Improving:feedback is also used by managers to support continuous process improvement.
Controlling: monitoring operating results and comparing actual results with the expected results by feedback.
panning, directing and decision making
direct materials cost: The cost of any material that is an integral part of the finished product.(wood)
direct labor: The cost of employee wages that is an integral part of the finished product.
factory oh: All factory overhead costs are indirect costs of the product. Some factory overhead costs include the following:Heating and lighting the factory,Repairing and maintaining factory equipment,Property taxes on factory buildings and land, Insurance on factory buildings,Depreciation on factory plant and equipment.
Prime costs, which consist of direct materials and direct labor costs
Conversion costs, which consist of direct labor and factory overhead costs
Product costs consist of manufacturing costs: direct materials, direct labor, and factory overhead.
Period costs consist of selling and administrative expenses.
Work in process inventory:costs for products not yet completed
A job order cost system provides product costs for each quantity of product that is manufactured (a job). Job order cost systems are often used by companies that manufacture custom products.
process cost system is by department (indistingable products)
predetermined fact oh rate: estimated total factry oh costs / estimated activity base(direct labor hours, machinery hours)
Cost behavior is the manner in which a cost changes as a related activity changes