暨南大学管理学院成本与管理会计课件 Chapter02.ppt

Cost Terms, Concepts and Classifications Chapter Two Learning Objective 1 Manufacturing Costs Direct Materials Raw materials that become an integral part of the product and that can be conveniently traced directly to it. Direct Labor Those labor costs that can be easily traced to individual units of product. Manufacturing Overhead Manufacturing costs that cannot be traced directly to specific units produced. Non-manufacturing Costs Learning Objective 2 Product Costs Versus Period Costs Product costs include direct materials, direct labor, and manufacturing overhead. Period costs include all selling costs and administrative costs. Quick Check ? Which of the following costs would be considered a period rather than a product cost in a manufacturing company? A. Manufacturing equipment depreciation. B. Property taxes on corporate headquarters. C. Direct materials costs. D. Electrical costs to light the production facility. E. Sales commissions. Quick Check ? Which of the following costs would be considered a period rather than a product cost in a manufacturing company? A. Manufacturing equipment depreciation. B. Property taxes on corporate headquarters. C. Direct materials costs. D. Electrical costs to light the production facility. E. Sales commissions. Classifications of Costs Comparing Merchandising and Manufacturing Activities Merchandisers . . . Buy finished goods. Sell finished goods. Manufacturers . . . Buy raw materials. Produce and sell finished goods. Balance Sheet Merchandiser Current assets Cash Receivables Prepaid Expenses Merchandise Inventory Balance Sheet Merchandiser Current assets Cash Receivables Prepaid Expenses Merchandise Inventory Learning Objective 3 The Income Statement Cost of goods sold for manufacturers differs only slightly from cost of goods sold for merchandisers. Basic Equation for Inventory Accounts Quick Check ? If your inventory balance at the beginning of the month was $1,000, you