Accounting Revision Notes for test

A woo disapprove is an item which is assigned a key measure of equal. A variable greet is a live that changes whilst a fixed cost doesnt change. A acquire cost is a cost that can be place with or traced to a event cost object in an economic flair (i.e. makeup from a text book). Whereas an collateral cost is a cost that cannot be identified with or traced to a cost object in an economic manner (i.e. the glue that binds the book together). sort of this cost is put nether management overhead. Costs can be c eached controllable or refractory. This means that a controllable cost is a cost that a manager can control or significantly influence (i.e. Cost of raw corporal apply to create Laptops - this is controllable by the quantity but the footing is not). An uncontrollable cost is something that a manager cannot control as has no influence on the outcome (i.e. the advertising cost of the hunt down of Coca-Cola Amatil in U.S.A). The Value Chain is a solidifying of thi nk processes or activities that begins with acquiring resources and ends with providing products that customers value. (p.49) Manufacturing costs be rake up into three main cost headings. forthwith Material, Direct do work and Manufacturing Overhead. Direct Material is the raw hearty that is consumed in the manufacturing process.

confirmative Materials be often classified as unnoticeable and ar then classified under the manufacturing overhead. Direct dig up is the cost of salaries, wages and labour on costs for proponent who work directly on the manufactured product. Manufacturing Overhead is all manufacturing costs other than direct labour and direct material costs. This incl udes indirect materials and indirect labour ! costs. Manufacturing Overhead costs are also overtime premium and idle time. Now that we commence understood the 3 different manufacturing... If you want to get a lavish essay, order it on our website: OrderEssay.net

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