Briefly define and discuss the terms in each of the pairs that follow.A. Direct and indirect costsB. Direct materials and indirect materialsC. Manufacturing overhead and direct labor
What will be an ideal response?
A. Direct costs are logically and practically related (i.e., easily traceable) to a particular cost object. An indirect cost, on the other hand, is not. Whether a cost is direct or indirect depends on the cost object under consideration. A cost may be easily traceable to a company, for example, but not easily traced to a department of that firm.
B. Direct materials form an integral part of the finished product and, at the same time, are easily traced to that product. Indirect materials, which are part of manufacturing overhead, generally do not meet these guidelines. Note, though, that some indirect material may be easily traced to the product (e.g., five squirts of wood glue in a piece of furniture) but it may be too costly to do so.
C. Manufacturing overhead consists of indirect materials, indirect labor, plant depreciation, factory utilities, and other factory-related costs. This cost component reflects all manufacturing costs other than direct materials and direct labor. Direct labor, in contrast, consists of wages of those employees who work directly on the goods in production (machine operators, assembly-line workers, and so forth).
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What is the sales job classification and responsibility of an employee who processes purchases over the phone?
What will be an ideal response?
_________ were created to guide employers in their efforts to comply with federal laws concerning all employment decisions, and especially the selection process.
A. Equal employment tests B. Selection modules C. Guidance principles D. Employment norms E. Uniform guidelines
An effective materials-handling system:
a. increases the number of stages and participants in the supply chain. b. moves inventory into, within, and out of a warehouse quickly with minimal handling. c. helps firms maintain their inventory at the highest levels possible. d. enables firms to increase the number of people handling their raw materials, supplies, and components.
Which one of the following statements about capacity cushions is BEST?
A) Companies with flexible flow processes tend to have small capacity cushions. B) Companies with high capital costs tend to have large capacity cushions. C) Companies that have considerable customization tend to have larger capacity cushions. D) Constant demand rates require larger-capacity cushions.