Term
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Definition
| Anything you can assign a cost to |
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Term
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Definition
Actual cost of item, can be directly traced
such as: direct materials and labor |
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Term
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Definition
amount can't be traced exactly, is an estimation, allocated to final product
like manufacturing overhead, taxes, safety, majority of costs |
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Term
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Definition
Invetnory, direct materials, labor, manufacturing overhead
everything related to production
direct and indirect
like employee salary (those used to make product)
assets as well |
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Term
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Definition
non production related
expenses right away (non manu)
selling expenses, general admin expenses
like salary of CEO, CFO, commission, advertising |
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Term
| Inventory Accounts of Production Costs |
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Definition
1) Raw Materials
2) Work in Process
3) Finished Goods (like merchandise inventory)
all current assets, belong on balance sheet |
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Definition
Direct manufacturing costs
Sum of direct materials and direct labor |
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Term
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Definition
Cost of converting raw materials into final product
Sum of direct labor and all indirect manufacturing costs (manufacturing overhead) |
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Term
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Definition
1) Beginning Inventory (previous yr. ending)
2) add purchases
making COG avail for sail
3) Minus ending inventory
making COGS
expense account; found in income statement
so is COGM |
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Term
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Definition
1) Beg balance
2) add purchases
making com avail use for
3) minus ending balance
cost of materials used
4) add direct labor (given)
5) add manu overhead |
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Term
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Definition
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Term
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Definition
1) Highest and Lowest, include correlating cost
2) Variable cost per unit = cost/activity (difference)
3) FC = TC - VC per unit (x)
4) TC = FC x VC per unit (x) |
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