Module 1: Cost Accounting Part 1 Flashcards
1
Q
Overhead cost =
A
is mixed cost = fixed and variable components
2
Q
Prime cost
A
= direct labor & direct materials
3
Q
Product cost
A
cost assigned to goods (products) that were either purchased or manufactured for resale
4
Q
Conversion cost
A
direct labor & overhead
5
Q
Cost driver
A
a casual factor (the cause) that increases the cost (the effect) of a cost objective, it is often non financial
6
Q
Inventoriable cost
A
Cost are assets until sold when become “cost of goods sold”
7
Q
Distribution of overhead cost
A
is Cost allocation which is the distribution of overhead or support costs based on anyone variety of methods
8
Q
Managerial accounting - “Relevant Range”
A
the range of activity within which the relationships of fixed costs and variable costs are meaningful and valid
