Term
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Definition
| the amount of cash or cash equivalent sacrificed for goods and services that are expected to bring a current or future benefit to the organization |
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Definition
| when costs are used up they become this |
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Term
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Definition
| revenue per unit (different than cost) |
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Term
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Definition
| is the way that a cost is linked to some cost object |
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Term
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Definition
| is any item such as a product, customer, dept, etc for which costs are measured and assigned |
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Term
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Definition
| the costs that can easily and accurately be traced to a cost object |
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Definition
| costs that cannot be easily and accurately traced to a cost object (ex: developing new recipes) |
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Term
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Definition
| means that an indirect cost is assigned to a cost object by using a reasonable and convenient method |
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Term
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Definition
| increases as total output and vice versa |
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Term
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Definition
| a cost that does not increase as total output increases |
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Term
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Definition
| the benefit given up or sacrificed when one alternative is chosen over another |
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Term
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Definition
| are the costs both direct and indirect of producing in a manufacturing firm or of acquiring a product in a merchandising firm and preparing it for sale |
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Term
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Definition
| are those materials that are a part of the final product and can be directly traced to the goods being produced |
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Term
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Definition
| is the labour that can be directly traced to the goods being produced |
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Term
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Definition
| all product costs other than direct materials and direct labour. are put into this category if the cost cannot be directly traced to the cost object of interest (ex: unit of production) |
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Term
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Definition
| equals the sum of direct materials, direct labour, and manufacturing overhead |
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Term
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Definition
| total product cost divided by number of unites produced |
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Term
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Definition
| sum of direct materials and direct labour |
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Term
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Definition
| sum of direct labour and manufacturing overhead |
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Term
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Definition
| are all the costs that are not product costs |
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Term
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Definition
| the costs necessary to market, distribute and service a product or service (salaries, commission, advertising etc) |
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Term
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Definition
| all costs associated with research, development, and general administration of the organization that cant be easily associated with selling or production |
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Term
| cost of goods manufactured |
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Definition
| represents the total product cost of goods completed during the current period and transferred to finished goods inventory |
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Term
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Definition
| abbreviated as WIP is the cost of the partially completed goods that are still on the factory floor at the end of the time period |
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Term
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Definition
| represents the cost of goods that were sold during the period and, therefore, transferred from finished goods inventory on the balance sheet to cost of goods sold on the income statement |
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Term
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Definition
| is the difference between sales revenue and cost of goods sold |
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Term
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Definition
| is the general term fir describing whether a cost changes when the level of output changes |
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Term
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Definition
| is a casual factor that measures the output of the activity that causes costs to change |
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Term
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Definition
| is the range of output over which the assumed cost relationship is valid for the normal operations of the firm |
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Term
| discretionary fixed costs |
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Definition
| fixed costs that can be changed or avoided relatively easily at managements discretion |
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Term
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Definition
| are fixed costs that cannot be easily changed (warehouse space, etc) |
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Term
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Definition
| a cost that has a variable and fixed component. on a graph the Y-intercept represents the fixed costs while the slope is the variable rate |
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Term
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Definition
| displays a constant level of cost for a range of output and then jumps to a higher level of cost at some point |
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Term
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Definition
| is a method of separating mixed costs into their variable and fixed components by using just the high and low data points |
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Term
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Definition
| is a way to see the cost relationship by plotting data points on a graph |
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Term
| method of least squares (regression) |
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Definition
| is a statistical way to find the best fitting line through a set of data points |
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Term
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Definition
| is the point where total revenue equals total cost (zero profit) |
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Term
| contribution margin income statement |
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Definition
| the income statement format that is based on the separation of costs into fixed and variable components |
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Term
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Definition
| is the difference between sales and variable expense |
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Term
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Definition
| is the proportion of each sales dollar available to cover variable cots |
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Term
| contribution margin ratio |
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Definition
| is the proportion of each sales dollar available to cover fixed costs and provide for profit |
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Term
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Definition
| are those fixed costs that can be traced to each segment and would be avoided if the segment did not exist |
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Term
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Definition
| are the fixed costs that are not traceable to the segments and would remain even if one of the segments was eliminated |
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Term
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Definition
| is the relative combination of products being sold by the firm |
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Term
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Definition
| is the units sold or the revenue earned above the break even volume |
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Term
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Definition
| is the use of fixed costs to extract higher percentage changes in profit as sales activity changes |
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