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Period costs |
Costs treated as costs of the period |
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Prime cost |
the total cost of direct material, direct labor and direct expenses |
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Prime cost percentage rate |
Estimated overhead divided by the estimated prime cost. The result is expressed as a percentage. |
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Process costing |
A costing method applied where a product passes through many separate stages of manufacture. There is a continuous flow of identical products. |
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Product cost |
Cost assigned to products and services |
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Production cost |
Cost that is incurred in manufacturing goods. It is prime cost plus absorbed production overhead |
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Production volume ratio |
Actual production in standard hours divided by budgeted standard hours. The result is expressed in percentage. |
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Profit |
Sales minus total cost. It is also contribution minus fixed cost. Also referred as income |
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Profit on contracts |
Also called attributable profit. It is that proportion of the total currently estimated profit on the contract which is relative to the work done at the accounting date. |
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