Order Now Order Now
Login / SignUp
Order Now

Home Free Essays

>>

All Subjects

>>

Business And Management

>>

Manufacturing Account

Manufacturing Account

Download

Manufacturing Account

[Name of the Writer]

[Name of the Institution]

Manufacturing Account

Management accounting is an important branch of accounting that deals with the financial records and resources within the organization. This branch of accounting helps significantly in the maintenance of financial records and provides advice and suggestions for the development of the organization. The significance of the implication of costs in manufacturing accounting cannot be denied in any way.

Manufacturing Costs refer to those costs or expenses incurred to any organization during the production of their finished goods. In order to take the business to heights and make a venture successful, an organization should take the manufacturing costs very seriously (LeBlanc, et al., 2014). If a manufacturer keeps these elements in mind, he or she can make their business highly competitive and profitable one in the market.

There manufacturing costs in any industry comprise of three major factors or parts (Thomas, & Gilbert, 2014);

Direct Material Cost

Direct Labor Costs

Factory Overheads

Direct Material Costs:

The costs that incur on the making of a product, especially at the material of that product are known as Direct Material Cost. These costs majorly include the charges incurred over the raw material used for the production of a finished product.

Direct Labor Cost:

The cost incurred to pay the wages of labor who contributed to the production of a unit.

Factory Overheads:

The expenses incurred other than the material and labor cost on the production of a unit like utility bills etc.

The manufacturing costs are usually displayed in the income statement as a separate line or entity. These manufacturing costs can also be referred to as the “Product Cost”. The cost of a product or Product Cost per unit can be calculated by using a simple formula:

Product Unit Cost = (Total Direct labor + Total Direct material + Consumable Supplies + Total Allocated Overhead) ÷Total Number of Units

References

LeBlanc, S., Yee, S. K., Scullin, M. L., Dames, C., & Goodson, K. E. (2014). Material and manufacturing cost considerations for thermoelectrics. Renewable and Sustainable Energy Reviews, 32, 313-327.

Thomas, D. S., & Gilbert, S. W. (2014). Costs and cost-effectiveness of additive manufacturing. NIST Special Publication, 1176, 12.

More Subjects

Education

(5614)

English

(2294)

Business And Management

(1760)

Healthcare And Nursing

(1684)

Psychology

(929)

History And Anthropology

(743)

Sociology

(572)

IT

(446)

Education

(429)

Finance, Accounting And Banking

(419)

Philosophy

(347)

Political Science

(310)

Law And International Law

(308)

HRM

(300)

Economics

(288)

Biology And Life Sciences

(267)

Literature

(249)

Marketing And PR

(238)

Culture

(140)

Environmental Science

(109)

Geography

(92)

Statistics

(64)

Maths

(53)

International Relations

(44)

Physics

(30)

Chemistry

(25)

Capstone

(8)

Project Management

(8)

Reflective Thinking

(7)

Critical Review

(3)

Linguistics

(3)

Critical Appraisal

(2)

BUS 2090

(2)

English 12 Drama

(1)

Business Information Technology

(1)

Operational Plan

(1)

Corporate Finance

(1)

L2 Photography And Design

(1)

Food Nutrition

(1)

Leadership

(1)

Nursing

(1)

MBA

(1)

Social Enterprise Project

(1)

Government

(1)

Our tools

Essay typer Grammar Checker Plagiarism Checker Citation Generator

Useful Links

Free Essays About Blog

Contact me

info@freeessaywriter.net

If you have any queries please write to us

Join our mailing list

Invalid Email Address!
Thank you for joining our mailing list

Please note that some of the content on our website is generated using AI and it is thoroughly reviewed and verified by our team of experienced editors. The essays and papers we provide are intended for learning purposes only and should not be submitted as original work.

@ All Rights Reserved 2023 info@freeessaywriter.net

Privacy Policy Terms of Service Use Contact
Back to top