Lecture Chapter 2 SP07 Lecture Post

Lecture Chapter 2 SP07 Lecture Post - Cost Terms Concepts...

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Phillip A. Blanchard 2006 Cost Terms, Cost Terms, Concepts, Concepts, and Classifications and Classifications Chapter 2 Chapter 2
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Phillip A. Blanchard 2006 Comparing Operations Service Revenues and Operating Expenses NO Inventory
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Phillip A. Blanchard 2006 Comparing Operations Service Merchandisers Revenues and Operating Expenses NO Inventory Revenues and Operating Expenses Buy finished goods Sell finished goods therefore, Cost of Goods Sold Ending Inventory
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Phillip A. Blanchard 2006 Buy Raw Materials Convert into Finished Goods Sell Finished Goods therefore Cost of Goods Sold, Ending Inventory of Raw Materials, and Finished Goods Comparing Operations Service Merchandisers Manufacturers Revenues and Operating Expenses NO Inventory Revenues and Operating Expenses Buy finished goods Sell finished goods therefore, Cost of Goods Sold Ending Inventory Revenues and Operating Expenses
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Phillip A. Blanchard 2006 Manufacturing Cost Concepts Financial Accounting Cost Cost is a measure of resources used or given up to achieve a stated purpose.
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Phillip A. Blanchard 2006 Manufacturing Cost Concepts Financial Accounting Cost Cost is a measure of resources used or given up to achieve a stated purpose. Managerial Accounting Product costs Product costs are the costs a company assigns to units produced.
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Phillip A. Blanchard 2006 Classifications of Product Costs in Manufacturing Companies The The Product Product Direct Labor Direct Material Manufacturing Overhead
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Phillip A. Blanchard 2006 Direct Materials Those materials that are an integral part of the product and that can be conveniently traced directly to the product. Example: A radio installed in an automobile
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Phillip A. Blanchard 2006 Direct Labor Wages paid to employees who convert direct materials into finished products. Direct labor costs can be physically and conveniently traced to products. Example: Wages paid to automobile assembly workers
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Phillip A. Blanchard 2006 Manufacturing Overhead Manufacturing costs that cannot be traced directly to specific units produced. Examples: Indirect labor and indirect material
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Phillip A. Blanchard 2006 Manufacturing costs that cannot be traced directly to specific units produced. Examples: Indirect labor and indirect material Indirect labor is wages paid to employees who are not directly involved in production work. Examples: wages paid to maintenance workers, janitors and security guards. Manufacturing Overhead
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Phillip A. Blanchard 2006 Manufacturing costs that cannot be traced directly to specific units produced. Manufacturing Overhead Examples: Indirect labor and indirect material Indirect labor is wages paid to employees who are not directly involved in production work.
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