Cost Terms Flashcards
1
Q
Cost
A
A sacrificed or forgone resource to achieve a specific objective.
2
Q
Cost object
A
Anything for which a cost measurement is desired.
3
Q
Direct costs
A
Are related and can be traced to a cost object in an effective way.
4
Q
Indirect costs
A
Are related to a cost but can’t be traced in an effective way.
5
Q
Variable costing
A
Sales
- VC
= Total CM
- FC
= Profit
