ACC 208 Lecture Notes - Lecture 1: Opportunity Cost, Variable Cost, Sunk Costs

• School: Cal Poly Pomona
• Department: Accounting
• Course: ACC 208
• Professor: Sepeedeh Ahadiat

Document Summary

Acc 208 chapter 1 managerial accounting and cost. Direct costs are costs that can be easily and conveniently traced to a unity of product or other cost object. Indirect costs are costs that cannot be easily and conveniently traced to a unit of product or other cost object. Common costs are indirect costs incurred to support a number of cost objects. Direct materials are raw materials that become an integral part of the product and that can be conveniently traced directly to it. Direct labor are those labor costs that can be easily traced to individual units of product. E. g. are wages paid to automobile assembly workers. Manufacturing overhead are manufacturing costs that cannot be easily traced directly to specific units produced. E. g. indirect materials and indirect labor: indirect materials are materials used to support the production process, indirect labor are wages paid to employees who are not directly involved in production work.