Cost Accounting Exam 1

Cost Object

The object about which costs are gathered

Direct Costs

Directly traceable and easily measured to the cost object

Indirect costs

Not directly traceable or easily measured to the cost object

Cost Assinging

The general term for assigning costs to a cost object. Can be direct or indirect

Cost tracing

Assigning DIRECT costs

Cost allocation

Assigning indirect costs

Cost Pool

A grouping of individual indirect cost items.

Cost Allocation Base

The systematic way to link an indirect cost or group of indirect costs to cost objects. Ideally, the cost driver of indirect costs.