Flashcard Set Preview
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| 1 |
SG&A
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Selling,
General and Administrative (SG&A) costs
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| 2 |
Manufacturing
Overhead
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Direct labor+Direct Materials
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| 3 |
direct materials (DM):
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materials and components that become part of the product
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| 4 |
direct labor (DL)
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Ø: physical labor that converts
materials & components into finished...
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| 5 |
direct costs
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•,
i.e., costs that we trace
directly to a specific product.
If materials...
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| 6 |
DM & DL
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DM & DL are variable costs – they
vary in proportion with production volume...
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indirect costs
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(overhead) are allocated to products, i.e., we use some (hopefully) sensible method...
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| 8 |
Period costs
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•costs
(all costs that are not product costs):
ØSelling, General and...
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| 9 |
§Fixed SG&A
costs –
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do not vary with sales volume (#units sold), e.g., rent for sales office, (non-production)...
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