Cost Objects Flashcards
1
Q
Cost Objectives
A
basis for management decisions
2
Q
Product Costs
A
costs related to the manufacturing of a product
3
Q
Components of Product Costs
A
Direct Material + Direct Labor + manufacturing overhead applied
4
Q
Product costs are
A
inventoriable and traceable (Work in process inventory, finished goods inventory, cost of goods sold)
5
Q
Period Costs
A
Selling, General and Administrative expenses are:
1) Expensed in the period incurred
2) Not Inventoriable
6
Q
Manufacturing Costs
A
All costs associated with manufacturing of a product.
Includes both direct and indirect costs
Ex. Direct Materials, Direct Labor, Manufacturing Overhead,
7
Q
Non Manufacturing Costs
A
do not relate to manufacturing of a product
Expensed in the period incurred
Ex. Advertising costs, Salaries of sales personnel
