COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Overhead and marketing costs
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Direct raw material costs and direct labor costs
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Administrative and direct labor costs
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Marketing and administrative costs
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Detailed explanation-1: -Its product costs may include: Direct material: The cost of wood used to create the tables. Direct labor: The cost of wages and benefits for the carpenters to create the tables. Manufacturing overhead (indirect material): The cost of nails used to hold the tables together.
Detailed explanation-2: -Manufacturing costs fall into three broad categories of expenses: materials, labor, and overhead.
Detailed explanation-3: -Direct Costs A direct cost includes raw materials, labor, and expense or distribution costs associated with producing a product.
Detailed explanation-4: -Direct Costs Examples Direct materials. Manufacturing supplies. Wages for the production staff.
Detailed explanation-5: -In general, direct costs are those costs that directly benefit one specific project or good that is being produced. Examples of direct costs may include: production employee wages, supplies consumed directly in the production process, and costs of consultants used in producing the finished product.