ACCT 2210
Class Logistics
Teams will be published this week for group work.
Use "DTSU email" as a username; a generic password will be provided for login.
Change password immediately after logging in.
Exam Results Overview
Two chapters left to cover.
Performance improved compared to first exam:
Highest score: 88/90 (2 students)
Second highest: 86/90
About 25% of students scored above 90% (raw score higher than 81)
25-30% in the C range, few below 63/90.
Missed Exams Policy
If Exam 1 missed, Exam 2 score will count for both.
If Exam 2 missed, can use the midterm or an upcoming exam.
All must take the final exam.
Upcoming Work
Focus on joint costs and healthcare production costs.
Group activities will take place starting October 21.
Different industries for team-based projects, with evaluations by peers based on participation.
Cost Concepts
Importance of accumulating, tracing, and allocating costs to ensure accurate financial performance.
Distinction between direct costs (traceable directly to the cost object) and indirect costs (cannot be traced easily).
Cost objects can be products, services, or departments.
Cost drivers influence costs based on their volume's effect on the overall cost object.
Cost Estimation
Estimates are essential for timely decision-making in pricing and budgeting.
Budgets must rely on estimates to avoid delays caused by waiting for actual costs.
Relevance and timeliness drive the need for estimates.
Income Statement Summary
Income statement: reports sales, costs, and net income for a specific period.
Key components:
Sales Revenue
Cost of Goods Sold
Gross Margin
Operating Expenses
Net Income
Cost Assignment in Business
Assign costs based on direct and indirect relations to cost objects.
Direct costs (e.g., salaries of workers directly involved) versus indirect costs (shared resources like facilities).
Effective cost management requires understanding both types of costs in departmental contexts.