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Exam 2 accounting
Product Costs | All costs incurred to manufacture a product or deliver a service |
Direct Costs | Costs that easily can be traced directly to the cost object |
Direct Materials | Materials that can be physically and conveniently traced directly to the manufacture of the product |
Direct Labor | Labor that can be physically traced to the production of the product in a "hands on" sense. Includes wages,taxes,and benefits |
Indirect Costs | Costs that cannot easily be traced directly to the cost object |
Factory Overhead | All products costs that are not direct materials or direct labors. Costs related to running the factory and providing productive capacity |
Period Costs | All costs incurred but not associated with the manufacture of product or delivery of service. |
Ending Balance Equation | Beginning Balance + Costs added during the period - Costs removed during the period = Ending Balance |