MANAGERIAL ACCOUNTING F/MGRS.
MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
Question
Book Icon
Chapter 1, Problem 1.1Q
To determine

 

Concept introduction:

An organization can be a service or manufacturing firm or both. The costs of the service or product differentiate as per the type of business and product. Costs can be divided into product and period costs. 

To indicate: Three major types of product costs in a manufacturing company. 

Expert Solution & Answer
Check Mark

Explanation of Solution

 

Product costs include the costs incurred in the manufacturing of the product. The three major types of product costs in a manufacturing company are as follows:

  1. Direct material cost: These costs include the cost incurred for the raw material required for the production of goods. 
  2. Direct labor cost: These costs are labor costs directly related to the production of the units. 
  3. Manufacturing overhead costs: These costs are other indirect factory costs incurred for the production.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education