Standard Cost Accounting May Be Used with Either a Job

question 47

True/False

Standard cost accounting may be used with either a job order cost system or a process cost system.

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Definitions:

Indirect Labor

Labor costs associated with the production process but not directly working on the product, such as supervisors, maintenance, and cleaning staff.

Product Cost

The total costs associated with producing a product, including direct materials, direct labor, and manufacturing overhead.

Period Cost

Expenses incurred by a business that are not directly tied to the production process, such as marketing, administration, and sales costs, which are expensed in the period in which they occur.

Advertising Fees

Costs associated with promotional activities to market goods or services, including media buys, production of advertising materials, and related expenses.