ACCT 308 quiz 1

cost object

anything for which managers want to know the cos

direct costs are

traced

indirect costs are

allocated

cost tracing

based on actual costs

cost allocation

based on estimated costs

variables cots ___ in total, ____ per unit

change, stay constant

fixed costs ____ in total, _____ per unit

stay constant, change per unit

total cost equation

total cost = fixed costs + (variable cost per unit x number of units)

product costs

manufactoring costs, costs to make the product

period costs

non-manufacturing costs, operating expenses

manufacturing overhead

costs other than direct materials and direct labor necessary to manufature a prodcut

total manufacturing costs =

DM + DL + OH

total costs =

manufacturing costs + non-manufacturing costs

total costs =

indirect costs + direct costs

prime costs =

DM + DL

conversion costs =

DL + OH

total costs =

variable costs + fixed costs

total costs =

product costs + period costs