Managerial Accounting and Cost Concepts Solution

Chapter 02 Managerial history and live Concepts Chapter 2 Managerial Accounting and Cost Concepts Solutions to Questions 2-1 The three major elements of harvest-tide hail in a manufacturing company ar require materials, civilize childbed, and manufacturing ov erhead. 2-2 a. forecast materials are an integral part of a finished product and their courts can be conveniently traced to it. b. corroborative materials are principally small items of material such as glue and nails. They whitethorn be an integral part of a finished p roduct unless their exists can be traced to the product altogether at colossal be or inconvenience. c. Direct parturiency consists of savvy comprise that can be easily traced to token products. Direct labor is also called ?touch lab or.? d. In institutionalize labor consists of the labor addresss of janitors, supervisors, materials handl ers, and other factory workers that cannot be conveniently traced to cross products. These labor constitutes are incurred to support production, but the workers knobbed do not directly work on the product. e. Manufacturing smash-up includes all manufactur ing courts except direct materials and direct labor. Consequently, manufacturing smash includes indirect materials and indirect labor as well as other manufacturing costs.

2-3 A product cost is any cost involved in purchasing or manufacturing goods. In t he case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead. A spot cost is a cost that is taken directly to the income stat ement as an expense in the period in which it is in! curred. 2-1 Chapter 02 Managerial Accounting and Cost Concepts 2-4 a. Variable cost: The inconstant cost per unit is constant, but total variable star cost changes in direct proportion to changes in volume. b. dogged cost: The total fixed cost is constant at bottom the applicable range. The average fixed cost per unit varies reciprocally with changes in vo lume. c. Mixed cost: A mixed cost contains both(prenominal) variable...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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