers to offering (generally
to the internal managers who
at a premium price) superior
are responsible for planning,
quality products or more
controlling, decision making,
unique services than
and evaluating performance.
competitors
2. The purpose of financial,
5. The value chain is a set of value-
management, and cost accounting
adding functions or processes that
are that
converts inputs into products and
financial accounting is
services for company customers,
designed to meet external
and organizations add value
information needs and to
through the value chain functions
comply with generally
of
accepted accounting
research and development
principles.
product design
management accounting
supply
attempts to satisfy internal
production
user’s information needs.
cost accounting creates an marketing
overlap between financial distribution
accounting and management customer service
accounting by providing
6. A balanced scorecard
product costing information
is a four perspective measure
for financial statements and
quantitative, disaggregated, of critical goals and targets
cost-based information that needed to operationalize
managers need to perform strategy.
their responsibilities. looks at the success factors
for learning and growth,
3. The organizational mission and internal business, customer
strategy are important to cost satisfaction, and stockholder
accountants because they help value.
