MGMT 30B Lecture Notes - Lecture 2: Variable Cost, Financial Accounting, Redbox
Document Summary
Managerial accounting and cost concepts (chapter 2) cost: monetary measure of economic sacrifice made to obtain some product or service. Netflix don"t have costs similar to the others. Manufacturing has to buy raw materials to create finished goods and then sell these finished goods. Merchandising resells already made goods that they buy. Classifications of manufacturing costs direct material* direct labor* Direct materials raw materials that become an integral part of the product and that can be conveniently traced directly to it o o ex. a radio installed in a car, tires (part of product and easily traced) Direct labor those labor costs that can be easily traced to individual units of the product o ex. wages paid to automobile assembly workers, number of hours worked on by carpenters (building) If the depreciation of assets is a part of manufacturing, then yes.
