MANAGERIAL ACCOUNTING ACCESS CARD
17th Edition
ISBN: 9781266165276
Author: Garrison
Publisher: MCG
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Question
Chapter 1, Problem 1Q
To determine
Introduction:
Products costs refer to the cost incurred by the firm to produce a product or render a service. It includes expenses such as labor, raw material, manufacturing
The types of product cost involved in the production of the product in a manufacturing concern is to be determined.
Expert Solution & Answer

Answer to Problem 1Q
Solution:
The three major product cost are:
- Direct material cost
- Direct labor cost
- manufacturing overheads
Explanation of Solution
The Product cost is the sum total of all the costs incurred to get the finished product into existence. The Product cost comprises of the following costs:
- Direct Material cost: are raw materials purchased that go directly into producing the products. These costs are variable in nature.
- Direct Labor cost: are the wages paid to laborers who are directly involved in the processing of raw material for its conversion into finished goods. These costs are also variable in nature.
- Manufacturing Overheads: The Manufacturing overheads are termed as all indirect costs which are incurred in the factory or the work place as necessary cost for the processing. These include indirect material, stores consumed, indirect labour,
depreciation of machines, repairs of machines, other indirect cost related to factory, etc. The manufacturing overheads may be fixed or variable in nature.
Product cost is the sum of all the above costs incurred in producing a product.
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Chapter 1 Solutions
MANAGERIAL ACCOUNTING ACCESS CARD
Ch. 1 - Prob. 1QCh. 1 - Define the following: (a) direct materials, (b)...Ch. 1 - Explain the difference between a product cost and...Ch. 1 - Distinguish between (a) a variable cost, (b) a...Ch. 1 - Prob. 5QCh. 1 - Define the following terms: (a) cost behavior and...Ch. 1 - What is meant by an activity base when dealing...Ch. 1 - Prob. 8QCh. 1 - Distinguish between discretionary fixed costs and...Ch. 1 - Does the concept of the relevant range apply to...
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Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
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Martinez...Ch. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
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Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
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Martinez...Ch. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - EXERCISE 1—1 Identifying Direct and Indirect Costs...Ch. 1 - EXERCISE 1-2 Classifying Manufacturing Costs LO1-2...Ch. 1 - EXERCISE 1-3 Classifying Costs as Product or...Ch. 1 - EXERCISE 14 Fixed and Variable Cost Behavior LO14...Ch. 1 - Prob. 5ECh. 1 - EXERCISE 1—6 Traditional and Contribution Format...Ch. 1 - Prob. 7ECh. 1 - EXERCISE 18 Product Costs and Period Costs;...Ch. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - EXERCISE 1—11 Cost Behavior; Contribution Format...Ch. 1 - EXERCISE 1-12 Product and Period Cost Flows LO1–3...Ch. 1 - Prob. 13ECh. 1 - EXERCISE 1-14 Cost Classification 1O1–2, LO1–3,...Ch. 1 - Prob. 15ECh. 1 - EXERCISE 1–16 Cost Classifications for Decision...Ch. 1 - EXERCISE 1-17 Classifying Variable and Fixed Costs...Ch. 1 - PROBLEM 1-18 Direct and Indirect Costs; variable...Ch. 1 - PROBLEM 1-19 Traditional and Contribution Format...Ch. 1 - PROBLEM 120 Variable and Fixed Costs; Subtleties...Ch. 1 - Prob. 21PCh. 1 - Prob. 22PCh. 1 - PROBLEM 123 Cost Classification LO11, LO13, LO14...Ch. 1 - PROBLEM 1-24 Different Cost Classifications for...Ch. 1 - Prob. 25PCh. 1 - CASE 1-26 Cost Classification and Cost Behavior...Ch. 1 - Prob. 27C
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Cost Classifications - Managerial Accounting- Fixed Costs Variable Costs Direct & Indirect Costs; Author: Accounting Instruction, Help, & How To;https://www.youtube.com/watch?v=QQd1_gEF1yM;License: Standard Youtube License