BU247 Lecture Notes - Lecture 1: Opportunity Cost, Fixed Cost, Inventory Control
Document Summary
Extra cost of producing one additional unit of production. Ongoing small, incremental improvements in all parts of an organization. Kaizan short term approach to enhancing efficiency that focuses on improving an existing process or an activity within a process. Direct cost a cost that can be easily and conveniently traced to a specified cost object. Direct labor the labor specifically used in the creation of a good. Direct materials the materials specifically used in the creation of a good. Indirect cost a cost that cannot be easily and conveniently traced to a specified cost object, a part of manufacturing overhead. Manufacturing overhead everything that is indirectly involved with the production of a good. not direct materials and not direct labor. Product/ inventorial cost costs that are a necessary and integral part of producing the finished product. shows up on the balance sheet until product is sold.
