Briefly Define What Is Meant by a Product

question 186

Essay

Briefly define what is meant by a product.Explain the characteristics that would define a good and a service.Give an example of each.

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Definitions:

Cost Of Goods Manufactured

The total production cost (including materials, labor, and overhead) of goods that were completed during a specific accounting period.

Direct Materials

Raw materials that are directly incorporated into a finished product and can be directly attributed to the product.

Manufacturing Overhead

All indirect costs associated with the production process of a company, including utilities, depreciation, and salaries of non-direct labor.

Work In Process

Inventory that is currently being manufactured but is not yet complete.