Most cost accounting systems include in factory overhead all costs that are not traceable to a specific unit or lot of output. In such systems, the manufacturing costs directly traceable to a batch, a customer order, an entire production facility, a new product or product variation, or a strategic goal are combined in a single overhead classification, because none of these costs is viewed as being directly traceable to the product.
Most cost accounting systems include in factory overhead all costs that are not traceable to a specific unit or lot of output. In such systems, the manufacturing costs directly traceable to a batch, a customer order, an entire production facility, a new product or product variation, or a strategic goal are combined in a single overhead classification, because none of these costs is viewed as being directly traceable to the product.
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