During june, buttery corporation
Answers
Explanation:
Direct Costs - cost classification
costs that can be easily & conveniently traced to a unit of product
ex: direct labor and direct costs
Indirect Costs - cost classification
costs that cannot be easily & conveniently traced to a unit of product
ex: manufactoring overhead
Direct Materials - manufacturing costs
integral part of a product, raw materials, can be easily traced
Direct Labor - manufacturing costs
labor costs that can be easily traced to a unit of product
ex: wages paid to automobile assembly workers
Manufacturing Overhead
includes all manufacturing costs, EXCEPT for direct material and direct labor. These costs CANNOT be easily traced (so includes indirect labor & costs)
ex: utility cost, property taxes
consists of variable and fixed costs
Selling Costs - non-manufacturing cots
costs necessary to secure the order and deliver the product. Can be direct or indirect costs
ex: advertising
Administrative Costs - non-manufacturing costs
all executive, organizational, and clerical costs. Can be direct or indirect costs
ex: finance operations
Product Costs - cost classifications for prepping financial statements
all costs that are involved in acquiring or making a product. "attach" to a unit or product as it is purchases or manufactured.
Period Costs - cost classifications for prepping financial statements
include all selling costs
Prime costs - cost classifications for prepping financial statements
sum of direct materials and direct labor costs