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This document discusses direct costs and includes three figures related to direct costing methods. Figure 13.1 shows the elements of cost, including direct materials, direct labor, and other direct costs. Figure 13.2 illustrates different direct material costing methods. Figure 13.3 provides an example of a stores ledger account for tracking direct material costs.
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- 1. Copyright © 2020, 2017, 2010 Pearson Education, Inc. All Rights Reserved Chapter 13 Direct costs Part 4 Management accounting Accounting for Non-Accounting Students Tenth Edition
- 2. Copyright © 2020, 2017, 2010 Pearson Education, Inc. All Rights Reserved Figure 13.1 The elements of cost Source: Based on Chartered Institute of Management Accountants (2005). CIMA Official Terminology. Oxford: CIMA Publishers.
- 3. Copyright © 2020, 2017, 2010 Pearson Education, Inc. All Rights Reserved Figure 13.2 Direct material costing methods
- 4. Copyright © 2020, 2017, 2010 Pearson Education, Inc. All Rights Reserved Figure 13.3 Example of a stores ledger account