BUSACC 0040 Chapter Notes - Chapter 1: Direct Labor Cost, Management Accounting, Operations Management
18 Jan 2018
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Chapter 1: managerial accounting and cost concepts. Indirect cost: a cost that cannot be easily and conveniently traced to a specified cost object: ex: a campbell soup factory may produce dozens of varieties of canned soups. The factory manager"s salary would be an indirect cost of a particular variety such as chicken noodle soup. In the first case, the cost object is chicken noodle soup, while in the second case, the cost object is the entire manufacturing division. Section 2 cost classifications for manufacturing companies: manufacturing companies separate their costs into two broad categories manufacturing and nonmanufacturing costs, manufacturing costs. Identify and give examples of each of the three basic manufacturing cost categories. Indirect materials: are raw materials, such as the solder used to make electrical connections in a samsung hdtv and the blue used to assemble an ethan allen chair, whose costs cannot be easily or conveniently traced to finished products.
