14: Cost Measurements Flashcards
what is product cost
can be associated with production of specific revenues. also known as inventoriable or manufacturing costs.
what is period costs
cannot be matched with specific revenues and expensed in period occurred, also called selling and admin costs.
name the three components of product costs
direct material, direct labor, manufacturing overhead
what are prime and conversion costs
prime- DM and DL
conversion: DL and MO
what is the traditional overhead rate
budgeted manufacturing overhead costs/estimated activity volume
name the types of spoilage and indicate the appropriate accounting treatment
adnormal: change to income of the current period
normal: increase the cost of the product produced (i.e inventory)
what is the formula for cost of goods manufactured
WIP beginning
add: DM, DL, MQ
less ending WIP
what is the formula for cost of goods sold
beginning inv
plus purchases
less end inventory
what is the high low method
need answer
