Actual Costing

Actual Costing - Actual Costing a method of cost...

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Unformatted text preview: Actual Costing a method of cost measurement that uses the actual costs of direct materials, direct labor, and overhead to calculate a product or service unit cost. Conversion Costs the costs of converting direct materials into a finished product; the sum of direct labor costs and overhead costs. Cost of Goods Manufactured the cost of all units completed and moved to finished goods storage during an accounting period. Di rect Costs costs that can be conveniently and economically traced to a cost object. Di rect Labor Costs the costs of the labor needed to make a product or perform a service that can be conveniently and economically traced to specific units of the product or service. Di rect material Costs the costs of the materials used in making a product that can be conveniently and economically traced to specific units of the product. Fixed Cost a cost that remains constant within a defined range of activity or time period. I ndirect Costs costs that cannot be conveniently or economically traced to a cost object. I ndirect Labor Costs the costs of labor for production related activities that cannot be conveniently or economically traced to a unit of the product or service. economically traced to a unit of the product or service....
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Actual Costing - Actual Costing a method of cost...

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