[Verse 1] Direct costs trace precisely to the product you create Materials and labor hours with no need to estimate Indirect costs lurk in shadows, overhead that spreads around Fixed costs stay steady monthly, variables shift up and down [Chorus] Classify and categorize, dissect each dollar's role Direct-indirect, fixed-variable, product-period whole ABC your activities, standards set the pace Variances reveal the truth behind each costing case [Verse 2] Job costing tracks each custom order, unique from start to end Process costing flows through stages where identical units blend Activity-based costing digs deeper than the rest Finding true cost drivers puts your pricing to the test [Chorus] Classify and categorize, dissect each dollar's role Direct-indirect, fixed-variable, product-period whole ABC your activities, standards set the pace Variances reveal the truth behind each costing case [Verse 3] Standard costs become your benchmark, actual costs the game Price variance shows material changes, quantity does the same Efficiency measures labor hours, spending tracks the overhead Volume variance splits the difference when production levels spread [Bridge] Joint products share the same process until they split apart By-products tag along for pennies, allocation is an art Service departments need their costs distributed down the line Sequential, direct, or reciprocal methods keep it fine [Chorus] Classify and categorize, dissect each dollar's role Direct-indirect, fixed-variable, product-period whole ABC your activities, standards set the pace Variances reveal the truth behind each costing case [Outro] From raw materials to finished goods, every penny tracked Cost accounting tells the story, profitability backed
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