Define and Discuss TMS

question 43

Essay

Define and discuss TMS.

---

Definitions:

Equivalent Units

A concept used in cost accounting to express the amount of goods or services produced in terms of the number of complete units.

Materials

The raw items and components used in the production of goods.

Process Costing

An accounting methodology used for homogeneous products, attributing costs to units of product through an average or a similar method.

Conversion Costs

The combined costs of direct labor and manufacturing overhead expenses, representing the costs necessary to convert raw materials into finished goods.