ACCT203 - Chapter One: Notes

Cost objects include

- customers - anything for which cost data is desired - organizational subunits / departments

A cost that can be easily and conveniently traced to a specific cost object is a(n) (1)? cost of that cost object, whereas costs that cannot be easily and conveniently traced to that specific cost object are (2)? costs.

(1) direct (2) indirect

A type of indirect cost incurred to benefit more than one cost object is a(n) ______ cost.

common

Costs that are shared by multiple cost objects in a company are known as ______ costs.

common

Materials that become an important component of the finished product whose cost can be easily and conveniently traced to the finished product are ? materials.

direct

Costs that can be easily and conveniently traced to a specific product are called ______ costs.

direct

Fantastic Furniture makes custom order couches. The material used to make a couch is a(n) ______ cost of the customer placing the order.

direct

A manufacturing cost that cannot be easily traced to a specific cost object is a(n) ? cost.

indirect

Direct materials and direct labor are both ______ costs.

manufacturing

The materials that go into the final product are called ? materials.

raw

A(n) ? ? is anything for which cost data are desired—including products, customers, plants, office locations, and departments.

Cost Object