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Why product cost is also called inventoriable cost?
Product cost is also called inventoriable cost because the two terms mean the same thing. These terms mean the cost of manufacturing or buying the product, plus whatever the cost of getting the product ready and in place for sale.
What is the relationship between direct and indirect costs?
Direct costs: Those costs that are linkedto a specific cost objective like product/service. Indirect costs: Those costs that CANNOT be directly linked to a particular cost objective and incurred for multiple cost objectives. Can also be called Common Cost.
What is absorption costing?
The Absorption Cost all manufacturing costs; this includes: - direct materials (those materials that become an integral part of a finished product and can be conveniently traced into it) - direct labor (those factory labor costs that can be easily traced to individual units of product. Also called touch labor) - both variable and fixed manufacturing overhead in the cost of a unit of product. As a result, under absorption costing, fixed overhead is a product cost until sold.
What would be classified batch level activity?
Batch level activity defines the costs that are incurred when a new product batch begins production in a company. Financial managers, who understand the costs of running batches, may choose to manipulate the costs by running longer batches to cut costs. Understanding the costs of batch production also assures more accurate end product pricing.
Why are Fixed costs also called capacity costs?
Fixed costs are considered capacity costs because if a company expands, fixed costs will change. Additionally, if a company adds more resources, fixed costs will change.
Why product cost is also called inventoriable cost?
Product cost is also called inventoriable cost because the two terms mean the same thing. These terms mean the cost of manufacturing or buying the product, plus whatever the cost of getting the product ready and in place for sale.
What is difference between product cost period cost and expenses?
Product costs is the costs are the costs incurred in the making of the product. Manufacturing costs --Direct Materials, Direct Labor, and Manufacturing Overhead. Product cost are also factory costs Period costs are the selling and administration costs. Electricity costs for the Accounting dept. is an administration costs but Electricity costs for the factory is Manufacturing Overhead.
What is the relationship between direct and indirect costs?
Direct costs: Those costs that are linkedto a specific cost objective like product/service. Indirect costs: Those costs that CANNOT be directly linked to a particular cost objective and incurred for multiple cost objectives. Can also be called Common Cost.
What are the costs of business known as?
if you are talking about the costs associated with running a business, they are called "operating costs" there are also the costs that are required to get a business running, they are called "startup costs"
What is absorption costing?
The Absorption Cost all manufacturing costs; this includes: - direct materials (those materials that become an integral part of a finished product and can be conveniently traced into it) - direct labor (those factory labor costs that can be easily traced to individual units of product. Also called touch labor) - both variable and fixed manufacturing overhead in the cost of a unit of product. As a result, under absorption costing, fixed overhead is a product cost until sold.
What would be classified batch level activity?
Batch level activity defines the costs that are incurred when a new product batch begins production in a company. Financial managers, who understand the costs of running batches, may choose to manipulate the costs by running longer batches to cut costs. Understanding the costs of batch production also assures more accurate end product pricing.
Costs of goods sold is also called?
price at which goods are sold is called selling price
Why are Fixed costs also called capacity costs?
Fixed costs are considered capacity costs because if a company expands, fixed costs will change. Additionally, if a company adds more resources, fixed costs will change.
Is it true that all direct costs are variable costs?
All variable costs are those costs which vary with the variation in the volume of production as well as direct costs are those costs which are directly attributable to any specific unit of product so it may be accepted that all direct costs are variable costs but fixed costs may also be direct cost.
Is direct cost and variable cost could be easily identified with a product?
yes direct as well as variable costs can be identified with products easily as with change in production level these costs also changed.
Is there any direction associated with the dot product of two vectors?
No. The dot product is also called the scalar product and therein lies the clue.
What is a number you multiply to get a product called?
The multiplicand is multiplied by the multiplier to obtain the product. They are both also known as factors.
