tailieunhanh - Lecture Managerial accounting - Chap 2: Managerial accounting and cost concepts

In this chapter we explain how managers need to rely on different cost classifications for different purposes. The four main purposes emphasized in this chapter include preparing external financial reports, predicting cost behavior, assigning costs to cost objects, and decision making. | Managerial Accounting and Cost Concepts Chapter 02 Chapter 2: Managerial Accounting and Cost Concepts. In this chapter we explain how managers need to rely on different cost classifications for different purposes. The four main purposes emphasized in this chapter include preparing external financial reports, predicting cost behavior, assigning costs to cost objects, and decision making. The Product Direct Materials Direct Labor Manufacturing Overhead Classifications of Manufacturing Costs Manufacturing costs are usually grouped into three main categories: direct materials, direct labor, and manufacturing overhead. These costs are incurred to make a product. Direct Materials Raw materials that become an integral part of the product and that can be conveniently traced directly to it. Example: A radio installed in an automobile Direct materials are raw materials that become an integral part of the finished product and whose costs can be conveniently traced to it. Examples include the .