Manacc
Absorption Costing
a costing method that includes all manufacturing costs in the cost of a unit od product
Standard Cost
a predetermined cost estimate that should be attained
Cost Driver
any factor that has an effect of changing the level of total cost
Cost Object
anything to which costs are assigned for some management purpose
Cost Object
anything to which costs are attached or related
Future Cost
budgeted costs that are expected to be incurred in a future period
Work In Process Inventory
cost associated with goods partially completed at the end of the period
Allocation Bases
cost drivers used to allocate costs
Discretionary Cost
cost for which the size or the time of incurrence is a matter of choice
Raw Materials Inventory
cost of all raw material and production supplies that have been purchased but not used at the end of the period
Finished Goods inventory
cost of completed goods that have not been sold at the end of the period
Noncontrollable Cost
cost over which a given manager does not have a significant influence
Committed Cost
cost that is inevitable consequence of a previous commitment
Controllable Cost
cost that is subject to significant influence by a particular manager within the time period under consideration
Marginal Costs
costs associated with the next unit or the next project or incremental cost associated with an additional project as opposed to the next discrete unit
Cost Pool
costs collected in meaningful groups
Information Costs
costs of obtaining information
Value-Added Costs
costs result from activities that are necessary to satisfy the requirements of the consumer
Indirect Cost
costs that are not directly traceable to the cost object
Variable Costs
costs that change directly in proportion to changes in activity (volume).
Direct Cost
costs that economically traced to a single cost object
Ordering Costs
costs that increase with the number of orders placed for inventory
Out-of-pocket Costs
costs that must be met with a current expenditure or cash outlay
Fixed Costs
costs that remain unchanged for a given time period regardless of change in activity (volume)
Historical Costs
costs that were incurred in a past period
Incremental Costs
difference in cost between two or more alternatives
Direct Costing
fixed costs are charged against revenue as incurred and are not assigned to specific units of product manufactured
Relevant Costs
future costs that are different under one decision alternative than under another decision alternative
Sunk Costs
past costs that have been incurred and are irrelevant to a future decision
Cost Assignment
process of assigning costs to cost pools or from cost pool to cost objects
Cost Allocation
the assignment of indirect costs to cost pools
Opportunity Costs
the value of the best alternative foregone as the result of selecting a different use of resource or by choosing a particular strategy
Cost Assignment
the way that a cost is linked to a cost object
Cost Accumulation
the way that costs are measured and recorded
Budgeted Cost
used to represent the expected/planned cost for a given period
Cost
value foregone or sacrifice of resources for the purpose of achieving some economic benefit which will promote the profit-making ability of the firm.
