ADM 2341 Lecture Notes - Lecture 2: Earnings Before Interest And Taxes, Sunk Costs, Opportunity Cost
2 Oct 2016
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Adm 2341: lecture 2 & 3 brian to | sept. 12 & 14, Seats that boeing purchases from subcontractors to install in its airplanes (2) direct labour (dl): factory labour costs that can be traced easily to individual units of product: ex. Salaries paid to ppl to produce like factory workers (3) manufacturing overhead (moh): all costs associated w/ manufacturing except dm & dl: ex. *in managerial accounting, we use cost for expenses : prime cost: groups dl & dm into 1 category, conversion cost: dl costs & moh costs are incurred to convert materials into finished products. Cogm = , units = 100 units, sold = 80 units, ending inventory (e. i) = 20 units x = asset under b. s. = period cost (they are only part of the period: marketing or selling costs non-manufacturing costs; all costs necessary to secure customer orders & get finished product or service to customer.
