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Unformatted text preview: a. Cannot be traced directly to specific sale b. E.g. CEOs salary I. Cost Driver a. Characteristic of an activity or event that causes costs to be incurred by that activity or event J. Controllable Cost a. Costs that a manager can control or heavily influence K. Uncontrollable Cost a. Costs that a manager can not heavily influence (MORE FOR FINAL EXAM) L. Opportunity Cost a. Benefit that is sacrificed when the choice of one action precludes taking an alternative course of action M. Sunk Cost a. Costs that have been incurred in the past N. Differential Cost a. Amount by which the cost differs under two alternative actions O. Marginal Cost a. Extra cost incurred when one additional unit is produced P. Average Cost per Unit a. Total cost, for whatever quantity is manufactured, divided by the number of units manufactured...
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This note was uploaded on 04/10/2008 for the course ACC 1102 taught by Professor West during the Spring '08 term at Villanova.
- Spring '08