Cost Definitions
Cost Data for Decisions
Manufacturing Costs
Cost Accounting Methods
Cost Accounting Reporting
100
sacrifice of resources
What is cost?
100
factor that causes or "drives" cost
What is a cost driver?
100
Expense assigned to products sold during a period
What is cost of goods sold?
100
metric that indicates how well an individual , business unit, product, firm, and so on, is working
What is a performance measure?
100
revenue-cost of goods sold on income statements. per unit, the gross margin equals sales price- full absorption cost per unit
What is gross margin?
200
Cost that is charged against revenue in an accounting period
What is expense?
200
Revenues that change in response to a particular course of action
What are differential revenues?
200
Product costs that can be feasibly identified with units of production
What are direct manufacturing costs?
200
Continuous process of measuring a company's own products, services, or activities against competitor's performance
What is benchmarking?
200
Sales price-variable costs per unit
What is contribution margin?
300
past, present, or future cash outflow
What is outlay cost?
300
Process of comparing benefits (Often measured in savings or increased profits) with costs associated with a proposed change within an organization
What is a cost-benefit analysis?
300
all production costs except direct labor and direct materials
What is manufacturing overhead?
300
In production or purchasing, each unit is purchased or produced just in time for its use
What is just-in-time method?
300
specific unit of an organization assigned to a manager who is held accountable for its operations and resources
What is a responsibility center?
400
Forgone benefit from the best (forgone) alternative course of action
What is opportunity cost?
400
financial plan of the revenues and resources needed to carry out activities and meet financial goals
What is a budget?
400
Materials that can be identified directly with the product at reasonable cost
What are direct materials?
400
a cost accounting system that provides measures at the work cell or process level and minimizes wasteful or unnecessary transaction processes
What is lean accounting?
500
With two or more alternatives costs that differ among or between alternatives
What is differential cost?
500
Costing method that first assigns costs to activities and then assigns them to products based on the products' consumption of activities
What is activity-based costing?
500
Sum of direct materials and direct labor
What are prime costs?
500
system that identified the costs of producing low-quality items, including rework, returns, and lost sales
What is cost of quality?
500
process of assigning indirect costs to products, services, people, business units, etc.
What is cost allocation?
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