FCSE 3120 Lecture Notes - Lecture 35: Opportunity Cost, Variable Cost, Fixed Cost

• School: UCM
• Department: Family and Consumer Sciences Education
• Course: FCSE 3120
• Professor: Gremaud

Document Summary

Raw materials that become an integral part of the product and that can be conveniently traced directly to it. Those labor costs that can be easily traced to individual units of product. Manufacturing costs that cannot be easily traced directly to specific units produced. Product costs include direct materials, direct labor, and manufacturing overhead. Period costs include all selling costs and administrative costs. Cost behavior refers to how a cost will react to changes in the level of activity. A cost that varies, in total, in direct proportion to changes in the level of activity. In some cases your total texting bill is based on how many texts you send. In some cases the cost per text sent is constant at constant cost per text. A cost that remains constant, in total, regardless of changes in the level of the activity.