MGT223H5 Chapter Notes - Chapter 02: Variable Cost, Earnings Before Interest And Taxes, Fixed Cost
Document Summary
Mgt223 chapter02: costs terms, classification, cost flow notes. Indirect materials: those raw materials that became integral part of an product and cannot be easily or conveniently traced, ex. janitorial supplies, oil for machines. Indirect labour: the portion of labour cost that cannot be easily traced to a product, ex. salaries of factory supervisor, wages of a janitor. Other moh: ex. depreciation of factory equipment, machine maintenance cost, factory utilities, rent in the factory. Non-manufacturing costs: all other costs involved in the operation of a company besides the manufacturing costs. Administrative costs: include all executives, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing, marketing, or selling. Marketing or selling costs: all costs necessary to secure customer orders to get the finished product or service to the customer, ex. commissions, delivery expense, advertising costs. Financial reporting: product cost: costs that are involved in the purchase or manufacture of goods, ex.