AFM102 Chapter Notes - Chapter 2: Marginal Cost, Opportunity Cost, Income Statement
13 Jul 2018
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Chapter 1: managerial accounting is about providing information internally to managers to meet their decision needs. Not mandatory in the final product conveniently traced to it. Identify and give examples of each of the three basic manufacturing cost strategies. Direct materials: raw materials materials that go into final product; any materials that are used, direct materials become an integral part of a finished product and can be. Indirect materials (included as a part of manufacturing overhead) small: direct labour (touch labour) can be easily traced to individual units of products. Indirect labour (included as a part of manufacturing overhead) costs of factory. All costs of manufacturing except direct materials and labour. Manufacturing overhead (indirect manufacturing cost, factory overhead, factory burden) workers that cannot be traced directly to particular products (e. g. supervisors, janitors, maintenance, clean-up) Includes only costs associated with operating the production facility: materials (glue, nails) whose costs of tracing exceed the benefits.
