Chapter 2A - Chapter 2A Cost Terms Concepts and...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 2A- Cost Terms, Concepts and Classifications I. Further Classification of Labor Costs a. Idle time i. Machine breakdowns, materials shortages, power failures and the like result in idle time ii. Labor costs incurred during idle time may be treated as a manufacturing overhead cost rather than as a direct labor cost b. Overtime Premium i. Overtime Premium paid to all factory workers is considered to be part of manufacturing overhead c. Labor Fringe Benefits i. Made up of employment-related costs paid by the employer and include the costs of insurance programs, retirement plans, various supplemental unemployment benefits, and hospitalization plans ii. Indirect labor by adding them to manufacturing overhead II. Cost of Quality a. Quality of Conformance i. High Quality- a product that meets or exceeds its design specifications and is free of defects that mar its appearance or degrade its performance ii. Quality Cost- refers to all of the costs that are incurred to prevent
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern