Cost Accounting Terms - INDIRECT COSTS: costs that cannot...

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FINANCIAL ACCOUNTING: the branch of accounting which is concerned with the external users and that it is concerned with addressing the needs of the firm as a whole. COST ACCOUNTING: the branch of accounting that aims to capture a company's cost of production. MISSION STATEMENT: the expression of what an organization wishes to accomplish and envisions their goals and objectives. STRATEGY: a long term plan that fulfills the goals and objectives of an organization. VALUE CHAIN: foundation of strategic resource management.
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Unformatted text preview: INDIRECT COSTS: costs that cannot be directly traceable to a cost object. FIXED COSTS: costs that is constant within the relevant range. VARIABLE COST: costs that varies in total in direct proportion to changes in activity. PREVENTION COST: quality costs that are incurred to improve quality by preventing defects and improper processing. APPRAISAL COSTS: costs incurred for inspecting or testing products. FAILURE COSTS: costs that result from defective units, product returns and complaints....
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