ACCT 210 1st Edition Lecture 5Outline of Last Lecture I. Target incomeII. Income after taxIII. Multi-product CVPIV. Cost – plus pricingOutline of Current Lecture I. Product costsII. Direct materialsIII. Functional cost classificationsCurrent Lecture1. Product costsa. All Costs incurred in producing a productb. Inventoriable – included in inventory on balance sheetc. Expensed on income statement as Cost of Goods Sold when units are sold2. Direct matieralsa. Mateirals that can be physically and conveniently traced directly to the manufacturer of productb. Also called “raw materials”3. Functional cost classificationsTotal costsTotal costsDirectDirectDirect laborDirect laborDirect materialsDirect materialsIndirectIndirectManufacturing overheadManufacturing overheadProduct costsProduct
View Full Document
Unlocking...