Notes

Chapter 1
(Management Functions)
1. Planning - Adds value to the business, Maximizes short term profit and market share.
2. Directing - Produces a smooth running operative, Implements planned objectives, coordinates diverse activites and HR.
3. Controlling - Keeping activities on track, Determine whether goals are met, May use an informal or formal system of evaluations.

(Manufacturing Costs)
1. Direct Materials - Raw materials that can be directly associated with the making of the product. i.e. in an instance of making a car, the wheels are considered direct materials.
2. Direct Labor - Work of factory employees that can be directly associated with the making of the product. .i.e. in an instance of making a football, the person that cuts out the leather can be plaved under Direct Labor.
3. Manufacturing Overhead - Costs indirectly associated with the making of the product. .i.e Cleaners in the factory are considered under indirect labor and lubricants for a car are considered under indirect materials. *indirect labor and indirect materials are under MOH*

(Product vs. Period Costs)
1. Product Costs are also known as Manufacturing Costs, (DM, DL, and MOH), *recorded in an inventory account labelled "RAW MATERIALS INVENTORY" *
2. Period Costs includes all selling and administrative expenses, such as, Advertising Costs. *recorded to expense as incurred*

(Calculations)
1. Total Manufacturing Costs = DM + DL + MOH
2. Beginning RM Inventory + RM Purchases = RM Available - Ending RM Inventory = DM Used
3. Beg, WIP Inv. + Total MC = Total WIP - End. WIP Inv. = COGM
4.