BEC Decision Making review 1

What are the manufacturing cost elements?

• 1. direct materials
• 2. direct labor
• 3. manufacturing overhead.

What are the manufacturing cost elements?

• 1. direct materials
• 2. direct labor
• 3. manufacturing overhead.

What are the manufacturing cost elements?

• 1. direct materials
• 2. direct labor
• 3. manufacturing overhead.

What are the manufacturing cost elements?

• 1. direct materials
• 2. direct labor
• 3. manufacturing overhead.

direct labor represents the labor that acts directly on the product and physically transforms or manipulates the products.

Direct materials are the materials that become an integral part of the finished product and are easily traceable to the finished product.

Manufacturing overhead costs consist of all production cost other than direct material and direct labor costs.

the conversion cost is the sum of the direct labor and manufacturing overhead.

the conversion cost is the sum of the direct labor and manufacturing overhead.

Prime cost is the sum of the direct materials and direct labor costs.

Prime cost is the sum of the direct materials and direct labor costs.

product costs are costs that are inventoriable (directly or indirectly related to physical units.

product cost become an expense when the goods to which the costs attached are sold.

period costs are costs that are not incurred in the production of physical units and are not inventoried.

All selling and administrative costs are period costs.