Type Of Costs Quiz Flashcards
Direct Costs
Costs directly related to cost object
A.) easily traceable
B.) estimate accurately
Indirect Costs
Not easy to trace or estimate
- Related to cost object
- This cost is allocated
Variable Costs
Costs that vary w/ activity
Fixed Costs
Does not change based on activity (production or sales)
Opportunity Costs
Cost of what we didn’t do
Product Costs
Inventory (current assets)
Period Costs
Based on WHEN it happens
- income statement expense
What costs fall under product costs?
Direct Materials, Direct Labor, Overhead
Direct Materials and Direct Labor make?
Prime costs
Direct Labor and Overhead make?
Conversion Costs
Total product cost
Equation
- Product Cost = DM + DL + OH
- On BS until sold —> COGS (I.S.)
Period Costs contains what two expense costs
Selling expenses, administrative expenses
Cost incurrence
When a cost happened
Where do product costs fall on the B.S.
Inventory (current assets)
