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Lecture

The document discusses different types of costs including product cost, expenditure, prepaid costs, cost objects, period costs, direct costs, indirect costs and purchases. Product cost includes salaries of factory personnel and is inventoriable. Period cost includes salaries of office personnel and is non-inventoriable. Direct labor plus factory overhead equals conversion cost.

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Kez
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33 views

Lecture

The document discusses different types of costs including product cost, expenditure, prepaid costs, cost objects, period costs, direct costs, indirect costs and purchases. Product cost includes salaries of factory personnel and is inventoriable. Period cost includes salaries of office personnel and is non-inventoriable. Direct labor plus factory overhead equals conversion cost.

Uploaded by

Kez
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Cost – product cost

Expenditure – act of paying


Prepaid – capital expenditure
Cost object – main product
Product cost – inventoriable Example: salaries of factory personnel
Period Cost – non-inventoriable. Example: salaries of office personnel
Direct Cost –
Indirect Cost –
Purchases – materials to be converted into finished goods
Direct labor plus factory overhead = conversion cost

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