COST ACCOUNTING
THE MASTER BUDGET
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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These are the costs of personnel who are not directly involved with the transformation of the raw material into a finished product, but whose responsibilities are to support, supervise or direct.
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Direct labor
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Indirect labor
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Cost centre
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Explanation:
Detailed explanation-1: -Direct Costs A direct cost includes raw materials, labor, and expense or distribution costs associated with producing a product.
Detailed explanation-2: -Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good.
Detailed explanation-3: -Imputed Cost-is the cost allocated for resources or use of a service that does not involve a cash outlay.
Detailed explanation-4: -Prime costs include direct material and direct labor costs. Conversion costs include direct labor and overhead expenses. Both are a metric used to determine the efficiency of production.
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