COMM 112 Chapter Notes - Chapter 2: Opportunity Cost, Sunk Costs, Variable Cost
Document Summary
Identify and give examples of each of the three basic manufacturing cost categories. Those materials that become an integral part of a finished product and can be conveniently traced to it. Small items of material that may become an integral part of a finished product but whose costs of tracing exceeds the benefits. Those factory labour costs that can be traced easily to individual units of product. The labour costs of janitors, supervisors, material handlers, and other factory workers that cannot be conveniently traced directly to particular products. All costs associated with manufacturing except direct materials and direct labour. Direct labour cost plus manufacturing overhead cost. Direct materials cost plus direct labour cost. The extra hourly wage rate paid to workers who much work more than their normal time requirements. All costs necessary to secure customer orders and get the finished product or service to the customer.
