Business Technology For long test only

• Job Order Cost Sheet is for recording the merchandising cost. It is used by companies that use the Job Order Costing System. It is to allocate or record the price of products or services.
• Material requisition form- a detailed source document that tells the type and quantity of materials to be drawn from the storeroom. It identifies the job to which the cost of products will be charged.
• Employee Time Sheet - A spreadsheet that records the time and employee spent working on different task.
• Inventories of manufacturing companies?

  Raw Materials, Work in Process, Finished Goods, Maintenance repair operation (MRO)
• Raw materials inventory is the total cost of manufacturers' subassemblies, components, and supplies in stock but not currently in production.
• Direct Materials Inventory - Stock of materials in the company's hand that are yet to be used in the production process. They can be easily traced. They are directly involved.
• Indirect materials inventory - part of manufacturing process but are not integrated in the final product.
• Work-in-process inventory AKA Work-in-progress inventory is the total cost of unfinished goods in production at the end of each accounting period.
• finished good inventory - A total of manufacture good available in stock and are ready for purchase by vendors, retailers, and consumers.
• Maintenance, repair, and operation (MRO) are essential to the factory operation. MRO inventory is strictly for your consumption and is not for sale.
• production costs - costs incurred when a business manufactures goods.
• 3 elements of production costs?

  Direct materials costs, direct labor costs, factory overhead costs
• Direct material Costs - materials or supplies consumed during the manufacture of the product, it is directly connected to that product.
• Direct Labor Costs - the amount of effort and employee exerted to convert raw materials to finished goods.
• Factory overhead Costs also known as Manufacturing expenses
• Factory Overhead cost AKA manufacturing Costs include all production costs other than direct materials and direct labor.
• 2 types of Overhead costs?

  Fixed overhead costs

  Variable overhead costs
• 3 Elements of production Costs?

  Direct material costs - Materials consumed when manufactured

  Direct labor costs - effort by employees: raw material - finished goods

  Factory Overhead costs - costs that include all production costs except the first 2 costs
• Fixed overhead costs - The costs of the product does not change even though there's lots of products produce.
• Variable Overhead Cost - Cost that changes depending if the products change in quantity or the services is a lot.
• Prime costs is the sum of Direct Materials and Direct Labor costs.
• Conversion Costs is the sum of Direct Labor costs and Factory overhead cost.
• Marketing Costs are all the expenses a company spend to promote its products or services.
• Administrative Costs Costs that an organization incurs that are not directly tied with manufacturing, sales, and production.