Portfolio Week-2 of managerial accounting of UoPeople PDF

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this is the week-2 portfolio assignment which is mandatory for uopeople students studying at MBA....

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Manufacturing costs, and (SG&A) costs on own Reflection

Name: Azim Uddin Gazi BUS-5110; Managerial Accounting Dr. Victor Lee University of the People 16th September 2021

Introduction In the discussion of manufacturing cost which can forecast the organizational direct, indirect, and overhead cost as well as costing strategy in the company. In this discussion where is show my own experience and benefits of manufacturing costing with applicable reflects.

Definition In depicting three types of cost; Job Costing means product costing when a company produces different products the job costing is necessary. Process Costing means series unit process cost that mass-producing similar series products which are quite difficult to determine. Activity-Based Costing means a simplified explanation of ABC in that it divides production into core activities, defines costs for those activities, and allocates those costs to products based on consumption of the activities. (Activity-Based Costing, 2018) On the other hand, my experience makes one thing clear that why manufacturing costing is so much important in a company because of the two-part of one is in cost measuring and another one is proper utilized of cost. This can apply to me if I do business or a job where I must follow.

An example: In my previous company experience, I have witnessed that a manager if he/she better-understood manufacturing cost and cost behavior so the company never face any non-profits issues in production.

Course readings and any external readings advantage In the readings and other readings material make me understand that costing has many ways which is very important for me to make own business or do job on managerial position. Job Costing means product costing when a company produces different products the job costing is necessary. Process Costing means series unit process cost that mass-producing similar series products which are quite difficult to determine. Activity-Based Costing means a simplified explanation of ABC in that it divides production into core activities, defines costs for those activities, and allocates those costs to products based on consumption of the activities. (Activity-Based Costing, 2018)

The cost components are: 1. Direct materials are all materials that are an intrinsic element of a final product and have a physical presence that can be traced back to that finished product (Walther & Skousen, 2009).

2. Direct labor costs are the gross salaries paid to employees who perform physical labor on the manufactured commodity product (Walther & Skousen, 2009). 3. Manufacturing overhead costs are all production costs other than the direct materials and direct labor (Walther & Skousen, 2009). “Examples include indirect materials, indirect labor, and factory related depreciation, repair, insurance, maintenance, utilities, property taxes, and so forth.” (Walther & Skousen, 2009, p. 26)

Explaining the Objects In the explanation objects of manufacturing costing direct cost related to direct production, indirect cost related to indirect cost out of production like unexpected oilconsuming cars and Overhead cost connection to office cost material cost, etc. On the other hand, in this unit, we learn about the different types of costs that companies incur and how those costs behave. The types of costs are categorized as direct, indirect, and overhead costs. The way these costs behave determines if they are fixed, variable, or a combination of both (“mixed”). Once the type and behavior are identified, the costs can be analyzed on a per-unit basis. This is needed because we can see the total costs for some time by reviewing the financial statements of a business; however, to control costs, managers must understand those costs at the unit level.

Conclusion In essence, Manufacturing costing and Behavior costing are major parts of a company. I have witnessed that how cost flow accelerates and gear up in different ways to the business. So the cost can be different types but have to familiar being a manager in a company. Whenever manager makes his/her accumulate to costing criteria they can utilize that on various analyzes and informative ways.

References Walther, L., & Skousen, C. (2009). Managerial and Cost Accounting. Ventus Publishing

ApS.

https://library.ku.ac.ke/wp-

content/downloads/2011/08/Bookboon/Accounting/managerial-and-costaccounting.pdf Activity-Based Costing. (2018). Retrieved from https://www.principlesofaccounting.com/chapter-20/activity-based-costing

Learning Guide Unit-2 retrived from https://my.uopeople.edu/mod/book/view.php? id=258396&chapterid=295239...