Term
| Direct Materials Used in Production |
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Definition
| BB DM + Purchases - EB DM |
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Term
| Cost of Goods Manufactured |
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Definition
| BB WP + DM Used in Production + Direct Labor + Manufacturing Overhead |
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Term
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Definition
| BB FG + Cost of Goods Manufactured - EB FG |
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Term
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Definition
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Term
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Definition
| Gross Margin - Operating Expenses |
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Term
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Definition
| Include all costs involved in acquiring or making of the product. These costs consist of Direct Materials, Direct Labor, and Manufacturing Overhead. |
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Term
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Definition
| Anything that is not a product cost. These costs happen outside of the factory and deal directly with the office or organization. |
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Term
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Definition
| The Sum of Direct Materials Cost and Direct Labor Cost. |
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Term
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Definition
| The sum of direct labor cost and manufacturing overhead. |
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Term
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Definition
Total variable cost changes as activity level changes.
EX: Text Message Bill |
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Term
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Definition
| Total fixed cost remains the same even when activity changes and goes down as activity level goes up. |
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Term
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Definition
Costs can easily be traced to a cost object.
EX: Direct Materials and Labor |
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Term
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Definition
| Costs that cannot be easily traced to a cost object. |
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Term
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Definition
| Costs that are critical to the production of a product but cannot easily be traced to specific units produced. |
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