ACG 204: Managerial Accounting Youtube Assignment: Cost Classification

ACG204 Principles of Managerial Accounting (rev 8/10/2016)

How it’s Made – Cost Classification

You Tube link for How it’s Made – Sneakers

https://www.youtube.com/watch?v=9OusAvgFfoc

Read Chapter 1 – pay attention to the criteria necessary to categorize costs as Direct vs. Indirect, Product vs. Period, Fixed vs. Variable

1. View the You Tube link posted above.

2. Identify at least 8 costs that are necessary to manufacture and sell the product in the video.

3. Use the table below to describe the cost and check off the correct categories. There must be at least 1 example of each category.

4. Be prepared to defend the categories you chose for each cost.

5. If your example is a product cost, indicate whether it is DM (Direct Material), DL (Direct labor), or MOH (Manufacturing Overhead).

6. ANSWERS MUST BE TYPED IN TO BE ACCEPTED. THIS WILL PROVE YOU COMPLETED THIS OUTSIDE OF CLASS AS PREPARATION FOR CHAPTER 1.

Description of cost	Product or Period	Direct or Indirect with respect to the sneakers being manufactured	Fixed or Variable with respect to the number of sneakers manufactured and sold
	Product (DM or DL or MOH)	Period	Direct	Indirect	Fixed	Variable
1
2
3
4
5
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8