Fuck This Class Flashcards
All costs necessary to produce or purchase goods. The three cost of manufactured goods or direct materials, direct labor, and manufacturing overhead.
Product cost
Cost incurred to run a business and sell the goods and services.
Period cost
The two primary classes of period cost are?
Administrative and selling cost
Those materials used in the manufacturing of goods or providing a service that can be effectively and efficiently traced to the finish good
Direct materials
The cost of labor for those workers who are directly responsible for the production of the product or providing the service
Direct labor
All cost, incurred to produce a product, that are Direct materials or direct labor
Manufacturing overhead
All cost incurred to provide a service that are not direct materials or direct labor
‘Service overhead
Materials that cannot be easily traced to the finished product or not a large enough to justify tracing to the final product
Indirect materials
Cost of factory wages and salaries of people not directly related to producing the product
Indirect labor
Direct materials and direct labor
Prime COST
Direct labor and manufacturing/service overhead
Conversion cost
Those cost incurred to keep the business going, including payroll, administrators, personnel, office supplies
‘Administrative cost
Cost incurred in marketing and selling the product to customers
Selling cost
Any item which managers want a separate measure of cost
Cost object
Which of the following is NOT part of the budgeting process?
Planning
Benchmarking
Uncovering bottlenecks
Coordinating operations
Uncovering Bottlenecks
