ECON 1 Lecture Notes - Lecture 2: Accounts Payable, Share Capital, Current Liability
Document Summary
Post-discussion of task 3 and discussion of learning goals. Cash (a-: december 29, december 30, december 31. Learning goals from 2-3 chapter (bihimani book (ma)) Cost object-is anything for which a separate measurement of costs is desired. Cost assignment- 1)tracing accumulated costs to a cost object. Cost tracing- assigning of direct costs to the chosen cost object. Cost allocation-assigning of indirect costs to the chosen cost object. Direct costs- cost that can be traced easily to the object, e. g new material. Indirect costs- cost that cannot be traced easily to the object, e. g light for production. Cost driver- any factor that affects total cost. Variable costs- cost that changes in proportion to changes in activity/volume. Fixed costs- cost that doesn"t change despite to changes in activity/volume. Unit costs- total cost divided by number units. Overhead costs/indirect manufacturing costs- cost of staying in business, e. g rent, utilities, insurance. Product costs- sum of the cost assigned to a product (assigning may vary)
