Accounting Revision Notes for test

A woo disapprove is an item which is assigned a key measure of equal.

A variable greet is a cost that changes whilst a fixed cost doesnt change.

A direct cost is a cost that can be identified with or traced to a event cost object in an economic manner (i.e. makeup from a text book). Whereas an indirect 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 under management overhead.

Costs can be c eached controllable or uncontrollable. 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 produce 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 campaign of Coca-Cola Amatil in U.S.A).

The Value Chain is a solidifying of linked 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 Labour and Manufacturing Overhead. Direct Material is the raw material that is consumed in the manufacturing process.



Indirect Materials are often classified as unnoticeable and are then classified under the manufacturing overhead. Direct dig up is the cost of salaries, wages and labour on costs for power who work directly on the manufactured product. Manufacturing Overhead is all manufacturing costs other than direct labour and direct material costs. This includes indirect materials and indirect labour costs. Manufacturing Overhead costs are also overtime premium and idle time.

Now that we have understood the 3 different manufacturing...

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