Manufacturing Accounts Q&A

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on September 19, 2022

1. Define manufacturing concern.

2. Define trading concern.

3. Define direct material.

4. Define direct labor cost.

5. Explain direct labor.

6. Explain indirect labor.

7. Define factory overhead.

8. What is prime cost?

9. What is conversion cost?

10. What is factory cost?

Frequently Asked Questions

What is a Manufacturing Account?

A Manufacturing Account is an accounting record of the costs associated with producing a product. This includes the direct costs of production, such as materials and labor, and indirect costs, such as factory overhead.

What services do Manufacturing Accountants offer?

Manufacturing Accounts provide businesses with a detailed record of the costs associated with producing a product. This information can be used to decide pricing, production, and marketing.

What services do Manufacturing Accountants offer?

What services do Manufacturing Accountants offer?

Are there any restrictions on using Manufacturing Accounts?

There are no restrictions on using Manufacturing Accounts. However, businesses should consult with their accountant to ensure they use the account in the most tax-efficient way.

What are the types of Manufacturing Accounts?

In a Manufacturing Account, there are three types of cost. It includes raw materials, finished goods, and work in progress.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

2 thoughts on "Manufacturing Accounts Q&A"

  1. Are the same CGM (cost of manufacturing) and COGS (cost of good sold) ?
    How to recognize these two cost .

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