COB 242 Chapter Notes - Chapter 2: Dependent And Independent Variables, Contribution Margin, Sunk Costs
18 Jan 2017
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Cost object: anything for which cost data are desired. Direct cost: a cost that can be easily and conveniently traced to a specific cost object. Indirect cost: a cost that (cid:272)a(cid:374)"t be easily and conveniently traced to a specific cost object. Common cost: a cost that is incurred to support a number of cost objects but cannot be traced to the individually. Raw materials: materials that go into the final product. Direct materials: the materials that become an integral part of the finished product and whose costs can be conveniently traced to the finished product. Direct labor: labor costs that can be easily traced to individual units of product. Indirect labor: can only be traced at a great cost. Product costs: include all costs involved in acquiring or making a product. Inventorial costs: another name for product costs because they are initially assigned to inventories. Product cost = direct materials + direct labor + manufacturing overhead.
