This document discusses cost accounting concepts in manufacturing. It explains that manufacturing costs can be divided into three main groups: material costs, labor costs, and manufacturing overheads. Material costs include direct material costs and indirect material costs. Labor costs include direct labor costs and indirect labor costs. Manufacturing overheads include all indirect costs of the manufacturing process excluding direct material and labor costs. The document also outlines additional cost concepts that will be covered in the next class, including fixed and variable costs, prime costs, total manufacturing costs, unit cost, and manufacturing cost calculations.