Summary Of Cost Classifications


Product
Cost
Period
Cost
Direct Materials (DM) Yes No
Direct Labor (DL) Yes No
Factory (Manufacturing) Overhead (MOH) Yes No
Selling, General, & Administrative Expenses (S,G,&A) No Yes



Prime
Cost
Conversion
Cost
Direct Materials (DM) Yes No
Direct Labor (DL) Yes Yes
Factory (Manufacturing) Overhead (MOH) No Yes
Selling, General, & Administrative Expenses (S,G,&A) No No
Prime Cost = DM + DL
Conversion Cost = DL + MOH
Variable
Cost
Fixed
Cost
Direct Material (DM) Yes No
Direct Labor (DL) Yes No
Factory (Manufacturing) Overhead (MOH) Yes Yes
Selling, General, & Administrative Expenses (S,G,&A) Yes Yes