1 Cost object: Bed 2 Timber acquisition costs 3 board acquisition cost 4 5 6 The cost of acquiring sandpaper Wages for bed workers Salary for production supervisor 7 Mattress acquisition costs 8 Bed shipping costs 9 Cost of acquiring nails 10 Salary for production manager 11 Factory electricity payments 12 Cost of wood glue 13 Production costs Non-production (direct materials, costs direct labor, overhead) Direct Materials (marketing, administration)

Q: Distinguish between Period cost and Product cost? Give two examples of each cos

A: Classification of costs on the basis of functions:- 1. Product Cost 2. Period Cost

Q: explain fixed and variable costs within a relevant range of production

A: The objective of this question is to understand the concepts of fixed and variable costs within a…

Q: What are the differences between a product cost and a period cost

A: In accounting we say that costs are often product costs or period costs. The difference between the…

Q: Which of the following statements is true about byproduct costing?    Byproduct costs are allocated…

A: Byproduct costing is the method of allocating costs to the main product and byproducts in a…

Q: What is the most important purpose of the cost of production report? Why?

A: Production report is the report which is made by the manufacturing company which makes the goods or…

Q: Research and development costs are classified as: O a. Inventoriable costs. O b. O c. O d. Product…

A: A cost accounting system is a system of accounting that is helpful for the internal management to…

Q: Question: In a manufacturing setting, direct labor costs are considered: a) Variable costs b) Fixed…

A: Variable costs - Fixed costs - Mixed costs- Overhead costs

Q: Which of the following costs change in total directly and proportionately with respect to the…

A: The objective of the question is to identify the type of cost that changes in total directly and…

Q: How are costs assigned differently using the average cost method?

A: Inventory valuation is the valuation of inventory at the time of its purchase and sale using…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.