Professional Documents
Culture Documents
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Cost Object
Illustration
Product
Service
Project
Customer
Activity
Department
Direct Costs
Parts
Indirect Costs
Electricity
Rent
Property
taxes
Plant administration expenses
Total Dollars
Total Dollars
Change in
Changewith
in
proportion
proportion
output with
Variable Costs
Variable Costs More output
output
= More cost
More output = More cost
Change
Change
inversely
with
inversely
with
Unchanged
in
Fixed Costs
output
output
relation
to output
Unchanged
in
More
Fixed Costs
More output
output == lower
lower
cost
relation to output
cost per unit
per
unit
Copyright 2015 Pearson Education
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and
Variable/Fixed
and variable
Direct and fixed
Indirect and variable
Indirect and fixed
cost objects
2.Obtaining information for planning and control, and
performance evaluation
3.Analyzing the relevant information for making
decisions
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TERMS to LEARN
Actual cost
Page 29
Average cost
Page 36
Budgeted cost
Page 29
Conversion costs
Page 46
Cost
Page 29
Cost accumulation
Page 29
Cost allocation
Page 30
Cost assignment
Page 30
Cost driver
Page 34
Cost object
Page 29
Page 43
Cost tracing
Page 30
Copyright 2015 Pearson Education
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TERMS to LEARN
Page 30
Page 39
Page 39
Page 38
Page 39
Page 38
Fixed costs
Page 32
Idle time
Page 47
Page 30
Page 39
Inventoriable costs
Page 39
Page 39
TERMS to LEARN
Manufacturing-sector companies
Page 38
Merchandising-sector companies
Page 38
Operating income
Page 44
Overtime premium
Page 47
Period costs
Page 39
Prime costs
Page 45
Product cost
Page 48
Relevant range
Page 35
Revenues
Page 39
Service-sector companies
Page 38
Unit cost
Page 36
Variable cost
Page 21
Work-in-process inventory
Page 38
Work in progress
Page 38
Copyright 2015 Pearson Education
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