Capital assets are long-lived assets that are
used in the operations of a business and are
not intended for sale to customers.
Capital assets are subdivided into two
1. Tangible (with physical
adjustments have been mad
Managing Costs HW
Types of Costs:
Direct = either conveniently and economically traced (tracked) to a cost object.
- Example: what are direct costs of a cheese pizza?
Cost object: A cheese pizza
Direct materials: Flour, cheese, sauce etc
Manage. Acct. Midterm1 Review Guide
What is cost?
A resource sacrificed or forgone to achieve a specific objective.
What is a cost object?
Anything to which costs attach or are related
Product, service, department, operating activity, etc.
What is cost
Internal control consists of the policies and
procedures adopted within a business in
1. optimize resources, and
2. prevent and detect errors and