Chapter 2 : Cost concepts and cost behaviour analysis

Chapter 2 : Cost concepts and cost behaviour analysis

1. Manufacutring cost

   • Direct material
   • indirect Material
     • They do not psysically become part of the finished product
     • they cannot be easily traced, because thei physical association with the finished product is to small in term of costs
   • Direct labour
     • Indirect Labour
       • work of factory employees thas has no physical association with the product
       • work for which it is impractical to trace costs to the goods produces
   • MOH
     • Includes all indirect things