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11 Cards in this Set
- Front
- Back
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Conversion cost
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Expenditure incurred in the process of converting raw materials to finished goods. Conversion cost=direct labor+factory overhead
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Controllable vs. Not controllable
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Depends on employees responsibility (sr. Manager vs supervisor
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Direct cost
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Those traceable to a single cost object
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Indirect cost
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Those hat cannot be traced to a single cost object
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Sunk cost
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Has already been incurred and cannot be avoided or changed
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Product cost
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Expenditures necessary and integral to finished products. Direct material, direct labor, manufacturing overhead.
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Period cost
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Expenditures indemnified more with a time period than with finished products. All non product based costs called operating expenses
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Prime cost
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Expenditures directly associated with the manufacture of finished goods. PC= direct materials + direct labor
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Merchandiser cogs consumption
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Beginning merchandise inventory + cog purchased - ending inventory = cogs
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Manufacturer cogs
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Be going finished goods inventory + cog manufactured - ending finished goods inventory = cogs
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Factory overhead
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Indirect labor, factory supervision, factory utilities, repairs-factory equipment, property taxes-factory building, factory supplies used, factory insurance expired, depreciation, amortization.
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