Question

For each product cost identified, describe how you would track the cost? Would you track it...

For each product cost identified, describe how you would track the cost? Would you track it by individual job, production step, activity, general factory overhead, etc.?

Product Cost

Raw materials

Supplies

Freight & Shipping

Repairs & Maintenance

Income Tax

Please explain your answer for each.

Business   Accounting   
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Homework Answers

Answer #1
Product cost Track
Raw material Individdual job Raw material is a cost directly associated with product hence individually iddentified.
Supplies Production step Supplies is a cost whch cannot be identified with qquantum homw much is used individually rather it can be measured in quantum for one production lot.
Freight and shipment Activity Frieght and shipments is a cost which can be identified in quantum for the particualr shipments consisiting of number of items. Thus, cost driver for such cost is number of shipments.
Repairs and Maintenance General factory Overheads These cost cannot be identified for product, activity or one production run. These are general factory overheads
Income Tax NA
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