Classification of Costs The following costs were taken from the accounting records of theBarnwell Manufacturing Company:1. State income taxes2. Insurance on the manufacturing facilities3. Supplies used in manufacturing4. Wages for employees in the assembly department5. Wages for employees who deliver the product to customers6. Interest on notes payable7. Materials used in the production process8. Rent for the sales outlet in Sacramento9. Electricity for manufacturing equipment10. Depreciation expense on delivery trucks11. Wages for the sales staff12. Factory supervisors’ salaries13. Company president’s salary14. Advertising expenseRequired Classify each item as either a product cost or a period cost. Also, classify all product costs asdirect or indirect, assuming that the cost object is each unit of product manufactured.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Classification of Costs The following costs were taken from the accounting records of the
Barnwell Manufacturing Company:
1. State income taxes
2. Insurance on the manufacturing facilities
3. Supplies used in manufacturing
4. Wages for employees in the assembly department
5. Wages for employees who deliver the product to customers
6. Interest on notes payable
7. Materials used in the production process
8. Rent for the sales outlet in Sacramento
9. Electricity for manufacturing equipment
10.
11. Wages for the sales staff
12. Factory supervisors’ salaries
13. Company president’s salary
14. Advertising expense
Required Classify each item as either a product cost or a period cost. Also, classify all product costs as
direct or indirect, assuming that the cost object is each unit of product manufactured.
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