BUSI 2170U Study Guide - Behaviorism, Finished Good, Fixed Cost
Document Summary
Cost-accountants define cost as an economic resource given up or foregon to accomplish a particular objective. Cost object- is anything for which we want to calculate a cost such as a product(soft drink), product line(hdtv) or service or process for which cost information is measured and accumulated. Manufacturing consists of activities and processes that convert raw materials into finished goods. Three types of manufacturing cost direct materials direct labour and manufacturing over head. Raw materials-are the basic materials and parts used in the manufacturing process. Direct materials- raw materials that can be physically and directly associated with the finished products during the manufacturing processs are called direct materials. Indirect materials- some raw materials cannot be easily associated with the finished product. *companies account for indirect material as manufacturing overhead. Manufacturing overhead consists of cost that are indirectly associated with the manufacturing of the finished product.
