B3-M1 Cost Accounting 1 Flashcards
what primary cost consists of?
primary cost include direct materials and direct labor, but not factory overhead
what is conversion cost?
conversion cost are direct labor and overhead, but exclude direct material
what is inventoriable cost?
inventoriable cost are assets until sold, when they become COGS
what are product costs?
product costs are DM, DL, and OH
what is period cost?
Period cost is selling and administrative expenses such as sale commission
what is opportunity cost?
An opportunity cost is cost that would have been saved or profits that would have been earned if another decision alternative had been selected
what is a cost driver?
A cost driver is a causal factor (the cause) that increases the cost (the effect) of a cost objective
what is variable cost?
variable cost is one that varies in total but is fixed per unit
