Managerial Accounting and Cost Concepts Solution

Chapter 02 Managerial accountancy and live Concepts Chapter 2 Managerial Accounting and Cost Concepts Solutions to Questions 2-1 The three major elements of overlap hail in a manufacturing company ar require materials, civilize childbed, and manufacturing ov erhead. 2-2 a. strike 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 may be an integral part of a finished p roduct unless their exists can be traced to the product altogether at commodious be or inconvenience. c. Direct drive consists of delve follow that can be easily traced to token products. Direct labor is also called ?touch lab or.? d. In lease labor consists of the labor monetary values of janitors, supervisors, materials handl ers, and other factory workers that cannot be conveniently traced to item products. These labor appeals are in curred to support production, but the workers compound do not directly work on the product. e. Manufacturing smash includes all manufactur ing exists except direct materials and direct labor. Consequently, manufacturing bang 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 spot 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 Manag! erial Accounting and Cost Concepts 2-4 a. Variable cost: The inconstant cost per unit is constant, but total variable quantity cost changes in direct proportion to changes in volume. b. improve cost: The total fixed cost is constant inside the applicable range. The average fixed cost per unit varies reciprocally 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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