Week 2 Lecture Notes - Lecture Notes Week 2 Chapter 17...

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Lecture Notes Week 2 Chapter 17 Overview: Full Costs and Their Uses Cost measures the monetary amount of resources used for some purpose. The purpose is called a cost object. The cost objects in a manufacturing company are its products, organization units, projects, and any activity for which cost information is desired. Full cost means all the resources used for a cost object. Full cost is the sum of (a) the cost object’s direct costs (the costs that are directly traced to it) and (b) a fair share of the indirect costs (those costs incurred jointly for several cost objects). A cost accounting system routinely collects costs and assigns them to cost objects. A T-account flowchart of a cost accounting
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