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    Cost Accounting 2

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    Anonymous aRheeM
    The document lists and defines 25 important cost accounting terms, including direct and indirect costs, fixed and variable costs, conversion costs, cost objects, cost behavior, allocation bases, period costs, product costs, prime costs, manufacturing overhead, opportunity costs, and job-order costing. It provides concise definitions for each term to explain their meaning in cost accounting and cost management. The terms cover different types of costs involved in acquiring, making, and selling products as well as key concepts used in analyzing and assigning costs.

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    Cost Accounting 2

    Uploaded by

    Anonymous aRheeM
    51 views2 pages
    The document lists and defines 25 important cost accounting terms, including direct and indirect costs, fixed and variable costs, conversion costs, cost objects, cost behavior, allocation bases, period costs, product costs, prime costs, manufacturing overhead, opportunity costs, and job-order costing. It provides concise definitions for each term to explain their meaning in cost accounting and cost management. The terms cover different types of costs involved in acquiring, making, and selling products as well as key concepts used in analyzing and assigning costs.

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    The document lists and defines 25 important cost accounting terms, including direct and indirect costs, fixed and variable costs, conversion costs, cost objects, cost behavior, allocation bases, period costs, product costs, prime costs, manufacturing overhead, opportunity costs, and job-order costing. It provides concise definitions for each term to explain their meaning in cost accounting and cost management. The terms cover different types of costs involved in acquiring, making, and selling products as well as key concepts used in analyzing and assigning costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    51 views2 pages

    Cost Accounting 2

    Uploaded by

    Anonymous aRheeM
    The document lists and defines 25 important cost accounting terms, including direct and indirect costs, fixed and variable costs, conversion costs, cost objects, cost behavior, allocation bases, period costs, product costs, prime costs, manufacturing overhead, opportunity costs, and job-order costing. It provides concise definitions for each term to explain their meaning in cost accounting and cost management. The terms cover different types of costs involved in acquiring, making, and selling products as well as key concepts used in analyzing and assigning costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Jasvir Kaur Dol Cost Accounting and Cost Management 2

    BSA 3A MWF/3:00-4:00pm/ RM519

    Cost Terms:

    1. Conversion Cost
    - Direct labor cost plus manufacturing overhead cost.
    2. Cost Behavior
    - The way in which cost reacts to changes in the level of activity.
    3. Cost Object
    - Anything for which cost data are desired.
    4. Dependent Variable
    - A variable that responds to some casual factor; total cost is the dependent variable, as
    represented by the letter Y, in the equation Y=a+bX.
    5. Direct Cost
    - A cost that can be easily and conveniently traced to a specified cost object.
    6. Direct Labor
    - Factory labor costs that can be easily traced to individual units of product. Also called
    touch labor.
    7. Direct Materials
    - Materials that become an integral part of a finished product and whose costs can be
    conveniently traced to it.
    8. Fixed Cost
    - A cost that remains constant, in total, regardless of changes in the level of activity
    within the relevant range. If a fixed cost is expressed on a per unit basis, it varies
    inversely with the level of activity.
    9. High-Low Method
    - A method of separating a mixed cost into its fixed and variable elements by analyzing
    the change in cost between the high and low activity levels.
    10. Independent Variable
    - A variable that acts as a casual factor; activity is the independent variable, as
    represented by the letter X, in the equation Y=a+bX.
    11. Indirect Cost
    - A cost that cannot be easily and conveniently traced to a specified cost object.
    12. Indirect Labor
    - The labor costs of janitors, supervisors, materials handlers, and other factory workers
    that cannot be conveniently traced to particular products.
    13. Indirect Materials
    - Small items of material such as glue and nails that may be integral part of a finished
    product, but whose costs cannot be easily or conveniently traced to it.
    14. Least-squares Regression Method
    - A method of separating a mixed cost into its fixed and variable elements by fitting a
    regression line that minimizes the sum of the squared errors.
    15. Manufacturing Overhead
    - All manufacturing costs except direct materials and direct labor.
    16. Opportunity Cost
    - The potential benefit that is given up when one alternative is selected over another.
    17. Period Cost
    - Costs that are taken directly to the income statement as expenses in the period in
    which they are incurred or accrued.
    18. Product Cost
    - All costs that are involved in acquiring or making a product. In the case of
    manufactured goods, these costs consist of direct materials, direct labor, and
    manufacturing overhead.
    19. Prime Cost
    - Direct materials cost plus direct labor cost.
    20. Raw Materials
    - Any materials that go into the final product.
    21. Selling Costs
    - All costs that are incurred to secure customer orders and get the finished product or
    service into the hands of the customer.
    22. Job-Order Costing
    - A costing system used in situations where many different products, jobs, or services
    are produced each period.
    23. Variable Cost
    - A cost that varies, in total, in direct proportion to changes in the level of activity. A
    variable cost is constant per unit.
    24. Allocation Base
    - A measure of activity such as direct labor-hours or machine-hours that is used to
    assign costs to cost object.
    25. Sunk Costs
    - A cost that has already been incurred and that cannot be changed by any decision
    made now or in the future.

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