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Prior department costs behave the same as direct materials, which are typically added at the start of production. They are treated separately because they represent the accumulation of costs from previous departments rather than the receipt of materials from the stores area. It is helpful to separate prior department costs from other costs because the manager of the department receiving the transferred units has no control over the costs incurred in prior departments. Thus, the prior department costs are not useful for evaluating the performance of the manager of the department receiving the units.
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What is direct material cost?
This is the cost of materials which become part of the finished product.
What are Direct material costs in pharmaceuticals?
The cost of direct materials varies in pharmaceuticals. The rate you pay depends on how much you purchase and from what vendor you use when you make purchases.
What does EPGA Treasury 310 mean?
It is unclear what the abbreviation EPGA means on the treasury 310 check is. The treasury 310 check is a direct deposit check from the Department of Treasury. EPGA is typically the subsection of the department that it was issued from. For example, AGRI is the Department of Agriculture.
Why are the standard direct labor and direct materials cost based on actual case production volume rather than planned cases production?
Because they think they will get more money
What is an example of how a standard cost is established?
in a factory that produces personal computers, standard costs are often used for direct materials, direct labor, and variable overhead, at the unit level. Resource usage that can be traced exactly to what is to be produced is referred to as direct.
