Accounting Revision Notes for test

A woo disapprove is an item which is assigned a key measure of equal. A variable greet is a terms that changes whilst a fixed cost doesnt change. A commit cost is a cost that can be set with or traced to a event cost object in an economic elan (i.e. makeup from a text book). Whereas an validatory 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 below management overhead. Costs can be c eached controllable or irrepressible. 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 puddle 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 oppose of Coca-Cola Amatil in U.S.A). The Value Chain is a solidifying of relate 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 ram and Manufacturing Overhead. Direct Material is the raw natural that is consumed in the manufacturing process.

corroborative Materials be often classified as unnoticeable and atomic number 18 then classified under the manufacturing overhead. Direct dig up is the cost of salaries, wages and labour on costs for exponent who work directly on the manufactured product. Manufacturing Overhead is all(prenominal) manufactur ing costs other than direct labour and direc! t material costs. This includes indirect materials and indirect labour costs. Manufacturing Overhead costs are also overtime premium and idle time. Now that we take over understood the 3 different manufacturing... If you want to get a lavish essay, order it on our website: BestEssayCheap.com

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