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36 Cards in this Set
- Front
- Back
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Amount of cash or cash equivalent sacrificed for goods and/or services expected to bring current or future benefit to org |
Cost |
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Expired costs are called ______. |
Expenses |
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Revenue per unit |
Price (Price=revenue) |
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Any item like products, customers, depts, projects, etc, for which costs are measured and assigned |
Cost object |
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The way costs are measured and recorded; tells the company what was spent |
Accumulating costs |
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The way that a cost is linked to some cost object; tells a company how costs were assigned to cost objects (why the money was spent) |
Assigning costs |
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Costs that can be easily and accurately traced to a cost object |
Direct costs |
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Costs that can’t be easily and accurately traced to a cost object |
Indirect costs |
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When an indirect cost is assigned using a reasonable and convenient method |
Allocation |
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Costs that vary in direct proportion to changes in output within the relevant range |
Variable costs |
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Costs that are constant within the relevant range as the level of output increases or decreases |
Fixed costs |
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The benefit given up when one alternative is chosen over another |
Opportunity cost |
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Goods produced by converting raw materials thru use of labor and indirect manufacturing resources |
Products |
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Total product cost/# of units produced |
Per-unit product cost |
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Direct materials + direct labor |
Prime cost |
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Direct labor + MOH |
Conversion cost |
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Costs that are not product costs (all areas of value chain except for production) |
Period costs |
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Tasks or activities performed for a customer or by a customer using the org’s products or facilities |
Services |
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Org that produces tangible products |
Manufacturing org |
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Org that produces intangible products |
Service org |
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Costs of producing a product in a manufacturing firm or of acquiring a product in a merchandising firm and prepping it for sale |
Product (manufacturing) costs |
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Formula- DM + DL +MOH |
Total product cost |
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Materials that are part of final product and can be directly traced to goods or services being produced |
Direct materials |
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Formula- DM + DL |
Prime cost |
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Formula- DL + MOH |
Conversion cost |
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Costs that are not product costs (all areas of value chain except for production); not assigned to part or whole of products but selling and admin expenses in incurred period |
Period costs |
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Costs necessary to market, distribute, service product or service |
Selling costs |
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Costs associated with R&D and general admin of org that can’t reasonably be assigned to either selling or production; expenses on income stmt |
Administrative costs |
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Total product cost of goods completed during current period; transfer to finished goods |
Cost of goods manufactured |
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Beg inv + Pur - End inv = |
Dir material used in production |
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Cost of partially completed goods that are still being worked on at end of period |
Work in process |
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Total product cost of goods sold during period |
Cost of goods sold |
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COGM + Beg inv (FG) - End inv (FG) = |
COGS |
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Price x units sold = |
Sales revenue |
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Sales rev - COGS = |
Gross margin |
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Gross margin - Selling & admin= |
Operating income |
