An Estimate of the Cost of an Item That Includes

question 70

Short Answer

An estimate of the cost of an item that includes all the costs related to the procurement and use of an item, including any related costs in disposing of the item after it is no longer useful, is called what? _____________________.

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Definitions:

Process Costing

A costing methodology used in industries where production is continuous, assigning costs to masses of similar units.

Materials

Raw inputs or components that are used in the production of goods or delivery of services.

Conversion Costs

The combined costs of direct labor and manufacturing overheads, which are incurred to turn raw materials into finished goods.

Units in Process

An inventory classification representing products partially completed in the manufacturing process, often evaluated at the end of an accounting period.