COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Materials used, direct labor, overhead applied, and ending work-in-process budgets.
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Materials used, direct labor, overhead applied, and work-in-process inventories budgets.
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Materials used, direct labor, overhead applied, work-in-process inventories, and finished goods inventories budgets.
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Materials used, direct labor, overhead applied, and finished goods inventories budgets.
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Detailed explanation-1: -The information contained in a cost of goods manufactured budget would most directly relate to the: Materials used, direct labor, overhead applied, and work-in-process inventories budgets.
Detailed explanation-2: -Cost of Goods Sold (COGS) measures the “direct cost” incurred in the production of any goods or services. It includes material cost, direct labor cost, and direct factory overheads, and is directly proportional to revenue. As revenue increases, more resources are required to produce the goods or service.
Detailed explanation-3: -COGM includes all expenses related to the manufacturing process from inventory and factory overhead to labor. It is calculated by adding together the total costs of manufacturing and beginning work in process (or WIP) inventory and subtracting the ending WIP inventory from their sum.
Detailed explanation-4: -Cost of Goods Manufactured (COGM) is a term used in managerial accounting that refers to a schedule or statement that shows the total production costs for a company during a specific period of time.