文档介绍：Manufacturing Cost Concepts
Financial Accounting
Cost is a measure of resources used or given up to achieve a stated purpose.
Managerial Accounting
Product costs are the costs pany assigns to units produced.
The Product
Direct Materials
Direct Labor
Manufacturing Overhead
Manufacturing Costs
Direct Materials
Those materials that e an integral part of the product and that can be conveniently traced directly to it.
Example: A radio installed in an automobile
Direct Labor
Those labor costs that can be easily traced to individual units of product.
Example: Wages paid to automobile assembly workers
Manufacturing costs that cannot be traced directly to specific units produced.
Manufacturing Overhead
Examples: Indirect labor and indirect materials
Wages paid to employees who are not directly involved in production work. Examples: maintenance workers, janitors and security guards.
Materials used to support the production process. Examples: lubricants and cleaning supplies used in the automobile assembly plant.
Classifications of Costs
Direct Materials
Direct Labor
Manufacturing Overhead
Prime Cost
Conversion Cost
Manufacturing costs are bined as follows:
Nonmanufacturing Costs
Marketing and selling costs . . .
Costs necessary to get the order and deliver the product.
Administrative costs . . .
All executive, organizational, and clerical costs.
Product Costs Versus Period Costs
Product costs include direct materials, direct labor, and manufacturing overhead.
Period costs are not included in product costs. They are expensed on the e statement.
Inventory
Cost of Good Sold
Balance Sheet
e Statement
Sale
Expense
e Statement
Cost Classifications for Predicting Cost Behavior
How a cost will react to changes in the level of business activity.
Total variable costs change when activity changes.
Total fixed costs remain unchanged when activity changes.
Total Variable Cost
Your total long distance telephone bill is based on how many minutes y