Atikah Azmi R. P.

041911333078

Resume Week 2
Basic concepts of management accounting

 Cost  the amount of cash or cash equivalent sacrificed for goods and/or services that bring a current
or future benefit to the organization
 Cost object  any item such as product, customers, departments, projects, activities for which costs
are measures and assigned

 Production cost  cost related to the production goods or services. Increase if production unit
increase and decrease if production decrease
 Periodic cost  cost not related with the production of goods and services but has significant position
in manufacturing company
 Direct costs  costs that can be easily and accurately traced to a cost object
 Indirect costs  costs that cannot be easily and accurately traced to a cost object
 Direct materials  materials that are a part of the final product and can be directly traced to the
goods being produced
 Direct labor  the labor that can be directly traced to the goods being produced
 Manufacturing overhead  All product costs other than direct materials and direct labor
 Selling costs  costs necessary to market, distribute, and service a product or service
 Administrative costs  include research, development, and general administration of the organization
and cannot be assigned to either selling or production
 Calculating Total Product Cost
o Total product post = Direct materials cost + Direct labor cost + Manufacturing overhead cost
o Per-unit Cost = Total Product Cost / Number of Units Produced