Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Cost Classification
Cost Classification Definitions
| Term | Definition |
|---|---|
| Direct cost | cost easily traced to a specific cost object |
| Indirect cost | cannot easily be traced to a specific cost object |
| Direct materials | raw materials whose cost can easily be traced to finished products |
| Selling cost | all costs incurred to secure and deliver products |
| Administrative cost | all costs involved with the general management of a company |
| Nonmanufacturing cost | Selling, general, and administrative costs |
| Product cost | all costs involved in acquiring or making a product |
| Period cost | all selling and administrative costs |
| Variable cost | costs that vary in direct proportion to the level of activity |
| Fixed cost | remains constant regardless of changes in level of activity |
| Mixed cost | combines variables of variable and fixed elements |
| Differential cost | the difference in cost between two future alternatives |
| Differential revenue | the difference in revenue between two future alternatives |
| Opportunity cost | the potential benefit that is given up when an alternative is selected |
| Sunk cost | a cost already incurred and cannot be changed in the future |
| Prime cost | direct labor and direct materials |
| Conversion cost | direct labor and manufacturing overhead |
Created by:
444ali
Popular Accounting sets