Management Accounting - CH 5 Flashcards
1
Q
What are the 3 types of Product costs?
A
Direct Materials, Direct Labor, MOH
2
Q
Direct Materials
A
Easily Traced become part of product
3
Q
Direct Labor
A
Directly traced to manufacturing of a product
4
Q
MOH
A
All manufacturing costs except DL and DM
5
Q
Prime Costs
A
DM and DL
6
Q
Conversion Costs
A
Convert DM to a finished product Dl and MOH
7
Q
Period Costs
A
Non- Manufacturing Costs - Selling and administrative expenses
8
Q
Step Variable Costs
A
Vary at level of activity -> additional supervisor required when increased staff
9
Q
Step Fixed
A
Required to rent an additional factory if production increases
10
Q
Cost Function
A
Variable Cost X Activity Level + Fixed Cost
