Match the Following Terms to the Correct Label in the Figure

question 68

Short Answer

Match the following terms to the correct label in the figure below.​ a.A
b.B
c.C
d.D
e.E
-​phenotype

Differentiate between direct and indirect costs.

Identify cost components as prime costs or conversion costs.

Distinguish between product costs and period costs.

Calculate total manufacturing costs incurred.

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Definitions:

Absorption Costing

A method in accounting that involves integrating all costs related to manufacturing, namely direct materials, direct labor, and all variable and fixed overhead expenses, into the pricing of a product.

Fixed Overhead

Costs that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Period Cost

Any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets. A non-manufacturing cost that is expensed in the period in which it is incurred.

Special Order

A special order refers to a one-time or unusual request from a customer that can require unique production or ordering requirements outside of normal operations.