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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
Created by: kpatrick21
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