Costs Costs Costs
A difference in revenue between two alternatives
is called
Factory Employee's making the product is (indirect/direct) labor.
direct
Direct Labor is what
Product Cost
Debits are on the (Right/Left)
Right
Is Cost Accounting Fun
Perhaps
Your cost of coming to SI instead of having free time before class starts is a example of
opportunity cost
Janitor at a factory (Direct/Indirect) (Product/Period)
Indirect, Product
Supervisor of a Factory is a (Manufacturing/Non-Manufacturing Cost)
Manufacturing Cost
WIP is a (Asset/Liability/Equity) Account
Asset
What is another term for Touch Labor?
Hint: There are two types of Labor
Direct Labor
The monthly service fee for a textile company's sewing machine is most likely a (period/product) cost.
product
Magazine Subscription at Factory (Direct/Indirect), (Fixed/Variable), (Period/Product)
Indirect, Fixed, Product
What are not Manufacturing Costs?
Selling and Admin
COGS is a (Revenue/Expense) Account
Expense
A calculator factory uses microchips from MiCro Inc., for MiCro Inc these chips are (Raw Material/WIP/Finished Goods) and for the calculator company they are (Raw Material/WIP/Finished Goods)
Finished Goods, Raw Material
Has occurred in the past and has already been seen as a cost
Sunk Cost
Oil used for sowing machine lubrication, (Direct/Indirect), (Fixed/Variable), (Period/Product)
Indirect, Variable, Product
DL, DM, MO
What is Managerial Accounting?
Concerned with providing information to managers within an organization to formulate plans, control operations, and make decisions.
What is a Prime Cost?
Direct Labor and Direct Material
When deciding to go to the beach with friends instead of driving, your car stays at home. The Car insurance is still there if you take your car or not. What is this called?
Irrelevant Cost
A company sells Jackets it makes shipments to retail stores every month in multiple batches. The cost to ship these goods are (product, period), (variable,fixed) (direct, indirect)
period, variable, indirect
Is Manufacturing Overhead Fixed or Variable?
Both! depends on the cost, but MO consists of both types.
What is a CPA?
Certified Public Accountant
Allows them to prepare audited or reviewed financial statements and file a report with the Securities and Exchange Commission (SEC).
What is a Conversion Cost
Direct Labor, Manufacturing Overhead