ABSTRACT
At the end of this chapter you should:
Know how a full-cost analysis is prepared, and when it is appropriate to use it.
Know how a local government (LG) could perform a relatively simple full-cost analysis so it could give its citizens reasonably accurate information on the way it is using resources.
Know the distinction between Stage 1 and Stage 2 of the full-cost accounting methodology.
Know how to use the "stepdown" method for Stage 1.
Know the distinction between a process system and a job-order system for Stage 2.
Understand the concept of activity-based costing (ABC).
Know about the different potential approaches to pricing an LG's services.
