CS115 Study Guide - Final Guide: Activity-Based Costing, Budget, Fixed Cost

132 views31 pages
elliehaj0807 and 36989 others unlocked
CS115 Full Course Notes
13
CS115 Full Course Notes
Verified Note
13 documents

Document Summary

Direct materials: materials that become an integral part of the finished product and that can be physically and conveniently traced to it. Direct labor: labor costs that can be easily (i. e. , physically and conveniently) traced to individual units of product. Manufacturing overhead: all costs of manufacturing except direct materials and direct labour. Idle time: usually charged to overhead if management feels that the cost is a general cost of all production. However, if a specific job results in idle time, then the idle time could be charged to the direct labour costs of that job. Overtime premiums: classification of the overtime as direct labour or overhead depends on the cause of the overtime. A job-specific reason dictates a direct job cost, whereas a normal overtime cost resulting from general conditions dictates an overhead charge. Product cost: costs involved in making or acquiring the product, including direct materials, direct labour, and manufacturing overhead and charged to an inventory account.