COST ACCOUNTING
STANDARD COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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RM5, 300 (F)
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RM4, 150 (F)
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RM5, 300 (A)
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RM4, 150 (A)
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Detailed explanation-1: -In general, three types of expenses are included in the cost of products: the cost of direct materials, direct labor costs and manufacturing overhead costs.
Detailed explanation-2: -Manufacturing costs fall into three broad categories of expenses: materials, labor, and overhead. All are direct costs.
Detailed explanation-3: -Product cost refers to the costs incurred to create a product. These costs include direct labor, direct materials, consumable production supplies, and factory overhead. Product cost can also be considered the cost of the labor required to deliver a service to a customer.
Detailed explanation-4: -The total product cost formula is Total Product Cost = Cost of Raw Materials + Cost of Direct Labor + Cost of Overhead. Another useful measure is the production cost per unit. This is calculated from the total production cost divided by the total number of units produced.