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Session #10. Costs Terms, Concepts and Classifications. Exh. 1-2. Comparison of Financial and Managerial Accounting. Direct Materials. Direct Labor. Manufacturing Overhead. Manufacturing Costs. The Product. Direct Materials.

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session 10

Session #10

Costs Terms, Concepts and Classifications

manufacturing costs

DirectMaterials

DirectLabor

ManufacturingOverhead

Manufacturing Costs

The Product

direct materials
Direct Materials

Raw materials that become an integral part of the product and that can be conveniently traced directly to it.

Example:A radio installed in an automobile

direct labor
Direct Labor

Those labor costs that can be easily traced to individual units of product.

Example:Wages paid to automobile assembly workers