(BQ) Part 2 book "Survey of accounting" has contents: Accounting systems for manufacturing businesses, performance evaluation for decentralized operations, capital investment analysis, budgeting and standard cost systems, cost behavior and cost volume profit analysis,.and other contents. | Accounting Systems for Manufacturing Businesses Learning Objectives After studying this chapter, you should be able to: Obj 1 Distinguish the activities of a manufacturing business from those of a merchandising or service business. Obj 2 Define and illustrate materials, factory labor, and factory overhead costs. Obj 3 Describe cost accounting systems used by manufacturing businesses. Obj 4 Describe and illustrate a job order cost accounting system. Obj 5 Use job order cost information for decision making. Obj 6 Describe the flow of costs for a service business that uses a job order cost accounting system. Obj 7 Describe just-in-time manufacturing practices. Obj 8 Describe and illustrate the use of activitybased costing in a service business. 10 D an Donegan, guitarist for the rock band Disturbed, entertains millions of fans each year playing his guitar. His guitar was built by Washburn Guitars in Chicago. Washburn Guitars is well-known in the music industry and has been in business for over 120 years. Staying in business for 120 years requires a thorough understanding of how to manufacture high-quality guitars. In addition, it requires knowledge of how to account for the costs of making guitars. For example, Washburn needs cost information to answer the following questions: How much should be charged for its guitars? How many guitars does it have to sell in a year to cover its costs and earn a profit? How many employees should the company have working on each stage of the manufacturing process? How would purchasing automated equipment affect the costs of its guitars? Washburn Guitars can answer these questions with the aid of cost information. This chapter introduces cost concepts used in managerial accounting that help answer questions like those above. In addition, the development of cost information and its use in manufacturing a product will be described and illustrated. This chapter begins by describing the nature of manufacturing businesses. We then .
