[AFM 102] - Final Exam Guide - Ultimate 86 pages long Study Guide!

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM102
• Professor: Jie Joyce Tian

Document Summary

Direct cost: goes directly into the product manufacturing. Direct cost: a cost that can be easily observed/traced to a cost object. Cost object: the object for which the cost is measured. Direct labour: you can see how many people worked how many hours on the production. Salary of a manager: direct labour (cost object = st. louis brewery) Any costs related to the brewery are direct costs. The difference between direct and indirect cost is that for direct you can see the direct cost happening, and indirect costs are usually shared among many objects. Moh = indirect materials or indirect labour. Indirect materials = materials necessary for production, but not in the products. Idle hours: when your workers have nothing to work on. Overtime hours: when there"s a rush to complete something, you have to pay workers extra if they need to work longer hours to get the work done.