Match one or more of the following terms with each definition below: a. Direct labour e. Inventoriable product costs b. Direct materials f. Manufacturing overhead c. Indirect labour g. Period costs d. Indirect materials _____ i) Operating costs that are expensed in the period in which they are incurred _____ ii) Materials that become a physical part of a finished product and whose costs are traceable to the finished product _____ iii) All manufacturing costs other than direct materials & direct labour _____ iv) Labour costs that are difficult to trace to specific products _____ v) Materials whose costs cannot conveniently be directly traced to particular finished products _____ vi) Product costs included in inventory, as required by GAAP _____ vii) The compensation of employees who physically convert materials into the company’s products; labour costs that are directly traceable to finished products
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Match one or more of the following terms with each definition below:
a. Direct labour e. Inventoriable product costs
b. Direct materials f. Manufacturing
c. Indirect labour g. Period costs
d. Indirect materials
_____ i) Operating costs that are expensed in the period in which they are incurred
_____ ii) Materials that become a physical part of a finished product and whose costs are
traceable to the finished product
_____ iii) All
_____ iv) Labour costs that are difficult to trace to specific products
_____ v) Materials whose costs cannot conveniently be directly traced to particular
finished products
_____ vi) Product costs included in inventory, as required by GAAP
_____ vii) The compensation of employees who physically convert materials into the
company’s products; labour costs that are directly traceable to finished products
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