Ch 13 Basic Definitions recap ppt - breakout

Ch 13 Basic Definitions recap ppt - breakout - A cost is...

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Unformatted text preview: A cost is incurred when a firm uses a resource for some purpose A cost object is any product, service, customer, activity, or organizational unit to which costs are assigned for some management purpose Basic Definitions There are four main ways to classify costs (different costs for different purposes): For product and service costing (GAAP) For strategic/tactical decision-making For planning and decision-making For control/feedback Cost Concepts: Overview The process of assigning costs to cost objects Direct costs can be conveniently and economically traced to a cost object Indirect costs cannot be traced conveniently or economically to a cost object Because indirect costs cannot be traced, assignment is made through the use of cost drivers ( cost allocation ) (To be covered in later chapters) Product/Service Costing: Cost Assignment In your teams discuss question #1 and choose the correct answer. 2 minutes Product costs include only the costs necessary...
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This note was uploaded on 01/07/2012 for the course ACC 241 taught by Professor Karengeiger during the Fall '08 term at ASU.

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Ch 13 Basic Definitions recap ppt - breakout - A cost is...

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