My Cards

Question 1

What are product costs?

Answer 1

costs assigned to goods (products) that were either purchased or manufactured for resale

Question 2

What are relevant costs?

Answer 2

Costs that are relevant to a particular decision

Question 3

Opportunity costs?

Answer 3

Costs that would have been saved or profits that would have been earned if another decision alternative has been selected.

Question 4

What does managerial accounting focus on?

Answer 4

The needs on internal users (managers) and on data relevant for decision making. Also focuses on future costs and the impact of decisions for future profitability.

Question 5

What are cost drivers?

Answer 5

Activities that cause costs to increase as the activity increases. Is non-financial.