Join Earl Kay Stice for an in-depth discussion in this video Product costing, part of Accounting Foundations.
One important function of managerial accounting…is computing the internal cost of providing…our products or our services.…Let's do an illustration.…We're in a hypothetical company Ryan Furniture Company.…Ryan Company manufactures custom-made wood furniture.…Now I want you to think for just a moment.…What does it take to make wood furniture?…What do you need?…You need some wood but what else do you need?…We're gonna want to compute the cost…of all the things required to make wood furniture.…
We're gonna follow the flow of cost…through this company.…Ryan Furniture Company…making custom-made wood furniture.…We're here at Ryan Furniture Company.…It's August 17th.…A customer comes in and orders one…custom-made dining table.…A beautiful piece of work made out of oak.…It's about 20 feet long.…They want to be able to fit a lot of people…and then they want it finely honed…and maybe they want their own coat of arms…carved into the top.…They want a very nice table.…It's August 17th, they say, "Okay.…"I'm going around to various furniture makers…
- What is accounting?
- Working with balance sheets and income statements
- Determining the costs of products
- Performing break-even analysis
- Determining average and marginal tax rates
- Understanding tax deductions and credits
Skill Level Appropriate for all
1. Basics of Accounting
2. Financial Accounting
3. Managerial Accounting
4. Income Taxes
Next steps3m 9s
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
This will not affect your course history, your reports, or your certificates of completion for this course.Cancel
Take notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.