Chapter 3 Flashcards
1
Q
Production costs
A
Costs incurred in converting the raw material into finished products
2
Q
Non-production costs
A
Admin costs
Selling costs
Distribution costs
Finance costs
3
Q
Direct costs
A
Are a cost, which can be identified with and allocated to a cost centre or cost unit
4
Q
Indirect costs
A
Are costs which cannot be allocated but can be absorbed by cost centres or cost units (overheads)
5
Q
Direct costs
A
Direct material costs
Direct labour costs
Direct expenses costs
6
Q
Indirect costs
A
Indirect materials costs
Indirect labour costs
Indirect expenses costs
