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Since the two concepts are closely associated and can sometimes be confused, some theorists suggest that it is helpful to consider as a stimulus that causes goal-directed behaviour and to view as a response to events that are related to
Important goals.
Raw Materials
Basic materials that are used in the production process to manufacture goods, undergoing transformation into finished products.
Customer Specifications
Detailed requirements provided by a customer regarding how a product or service should perform or be designed.
Job Order Cost System
A type of cost accounting system that provides for a separate record of the cost of each quantity of product (job) that is manufactured.
Conversion Costs
The combined costs of direct labor and manufacturing overhead, representing the expenses necessary to convert raw materials into finished goods.
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