Flashcards in Chapter 1 Deck (10):
___ are indirect costs incurred to support a number of cost objects?
What are products costs for Retailers? For Manufacturers?
Product Costs for:
-all costs required to purchase inventory
-all costs required to manufacture inventories
3 parts of Product Costs
What are Raw Materials? Are they a product cost or selling and administrative cost?
-includes Direct Materials(DM) that go into product
-includes Indirect Materials traced to final product (ex: oil for machines)
*Raw Materials are not Selling and Aministrative Costs or part of Product Costs
What is the treatment of Product Costs?
What is the treatment of Period Costs?
-expensed through COGS when Inventory is sold
-expensed in the period incurred
How are wages and salaries classified?
As Product Costs
-Salaries are OH
-Wages are DL
Selling and Administrative Costs?
rent on non-factory buildings
insurance on non-factory
depreciation non-factory equipment
contain VC and FC
How a cost will react (inc./dec.) to changes in level of activity