Financial Accounting

Definition Work in progress includes goods that are partially completed, and are still in the production process. These are items that are mainly undergoing a certain process in the production cycle and are likely to be in-between places or different workstations. The items that are currently Work in Progress do not include raw materials or […]

Definition Direct materials can be referred to as the raw materials which are used to produce goods and services which the company manufactures for purposes of reselling. They are the costs that are directly associated with the manufacturing process, and therefore, they can easily be traced to the production process. Items that are listed as

What is Prime Cost? Prime cost is defined as the accumulation of all costs directly incurred during the manufacture of a product. Prime cost is also known as a direct cost, flat cost, or first cost. Prime cost includes all costs directly attributed to the production of output, and consists of expenses like direct material,

Distribution: Distribution cost is the sum of all expenses (direct and indirect) incurred by any company, firm, individual, or any other entity to deliver their products from the production department to the end consumer. Distribution costs are also known as distribution expenses and they are records in the income statement of the entity by using

Unit cost of Production: The unit cost of production is the total amount of expenses incurred by a company to produce a certain quantity of goods or services and then divide the total amount by the quantity produced. For example, the total cost of a cement company is $30,000 to produce 10,000 units, the unit