ADM 2341 Chapter Notes - Chapter 5: Deutsche Luft Hansa
Document Summary
Absorption costing: all manufacturing costs, xed and variable, are assigned to units of product. The process of doing so is also known as full costing . Process costing system: used in situations where a company produces many units of a single product for long periods at a time: unit product cost (per liter, kg, bottle) = total manufacturing cost / total units. Bill of materials: a record that lists the type and quantity of each major item of the materials required to make a product. Materials requisition form: a detailed source document that speci es the type and quantity of materials that are to be drawn from the storeroom and identi es the job to which the costs of materials are to be charged. Direct materials: directly traced to the product or service. Raw materials: ingredients that are converted into a nished product.