Homework #4 - Homework#4 Lorea Peterson PID A99122239 Chapter 12 3 If the cost object is a manufactured product what are the three major cost categories

Homework #4 - Homework#4 Lorea Peterson PID A99122239...

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Homework #4 Lorea Peterson PID: A99122239 Chapter 12 3 If the cost object is a manufactured product, what are the three major cost categories to accumulate? The three major categories are cost accumulation, which determines the cost of a particular object. The cost objects, which is divided into the primary cost object and secondary cost objects. The primary cost object is the cost of the promotion. The secondary cost objects are divided into three: cost of caps, cost of advertising, and the cost of labor. In order to determine these, we need the cost driver, which is the cause and effect with a cost object. 4 What is a direct cost? What criteria are used to determine whether a cost is a direct cost? Assigning costs to a department requires cost tracing and cost allocation. For direct costs, for direct costs it can easily be traced back to a cost tracing. Whether or not a cost is easily traceble requires cost/benefit analysis.
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  • Spring '11
  • Doran
  • Net Present Value, Internal rate of return, Lorea Peterson

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