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In which classification would the wages of a factory payroll clerk be classified? a) raw materials b) indirect labour c) period cost d) direct labour 46. Which one of the following is NOT a manufacturing cost? 47. What criteria must be met in order to consider the work of factory employees to be direct labour? 48. Which one of the following is classified as direct labour? 49. In what category ...
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ADVERTISEMENTS: Read this article to learn about the three important elements of cost,, (1) Material, (2) Labour, and (3) Expenses. 1. Material: Material may be classified into direct material and indirect material. Direct Material: CIMA defines material cost as "the cost of commodities supplied to an undertaking." All materials, which becomes an integral part [.]
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A unique selling proposition (USP, also seen as unique selling point) is a factor that differentiates a product from its competitors, such as the lowest cost, the highest quality or the firstever product of its kind. A USP could be thought of as "what you have that competitors don''t."
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The cost of sales line item appears near the top of the income statement, as a subtraction from net sales. The result of this calculation is the gross margin earned by the reporting entity. The various costs of sales fall into the general subcategories of direct labor, direct materials, and overhead and may also be considered to include the cost of the commissions associated with a sale.
Cost Terminology. Learning Objective. Understand the terms used for costing purposes. Question: Much of what we discuss in this book relates to companies that manufacture products, such as Nike and Apple, and terminology is a key component of accounting for manufacturing companies. The challenge is in classifying costs correctly for items such as production materials, production labor ...
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