Cost Concepts and Classification Flashcards
The classification and types of costs incurred will vary depending on the organization’s what?
Nature
Understanding the cost structure of a manufacturing company provides what?
A comprehensive understanding of costing
Future benefits are also called what?
Revenues
What are incurred to generate future benefits?
Costs
As costs are utilized in revenue production, they are expected to what?
Expire
Expired costs are also known as?
Expenses
These are deducted from revenues to determine the profit for a specific period.
Expenses
It is a cost that expires without generating any revenue benefit.
Loss
What is the primarily focus of cost accounting?
The primary focus is on costs rather than expenses.
List of manufacturing/product costs.
Direct Materials
Direct Labor
Factory Overhead
List of non-manufacturing/period costs.
Marketing or Selling expense
General or Administrative expense
What are the costs according to relation to a product?
Manufacturing/Product costs
Non-manufacturing/Period costs
What are the costs according to variability?
Variable costs
Fixed costs
Mixed costs
What are the costs according to relation to manufacturing departments?
Direct Departmental charges
Indirect Departmental charges
What are the costs according to their nature as common or joint?
Common costs
Joint costs
