Principles of Managerial Accounting · free preview
The Three Components of Product Cost under Job Order Costing
Product cost under job order costing assembles direct materials, direct labor, and manufacturing overhead, distinguishing them from period costs that never touch the product.
1. Direct materials
Direct materials
2. Direct labor
Direct labor
3. Manufacturing overhead
Manufacturing overhead
4. Why the split matters
Why the split matters
5. Direct material test
Which material is a direct material for a furniture maker?
6. Indirect labor example
Which worker's wages are indirect labor?
7. Overhead contents
Which cost belongs in manufacturing overhead?
8. Period cost boundary
Why are selling and administrative expenses never product costs?
9. Overhead synonym
Manufacturing overhead is also called factory ____, burden, or indirect manufacturing cost. One word.
10. Three components list
Name the third product cost component besides direct materials and direct labor, two words.
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