Ch 1. Flashcards
1
Q
direct cost
A
any cost that can be easily traced back to a cost object
2
Q
Indirect cost
A
any cost that cant be easily traced back to a cost object
3
Q
product cost
A
Direct materials + Direct Labor + Manufacturing overhead
4
Q
Period Cost
A
selling expenses + admin expenses
5
Q
conversion cost
A
Direct labor + Manufacturing overhead
6
Q
Prime cost
A
Direct materials + Direct labor
7
Q
Variable manufacturing cost
A
Direct materials + Direct Labor + variable manufacturing overhead
8
Q
Total fixed cost
A
Add all fixed costs
9
Q
Cost of goods sold
A
beginning merchandise + purchased merchandise - ending merchandise
10
Q
gross margin
A
Sales - cost of goods sold
11
Q
contribution margin
A
Sales - cost of goods sold - variable expenses
This amount contributes towards covering fixed expenses
