COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Product cost =?
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Manufacturing overhead cost + Direct labor cost
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Direct materials cost + Direct labor cost
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Direct materials cost + Manufacturing overhead cost
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Direct materials cost + Direct labor cost + Manufacturing overhead cost
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Explanation:
Detailed explanation-1: -The total product cost formula is Total Product Cost = Cost of Raw Materials + Cost of Direct Labor + Cost of Overhead.
Detailed explanation-2: -Understanding the Direct Materials Cost Formula The following formula can calculate the cost: Beginning Materials + Costs of Materials Purchased-Ending Materials = Direct Material Used.
Detailed explanation-3: -Product costs are the direct costs involved in producing a product. A manufacturer, for example, would have product costs that include: Direct labor. Raw materials. Manufacturing supplies.
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