Cost accounting outlines the key elements and types of costs involved in manufacturing a product. It discusses direct costs like raw materials and labor, as well as indirect manufacturing overhead costs. Manufacturing overhead includes indirect labor, materials, and expenses on the factory floor, as well as non-production overhead not located at the factory. The document also defines prime costs, different types of inventory, and how gross profit is calculated by subtracting cost of goods sold from total sales.
7. Production overhead is indirect material labor
and indirect expense that on the factory floor
Non production overhead is not at factory floor which is selling distribution and printing etc.
![Manufacturing cost
Direct labor
Direct material
Manufacturing overhead[ indirect expenses]](https://image.slidesharecdn.com/costaccounting-200922143206/85/Cost-accounting-4-320.jpg)
