What is a Cost Object? What is it also known as? What is an example?
the specific item that causes a cost
aka "Cost Driver"
ex: car, plants, departments, regions
aka "Cost Driver"
ex: car, plants, departments, regions
Define a Product cost and a Period cost. How do they differ?
Product cost - cost can be assigned to a specific product AND can be capitalized
Period cost - cost that cannot be assigned to a product AND therefore are not capitalized
Period cost - cost that cannot be assigned to a product AND therefore are not capitalized
Give an example of a Product cost and a Period cost.
Product cost - labor, machinery
Period cost - shipping, salesmen, CEO salary
Period cost - shipping, salesmen, CEO salary
What does it mean for something to be "capitalized"? Is a Product cost or a Period cost capitalized?
When something can be assigned to inventory and placed on a balance sheet, it is "capitalized".
Product cost
Product cost
What is a Direct cost; Indirect cost? Give examples.
Direct cost - cost directly to the product (ex: labor for a specific job, this car got these tires)
Indirect cost - cost that can't directly be associated with a product (ex: grease for a robot that makes the car)
Indirect cost - cost that can't directly be associated with a product (ex: grease for a robot that makes the car)
How do you find COGM, COGS, and Gross Profit? (An Intimidating Schedule)
Raw Materials
+Purchased
+BI
-EI
Raw Materials Used (direct and indirect)
Direct Materials Used
+Direct Labor
+MOH
Total Manufacturing Costs
WIP
+BI
-EI
COGM
Finished Goods
+BI
-EI
COGS
GP= Sales -COGS
+Purchased
+BI
-EI
Raw Materials Used (direct and indirect)
Direct Materials Used
+Direct Labor
+MOH
Total Manufacturing Costs
WIP
+BI
-EI
COGM
Finished Goods
+BI
-EI
COGS
GP= Sales -COGS
In terms of strategic positioning, which two general strategies may be chosen by a company?
a. Product differentiation and cost enhancement
b. Cost leadership and product differentiation
c. Increasing customer value and decreasing supplier orientation
d. Revenue production and cost enhancement
e. Activity based costing and value-chain emphasis
a. Product differentiation and cost enhancement
b. Cost leadership and product differentiation
c. Increasing customer value and decreasing supplier orientation
d. Revenue production and cost enhancement
e. Activity based costing and value-chain emphasis
B - Cost leadership and product differentiation
What is a Discretionary fixed cost?
example?
example?
advertising
a fixed cost that can be changed
a fixed cost that can be changed
What is a committed fixed cost?
example?
example?
a fixed cost that cannot be easily changed
ex: long term contract
ex: long term contract
Kartensatzinfo:
Autor: savhighsmith
Oberthema: Accounting
Thema: Accounting II
Schule / Uni: UGA
Ort: Athens
Veröffentlicht: 06.07.2010
Tags: Mathews
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