 Show 3/18/22, 5:56 PMCost management CH 3 Flashcards | Quizlet Page 1 of 9https://quizlet.com/317716348/cost-management-ch-3-flash-cards/ HomeExplanations Your library Cost management CH 3 9 studiers in the last day Social ScienceEconomicsFinance Terms in this set (50) Since indirect cost cannot be conveniently or economically traced directly to a cost pool or cost object, the management accountant will: assign thm by means of cost allocation All indirect manufacturing costs are commonly combined into a single cost pool called: overhead Variable costs within the relevant range for a firm are assumed: not to vary per unit How will unit (average) cost of manufacturing (materials, labor and overhead) usually change if the production level rises? it will decrease, but not indirect proportion to the production increase Structural cost drivers are to executional cost drivers as: long term is to short term Direct labor is production or services labor that is assigned to a specific product, cost center, or work order. When a business manufactures products, direct labor is considered to be the labor of the production crew that produces goods, such as machine operators, assembly line operators, painters, and so forth. When a business provides services, direct labor is considered to be the labor of those people who provide services directly to customers, such as consultants and lawyers. Generally, a person who is charging billable time to a customer is working direct labor hours. The cost of direct labor is generally considered to be the cost of regular hours, shift differentials, and overtime hours worked by employees, as well as the related amounts of payroll taxes. An expanded version of direct labor, known as fully-burdened direct labor, also includes an allocation of the benefit costs earned by direct labor employees. Direct labor is considered to be a direct cost, which means that it varies directly with revenue or some other measure of activity. This is not necessarily the case in a production environment, where the manufacturing area typically requires a certain amount of staffing, irrespective of the number of units produced. The direct cost concept is more applicable in a professional billings environment, where the cost of direct labor usually varies with changes in revenue. Which of the following Labour costs would be considered direct Labour?The cost of direct labor is generally considered to be the cost of regular hours, shift differentials, and overtime hours worked by employees, as well as the related amounts of payroll taxes.
What is direct manufacturing labor cost?Cost Modeling of Materials and Manufacturing Processes
Direct labor costs are a function of the wages paid (including all costs to the manufacturer of employing a worker), the number of laborers necessary to run the process, and the paid operating time.
Which of the following is considered a manufacturing cost for a manufacturing company?Manufacturing costs fall into three broad categories of expenses: materials, labor, and overhead. All are direct costs.
Which of the following would be considered direct labor?Direct labor refers to the salaries and wages paid to workers that can be directly attributed to specific products or services. It includes the cost of regular working hours, overtime hours worked, payroll taxes, unemployment tax, Medicare, employment insurance, etc.
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Which of the following would be considered a direct labor cost for manufacturing company?
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