02 Flashcards
Cost behavior
How the activities of an organization affect its costs
Cost driver
A measure of activities that requires the use of resources and
thereby cause costs
Variable cost
A cost that changes in direct proportion to changes in the cost-
driver level
Fixed cost
A cost that is not affected by changes in the cost-driver level
Imputed cost
A resource consumption that is not tracked in financial accounting at all and therefore is added by cost acc in order to reflect true resource consumption of the company
Indirect cost
are related to the particular cost object but cannot be traced to it in an economically feasible way
Marginal cost
The additional costs incurred when producing one additional unit of output
Opportunity cost
The foregone benefit of the best possible alternative use if a resource
Outlay cost
A cost item that leads to a corresponding cash payment
Period cost
cost item that are treated as an expense un the period they occur
Predicted cost
the expected future cost that is assumed to be mainly beyond of the company’s influence
Product cost
the cost of producing outputs
Standard cost
the intended future cost level that is achievable under efficient operating conditions
Step-fixed cost
A cost item that remains constant within a certain activity range and increases to a next-higher level, if the activity level increases beyond that activity range
Sunk cost
Cost that has already been incurred and that cannot be changed by any future decision
