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ACC 202 exam 1

ACC 202

QuestionAnswer
direct materials raw materials whose cost can be easily traced to finished products
direct labor labor costs easily traceable to finished products
manufacturing overhead includes all manufacturing costs except direct materials and direct labor
selling cost all costs incurred to secure customer orders and get the finished product to the customer
administrative cost includes all costs associated with the general management of an organization rather than with manufacturing or selling
period cost includes all the costs that are not product costs. all selling and administrative expenses
product cost include all costs involved in acquiring or making a product
planning establishing goals and specifying how to achieve them
controlling gathering feedback to ensure the plan is being properly executed or modified as circumstances change
decision making involves selecting a course of action from competing alternatives
prime cost direct materials + direct labor
conversion cost direct labor + manufacturing overhead
total manufacturing cost direct materials + direct labor + manufacturing overhead
customer intimacy understand and respond to individual customer needs (ritz-carlton)
operational exellence deliver products and services faster, more conveniently, and for cheaper (walmart, southwest)
product leadership higher quality products (apple, dyson)
variable cost constant per unit, varies in total
fixed cost varies per unit, constant in total
Created by: bluepenguin10
 

 



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