MS: Classification of costs

manufacturing

are costs that are incurred in the production of goods like dm, dl, and moh

marketing

_____ costs are those associated with mrketing and selling the product from the time the production process is completed until the product is delivered to the customer

general and administration

are costs associated with the management of the company

historical

are costs incurred in the past

future

____ costs are budgeted costs that are expected to be incurred in a future period

direct

_____ costs that can be directly identified or traceable to a product or department

indirect

_ costs are those that cannot be directly identified or traceable to a product or dept

product

__ costs are inventoriable costs

period

__ costs are those which are expensed in the period in which they are incurred

controllable

___costs are those which are subject to significant influence by a particular manager

uncontrollable

__costs are those in which a particular manager has no significant influence

committed

__costs are those that resulted from a previous commitment

discretionary

__costs are those in which the size or time of incurrence is a matter of choice

relevant

__costs are those that varies or differ between two or more alternatives

irrelevant

__costs are those that would not change regardless of the alternative to be chosen

variable

__costs are those that changes in direct proportion with the changes in volume but remains constant per unit

risk

__costs are those that do not change regardless of the changes in volume but cost per unit vary inveresely with volume. these include capacity and discretionary costs.

mixed

__costs are those that vary in total amount but not in direct proportion with volume

learning curve

is a cost model whereby the amount of time spent decreases every time the unit doubles by a constant percentage

prime

__cost is DM+DL

conversion

__cost is DL+MOH

information

__costs are those costs of obtaining information

marginal

__costs are those incremental costs associated with an additional unit of item sold

opportunity

__costs are those which are foregone or rejected in favor of another alternative

sunk

__costs are those costs which were incurred in the past and is irrelevant in decision making

out of pocket

___costs are costs that require cash outlay or disbursements