ACCTG 102 Chapter Notes - Chapter 1: Earnings Before Interest And Taxes, Financial Statement, Opportunity Cost
Document Summary
Internal only, given to managers and that"s it. Cost object anything for which cost data are desired (products, customers, organizational subjects) Direct cost cost that can be easily and conveniently traced to a specific cost object. Accounting for costs in manufacturing companies (also known as: product/inventory costs) (also known as: period costs) Indirect cost cost that cannot be easily and conveniently traced to a specified cost object. Ex: manager"s salary at chicken soup company, because it is not a cost of producing any one soup variety, its incurred as a consequence of running the entire factory. However, direct cost of the manufacturing division. Common cost cost that is incurred to support a number of cost objects but cannot be traced to them individually. These go on balance sheet dm, dl, mo. Known as product costs all costs involved in acquiring or making the product, also known as inventoriable costs. Split into direct materials, direct labor, and manufacturing overhead.
