Cost Accounting

Question 1

Indirect Costs ( WITHIN THE FACTORY).

Answer 1

Are product costs. Indirect costs are part of the manufacturing process and are assigned to inventory.

Question 2

NORMAL COST SYSTEM.

Answer 2

DIRECT MATERIAL AND DIRECT LABOR ARE QUANTIFIED AT ACTUAL COST BUT…
MANUFACTURING OVERHEAD COST IS BASED ON STANDARD (EASIER TO COMPUTE AND APPLY TO THE FINISHED GOOD)

Question 3

MANUFACTURING OVERHEAD OR FACTORY OVERHEAD

Answer 3

IT IS THE COST OF INDIRECT LABOR AND INDIRECT MATERIAL AND OTHER MISCELLANEOUS COSTS WITHIN THE FACTORY .