STUDY GUIDE COST - Cost A cost is incurred when a firm uses...

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Unformatted text preview: Cost: A cost is incurred when a firm uses a resource for some purpose Cost Pools: Costs are assembled into meaningful groups called cost pools (e.g., by type of cost or source) Cost Driver: Any factor that has the effect of changing the level of total cost is called a cost driver Cost Object: A cost object is any product, service, customer, activity, or organizational unit to which costs are assigned for some management purpose Value Stream: group of related products Cost Assignment: process of assigning costs to cost pools or from cost pools to cost objects. Direct Cost: can be conveniently and economically traced to a accost pool or cost object Indirect cost: had no convenient or economical trace from the cost to the cost pool or from the cost pool to cost object Cost allocation: the assignment of indirect costs to cost pools and cost objects Allocation bases: are the cost drivers used to allocate costs DM costs: includes the costs of materials in the product and a reasonable allowance for scrap and defective units Indirect materials cost: refers to the cost of materials used in manufacturing that are not physically part of...
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This note was uploaded on 05/11/2011 for the course ACCY 320 taught by Professor Staff during the Spring '08 term at Northern Illinois University.

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STUDY GUIDE COST - Cost A cost is incurred when a firm uses...

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