B3-M1 Cost Accounting 1 Flashcards

1
Q

what primary cost consists of?

A

primary cost include direct materials and direct labor, but not factory overhead

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2
Q

what is conversion cost?

A

conversion cost are direct labor and overhead, but exclude direct material

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3
Q

what is inventoriable cost?

A

inventoriable cost are assets until sold, when they become COGS

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4
Q

what are product costs?

A

product costs are DM, DL, and OH

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5
Q

what is period cost?

A

Period cost is selling and administrative expenses such as sale commission

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6
Q

what is opportunity cost?

A

An opportunity cost is cost that would have been saved or profits that would have been earned if another decision alternative had been selected

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7
Q

what is a cost driver?

A

A cost driver is a causal factor (the cause) that increases the cost (the effect) of a cost objective

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8
Q

what is variable cost?

A

variable cost is one that varies in total but is fixed per unit

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