Back to Blog
Manufacturing Overhead indirect costs incurred to make products all other cost that go into making the product cost allocation dividing a total cost into parts and assigning the parts to designated cost objects list the 3 categories accountants classify cost in 1.upstreamģ.downstream costs. indirect costs Costs that cannot be easily and accurately traced to a cost object. this is also measured Period Costs non product expenses All costs not associated with obtaining or manufacturing a product. direct labor labor costs that can be easily traced to individual units of product people making the product. A major focus for managerial accountants is product cost Product Costs direct materials, direct labor, manufacturing overhead finished goods inventory manufactured items that are completed and ready for sale raw materials materials used to make products direct raw materials Costs of raw materials used to make products that can be easily and conveniently traced to those products. labor - used to transform the materials into productsģ.overhead- other resources such as utilities and equipments consumed in the process of making the products. What are the Three cost of production recognized by (GAAP) 1. Users(managerial accounting) Insiders, including executives, managers, and operators information type(managerial accounting) Economic and physical data as well as financial data level of aggregation (managerial accounting) Local information on subunits of the organization Information Characteristics (managerial accounting) Estimates that promote relevance and enable timeliness Time horizon Reporting frequency(managerial accounting) past, present, and future continuous reporting Users (Financial accounting) Outsiders, including investors, creditors, government agencies, analysts, and reporters Information type(financial accounting) Financial data Level of aggregation(financial accounting) Global information on the company as a whole Regulation(financial accounting) Regulation by SEC, FASB, and other determiners of GAAP Information characteristics(Financial accounting) Factual information that is characterized by objectivity, reliability, consistency, and accuracy Time horizon reporting frequency(financial accounting) Past only, historically based Delayed, with emphasis on annual reports.
0 Comments
Read More
Leave a Reply. |