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.