COMM 305 Lecture Notes - Lecture 2: Behaviorism, European Cooperation In Science And Technology, Unit
Document Summary
Manufacturing costs: consists of activities to convert raw materials into finished goods: direct materials. Raw materials are basic parts used in manufacturing. Can be physically and directly associated with the finished product that are called direct materials: examples, flour for bread, syrup in bottling soft drinks, steel for automobiles, direct labor. Costs that are indirectly associated with manufacturing of finished goods. All manu costs that cannot be classified as direct material and direct labour: examples, indirect materials ia. Raw materials that cant be easily associated with the finished product ib. don"t physically become part of the finished product or represent a rly small part of the cost of the finished product ib. i. Examples: lubricants, cleaning supplies, polishing compounds, indirect labour ia. Work of factory workers that have no physical association with the finished product, or for which it is impractical to trace the goods produces ia. i. *merchandising firms sell goods in the form in which they are purchased.
