State and describe three manufacturing cost terms.
These are the costs incurred to produce a product. The elements of manufacturing costs are:
(a) Material costs:
Material costs refer to all the physical inputs into the production process. They do not only refer to purely unprocessed materials or natural resources….
Labor is the physical and mental human input in a production process. Labor costs can be divided into direct labor costs and indirect labor costs.
Direct labor cost refers to wages paid to workers who are directly involved in the production of each item produced. Such labor cost can be physically traced to the creation of product without undue cost. The cost can…………
They are also called indirect production costs. They include all costs of manufacturing except direct materials and direct labor. They are incurred for the benefit of all products thus the amount of overhead-allocated can only…………..
Why should the chief accountant of an organization have a clear understanding of both financial and managerial account?……………
Why are externally presented reports required to be prepared according to generally accepted accounting principles while internally presented managerial accounting reports are not?