CHAPTER 2: COST TERMS, CONCEPTS AND BEHAVIORS Flashcards
1
Q
Cost
A
resources given up to attain some
2
Q
Out-of-pocket cost
A
actual outlay of cash
3
Q
Marginal costs
A
costs necessary to effect a one-unit increase in the activity level
4
Q
Opportunity costs
A
lost opportunity by not taking the other option whether in money or time
5
Q
Cost drivers
A
- measure of activity
- basis used to assign costs to cost objects
6
Q
Direct costs
A
costs that can be traced directly to a unit of product
7
Q
Indirect costs
A
cost that cannot be seen easily
8
Q
Common costs / Joint Cost
A
cost incurred for the benefit of more than one cost object
9
Q
Controllable costs
A
costs that can be affected by the efforts of a manager
10
Q
Committed costs
A
costs as a result of the past decisions
11
Q
Discretionary costs
A
