MAN ACCT

Ace your homework & exams now with Quizwiz!

cost classifications

1. for assigning costs to cost objects 2. for manufacturing companies 3. for preparing financial statements 4. for predicting cost behavior 5. for making decisions

period costs

are all cows that are not product costs

direct materials

are those materials that become an integral part of the finished product and whose costs can be conveniently traced to the finished product

general administration of the organization ________

as a whole

when preparing a _______ and an _______, companies need to classify their costs as _______ or _______

balance sheet and an income statement product costs or period costs

raw materials may include ____________

both direct and indirect materials

direct labor

consists of labor costs that can be easily (i.e., physically and conveniently) traced to individual units of product

the term ____ is used to describe direct labor and manufacturing overhead because these costs are incurred to convert materials into the finished product

conversion costs

______ costs for different ______

different costs for different purposes

most manufacturing companies further separate their manufacturing costs into two direct cost categories ____ and ____, and one indirect cost category _____

direct materials and direct labor manufacturing overhead

administrative costs can be either _____ or _____

direct or indirect costs

selling costs can be either ____ or ____

direct or indirect costs

generally, costs are recognized as _____ on the income statement in the period that benefits from the cost

expenses

administrative costs

include all costs associated with the general management of an organization rather than with manufacturing or selling

product costs

include all costs involved in acquiring of making a product

selling costs

include all costs that are incurred to secure customer orders and get the finished product to the customer

a common cost is a type of

indirect cost

just like indirect materials, _______ is treated as part of _________

indirect labor, manufacturing overhead

manufacturing overhead includes items such as ____________________________________________________________________________

indirect materials; indirect labor; maintenance and repairs on production equipment; and hear and light, property taxes, depreciation and insurance on manufacturing facilities

direct costs

is a cost that can be easily and conveniently traced to specified cost object

indirect cost

is a cost that cannot be easily and conveniently traced to a specified cost object

common cost

is a cost that is incurred to support a number of cost objects but cannot be traced to them indicidually

cost object

is anything for which cost data are desired-including products, customers, jobs, and organizational subunits

conversion cost

is the sum of direct labor cost and manufacturing overhead cost

prime costs

is the sum of direct materials cost and direct labor cost

indirect labor

labor costs that cannot be physically traced to particular products or that can be traced only at great cost and inconvenience

indirect manufacturing cost, factory overhead, and factory burden are various names for

manufacturing overhead

only those costs associated with operating the factory are included in

manufacturing overhead

the _____ is based on the accrual concept that costs incurred to generate a particular revenue should be recognized as expenses in the same period that the revenue is recognized

matching principle

indirect materials

materials such as solder and glue are included as part of manufacturing overhead

these selling costs are sometimes called ____ and _____

order-getting and order-filling costs

the unexpended portion of the insurance payment is carried on the balance sheet as an asset is called

prepaid insurance

inventoriable costs

products costs are initially assigned to inventories

the finished product of one company can become ______ of another company

raw materials

all ___ and ___ are treated as period costs

selling and administrative expenses

non manufacturing costs are often divided into two categories ______ and ________

selling costs and administrative costs

to be traced to a cost object such as a particular product _________________

the cost must be caused by the cost object

raw materials

the that go into the final product

manufacturing overhead

the third manufacturing cost category, includes all manufacturing cows except direct materials and direct labor

whats the reason for so many types of cost

these costs are classified differently according to the immediate need of management

direct labor is sometimes called ____ because __________

touch labor because direct labor workers typically touch the product while it is being made


Related study sets

Chapter 8 Lesson 2- The Israelite Kingdom

View Set

Honors Chemistry: Chemical Reactions Review

View Set

Wordly Wise book 7 Lesson 11 to 15

View Set

Unit Test 4 Chapters 11-13 Part two

View Set

Business 121: Exam 2 - Ch 4, 5, 6, 7

View Set

Organisms Found Around The Globe

View Set