0
What else can I help you with?
Why are product costs also called inventoriable costs?
Product costs are referred to as inventoriable costs because they are directly associated with the production of goods and can be capitalized as inventory on a company's balance sheet until the products are sold. These costs include direct materials, direct labor, and manufacturing overhead. Once the goods are sold, these costs are then expensed as cost of goods sold (COGS) on the income statement. This matching principle ensures that expenses are recorded in the same period as the revenues they help generate.
When a product is sold this cost is often called?
revenue
What is manufacturing overhead?
cost incurred for manufacturing of good and services. It is also called Factory overheads. Example Factory rent,Factory workers salary,other cost which is incurred in factory to manufacture a Product
What costs are inventoriable under GAAP for service organisation merchandising businesses and manufacturing businesses?
service - none merchandising - freight costs, closing inventory manufacturing - direct material, direct labor, freight cost, manufacturing overhead
Role of a Cost Accountant in Manufacturing Industry?
Cost accountant determines the per unit cost of product and guides the management of manufacturing firm about the cost of the product and helps them to set the prices of product according to cost of product rather arbitrary pricing also helps the managment to achieve their target profit effeciently and also guides the governament about the pricing of products so that governaments can maintain prices of products which is in most benifit of the people as a whole.
Why are product costs also called inventoriable costs?
Product costs are referred to as inventoriable costs because they are directly associated with the production of goods and can be capitalized as inventory on a company's balance sheet until the products are sold. These costs include direct materials, direct labor, and manufacturing overhead. Once the goods are sold, these costs are then expensed as cost of goods sold (COGS) on the income statement. This matching principle ensures that expenses are recorded in the same period as the revenues they help generate.
Are the inventoriable costs applicable to manufacturing and merchandising companies applicable to service companies?
1. An example of an inventoriable cost would be: a) Shipping fees b) Advertising flyers c) Sales commissions d) Direct materials
When a product is sold this cost is often called?
revenue
Cost of a product before profit is added - what is this called?
This is called cost price. Companies buy stock at cost price then add their profit and sell at retail price.
What is manufacturing overhead?
cost incurred for manufacturing of good and services. It is also called Factory overheads. Example Factory rent,Factory workers salary,other cost which is incurred in factory to manufacture a Product
What costs are inventoriable under GAAP for service organisation merchandising businesses and manufacturing businesses?
service - none merchandising - freight costs, closing inventory manufacturing - direct material, direct labor, freight cost, manufacturing overhead
Role of a Cost Accountant in Manufacturing Industry?
Cost accountant determines the per unit cost of product and guides the management of manufacturing firm about the cost of the product and helps them to set the prices of product according to cost of product rather arbitrary pricing also helps the managment to achieve their target profit effeciently and also guides the governament about the pricing of products so that governaments can maintain prices of products which is in most benifit of the people as a whole.
What is raw materials cost?
Cost to purchase basic raw material for the manufacturing of product is called the raw material cost like in cost of wood in furniture etc.
Is depreciation on a machine a period cost or product cost?
product cost
Is factory supplies a product cost or period cost?
Product cost
What is notional cost?
Nominal cost is the money cost of production.It is also called expenses of production.These expenses are important from the vier of the producer.He must make sure that the price of the product,in the long run, covers these expenses including normal profit,otherwise he cannot afford to carry on the business Nominal cost is the money cost of production.It is also called expenses of production.These expenses are important from the vier of the producer.He must make sure that the price of the product,in the long run, covers these expenses including normal profit,otherwise he cannot afford to carry on the business
What is techniques costing?
There are two type of costing are involved in a product or service. ie Direct cost and Indirect cost. In this two head there are two sub type costing are involved. ie Varriable cost and Fixed cost. Here the the total varriable cost are involved in a product of cost is called marginal costing. In another way the totoal cost -fixed cost is called marginal costing By M.Magesh 099948 33079
