Acct 3270 Chapter 2 Handout

Acct 3270 Chapter 2 Handout - c. Cost driver d. Relevant...

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Chapter 2 – An Introduction to Cost Terms and Purposes I. Basic Cost Terminology a. Cost – b. Actual Cost – c. Budgeted Cost – d. Cost object – e. Direct Cost – f. Indirect Cost – TYPE OF  COST Direct Example:  Indirect COST  ASSIGNMENT Cost tracing COST OBJECT
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More Vocabulary a. Variable Cost b. Fixed Cost If a Company produces 10,000 units with variable costs of $10 the variable cost per unit is ___________________________. If a Company produces 10,000 units with a fixed cost of $40,000 the fixed cost per unit is ____________________________.
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Unformatted text preview: c. Cost driver d. Relevant range Variable Costs Total Costs Fixed Costs e. Unit cost/average cost II. Inventory/Cost of Sales a. Direct materials b. Work-in-process inventory c. Finished goods inventory III. Income Statement versus Balance Sheet Costs a. (Product) Inventoriable costs i. Prime costs ii. Conversion costs b. Period costs Sale to customer IV. How do you calculate the (1) cost of sales for the period, (2) cost of direct materials used, (3) total manufacturing costs incurred, (4) cots of goods manufactured?...
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Acct 3270 Chapter 2 Handout - c. Cost driver d. Relevant...

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