we now find that we need to accumulate the costs (Direct material, Direct labor and Overhead costs) of specific jobs so that we can track how much that job (or product) costs us to manufacture (or to provide service if we are a service organization).
Discuss topic : Imagine you are the manager for a construction company building a custom home.
1) Can you give three examples of direct materials needed for building a house?
2) How does the builder count the direct labor cost to each house?
3) Give three examples of overhead cost for a construction company building custom homes? How do you assign the overhead costs to the custom houses built ( i.e. how are overhead costs accumulated and assigned)?
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