definition of chapter 4, assignment # 4

definition of chapter 4, assignment # 4 - Naiya Amin ACCT...

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Naiya Amin ACCT 3240*01WC Assignment # 4 Definition September, 27 th 2010 1. Actual costing: Actual costing system that traces direct costs to a cost object by using the actual direct-cost rates times the actual quantities of the direct cost inputs. It allocates indirect costs based on the actual indirect cost rates times the actual quantities of the cost allocation bases. Actual costing systems record/measure all cost components at their actual values: Actual product cost = actual D/M + actual D/L + actual O/H 2. Cost-allocation base: is a systematic way to link an indirect cost or group of indirect costs. A cost allocation base can be either financial or non financial. When the cost object is a job, product or customer, the cost allocation base is also called a cost-application base. A cost allocation base for allocating manufacturing costs would typically be labor-hours, machine-hours, or production units.
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3. Cost-application base: cost-allocation base is also called cost-application
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definition of chapter 4, assignment # 4 - Naiya Amin ACCT...

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