The Process of Identifying Costs as Direct or Indirect Is

question 133

Short Answer

The process of identifying costs as direct or indirect is referred to as classifying costs by________________ .

Know the flow of costs in accounting systems, particularly how costs are accumulated and assigned in manufacturing.

Recognize the role and charging mechanism of direct materials, work in process, and finished goods in the cost accounting cycle.

Understand how factory labor costs, including direct and indirect (manufacturing overhead) labor costs, are accounted.

Grasp the treatment of manufacturing overhead costs, including pre-determined rates, application, and the adjustment of over/under applied overhead.

---

Definitions:

Environmental Impact Statement

A document that explains the significant effects of a proposed project on the environment.

Proposed Federal Action

Any action for which a Federal agency is considering implementing which may include new regulations, changes in policy, or government projects.

Clean Power Plan

A policy rule implemented by the Environmental Protection Agency aimed at reducing carbon dioxide emissions from power plants in the United States.

Carbon Dioxide Emissions

The release of CO2 into the atmosphere, primarily from burning fossil fuels, which contributes to global warming and climate change.