Accounting › Section P · Managerial accounting and cost behavior › Topic P.4
Merchandising, manufacturing, and service costs
A physiotherapy clinic, a bookshop and a toy factory all need to control costs, but they incur very different ones. This topic shows how each type of organisation accounts for its costs and introduces the cost vocabulary of manufacturing that the rest of the managerial half depends on.
In this topic
- Three ways to earn revenue
- Service organisations
- Merchandising organisations
- Manufacturers and three inventories
- The three product cost components
- Product costs and period costs
- Prime costs and conversion costs
- Worked example: classifying a toymaker's costs
- Worked example: from factory to income statement
- Common mistakes to avoid
- Key takeaways
This topic is part of Wuanberri Pro. Checking your access…