【正文】 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Manufacturing Cost Concepts Financial Accounting Cost is a measure of resources used or given up to achieve a stated purpose. Managerial Accounting Product costs are the costs a pany assigns to units produced. 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill The Product Direct Materials Direct Labor Manufacturing Overhead Manufacturing Costs 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Direct Materials Those materials that bee an integral part of the product and that can be conveniently traced directly to it. Example: A radio installed in an automobile 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Direct Labor Those labor costs that can be easily traced to individual units of product. Example: Wages paid to automobile assembly workers 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Manufacturing costs that cannot be traced directly to specific units produced. Manufacturing Overhead Examples: Indirect labor and indirect materials Wages paid to employees who are not directly involved in production work. Examples: maintenance workers, janitors and security guards. Materials used to support the production process. Examples: lubricants and cleaning supplies used in the automobile assembly plant. 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Classifications of Costs Direct Materials Direct Labor Manufacturing Overhead Prime Cost Conversion Cost Manufacturing costs are often bined as follows: 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Nonmanufacturing Costs Marketing and selling costs . . . ?Costs necessary to get the order and deliver the product. Administrative costs . . . ?All executive, anizational, and clerical costs. 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Product Costs Versus Period Costs Product costs include direct materials, direct labor, and manufacturing overhead. Period costs are not included in product costs. They are expensed on the ine statement. Inventory Cost of Good Sold Balance Sheet Ine Statement Sale Expense Ine Statement 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Cost Classifications for Predicting Cost Behavior How a cost will react to changes in the level of business activity. ?Total variable costs change when activity changes. ?Total fixed costs remain unchanged when activity changes. 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Total Variable Cost Your total long distance telephone bill is based on how many minutes you talk. Minutes Talked Total Long Distance Telephone Bill 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Variable Cost Per Unit Minutes Talked Per Minute Telephone Charge The cost per long distance minute talked is constant. For example, 10 cents per minute. 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Total Fixed Cost Your monthly basic telephone bill probably does not change when you make more local calls. Number of Local Calls Monthly Basic Telephone Bill 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Fixed Cost Per Unit Number of Local Calls Monthly Basic Telephone Bill per Local Call The average cost per local call decreases as more local calls are made. 169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Cost Classifications for Predicting Cost Behavior B e h a v i o r o f C o s t ( w i t h i n t h e r e l e v a n t r a n g e )C o s t I n T o t a l P e r U n i tV a r i a b l e T o t a l v a r i a b l e c o s t c h a n g e s V a r i a b l e c o s t p e r u n i t r e m a i n sa s a c t i v i t y l e v e l c h a n g e s . t h e s a m e o v e r w i d e r a n g e so f a c t i v i t y .F i x e d T o t a l f i x e d c o s t r e m a i n s F i x e d c o s t p e r u n i t g o e st h e s a m e e v e n w h e n t h e d o w n a s a c t i v i t y l e v e l g o e s u p . a c t i v i t y l e v e l c h a n g e s .169。 The McGrawHill Companies, Inc., 2023 Irwin/McGrawHill Cost Behavior Fixed costs are usually