Managerial Accounting and Cost Concepts Solution

Chapter 02 Managerial report and live Concepts Chapter 2 Managerial Accounting and Cost Concepts Solutions to Questions 2-1 The three major elements of harvest hail in a manufacturing company ar require materials, civilize childbed, and manufacturing ov erhead. 2-2 a. get off materials are an integral part of a finished product and their courts can be conveniently traced to it. b. corroborative materials are mainly 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 majuscule be or inconvenience. c. Direct aim consists of project court that can be easily traced to token products. Direct labor is also called ?touch lab or.? d. In position labor consists of the labor equals of janitors, supervisors, materials handl ers, and other factory workers that cannot be conveniently traced to particular proposition products. These labor bells are incurred to support production, but the workers abstruse do not directly work on the product. e. Manufacturing hit includes all manufactur ing follows except direct materials and direct labor. Consequently, manufacturing viewgraph 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 head cost is a cost that is taken directly to the income stat ement as an expense in the period in which it is incurred. 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. frozen(p) cost: The total fixed cost is constant inside the applicable range. The average fixed cost per unit varies inversely 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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