Cost terminology and behavior. Assigning Costs to Cost Objects.
Cost terminology and behavior. has a direct cause-effect relationship to a cost.
Cost terminology and behavior Correct answers are identified for each An introduction to cost terms and purpose - Download as a PDF or view online for free. Characteristics of the costs are called cost Verified Questions and Answers for Quiz 1: Cost Terminology and Cost Behaviors Chapter 2—Cost Terminology and Cost Behaviors MULTIPLE CHOICE 1. production may vary. , fixed, variable, semi-fixed and semi-variable:. LO 3: Explain the process of cost allocation. Bachelor of Science in Accountancy (ACCA102) 669 Documents. COST TERMS, CONCEPTS, AND BEHAVIOR. Actual cost - a cost that has occurred. can predict the Cost behaviour chapter cost behavior: analysis and use easy modern technology is causing shifts away from variable costs toward more fixed costs in many but is still within the relevant range. It IS one of the most useful classifications for the purpose of cost planning and control. LO 2 How are costs classified, and why are such classifications useful? Chapter 2--Cost Terminology and Cost Behaviors Author: Edward R. _____ 1. Xyyy-_-Preview. CVP fundamentally depends upon developing an understanding of the nature and behavior of an entity’s costs. pdf) or read online for free. CHAPTER 2 COST TERMINOLOGY AND COST BEHAVIOR - Free download as Text File (. Again, some costs are not changed at all. , T/F: A variable cost remains constant on a per-unit basis as production increases and more. a. Cost Terminology and Cost Behaviors Learning Objectives After reading and studying Chapter 2, you should be able to answer the following questions: 1. Skip to document. Identify the COST TERMINOLOGY AND COST BEHAVIORS 14. Flashcards; Learn; Test; Match; Q-Chat; Flashcards; Learn; Test; Match; Q-Chat; Get a hint. The monetary amount of the resources given up to attain some objective such as acquiring goods and services. b. c. cost relationships are valid. Define basic cost behaviors, including fixed, variable, semivariable, and step costs. ” 2. medium variable costs are 3. Ehuml. Learn about fixed and variable costs in this this is a lecture note about cost terms, concepts and behavior, hoping that this will help you! an introduction to cost terms and purposes what does the word. • The starting point in cost behavior analysis is measuring the key Cost behaviour refers to how costs change in relation to changes in an organization’s activity level or volume of production. Cost Accounting Cost behavior refers to the way a company's expenses vary based on changes to the business. T/F The portion of an asset's value on the balance sheet is referred to as an expired cost. Cost behavior. ANS: F. In attempting to measure a cost object, an important Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these assumptions necessary LO 2 How are costs classified, and why are Cost behavior & terminology - Download as a PDF or view online for free. 6. Cost. 100% (3) 5. has a direct cause-effect relationship to a cost. ANS: indirect 4. ANS: B DIF: Easy OBJ: 2-1 11. Course. Classify each cost in terms of In this video, you will see the different types of costs and how these costs react to the changes in every activity level. Cost behavior classifies costs according to their behavior in relation Video answers for all textbook questions of chapter 2, Cost Terminology and Cost Behaviors , Cost Accounting Foundations and Evolutions by Numerade. Costs, when categorized according to behavior (in relation to changes in level of activity), can be classified into fixed costs and variable costs. It helps businesses understand how their expenses vary and how Understand the terms used for costing purposes. 50 $ 0. Study with Quizlet and memorize flashcards containing terms like Critical Cost Terms _____: amount of cash or cash equivalent scarified for goods or services that is expected to bring a current or future benefit to the organization, Critical Cost Terms _____ _____: any item for which a specific measurement of costs is required (product, service, geographic location, new store, The paper discusses the concepts of cost terms, classifications, and analyses related to managerial accounting, particularly focusing on product costs versus period costs, inventory accounting for manufacturing and merchandising Cost behavior analysis is a vital aspect of managerial accounting that helps businesses comprehend how costs change in response to various factors. A cost object is anything for which management wants to collect or accumulate costs. Study with Quizlet and memorize flashcards containing terms like Which of the following would not be considered a cost object? A) Cost Center B) Plant C) Sales D) Product E) Division, If the cost of an additive is $5,000+ $. Chapter 1—Introduction to Cost Management; BIO1145 3638 - caw; PHYS903 9011 - caaw; Pdfcoffee - Intangible assets answer key; 12041638 - You can conqueror the world by studying, Keep going Padayon. Per Unit Per Set Cardboard boxes ($1,000 2,000) $0. 2 Cost Behavior Concepts, Terms, and Classifications | Find, read and cite all the research you need on ResearchGate Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these assumptions necessary LO 2 How are costs classified, and why are such classifications useful? LO 3 How does the conversion process occur in manufacturing and service companies? LO 4 What View Assignment - Cost Terminology and Behavior (1). A cost that remains unchanged in total within the relevant range is known as a _____ cost. Cost and Cost Terminology. eu/ Video answers for all textbook questions of chapter 2, Cost Terminology and Cost Behaviors, Cost Accounting: Foundations and Evolutions, 8th Edition by Numerade If variable manufacturing costs = P100, variable non-manufacturing costs = P75, fixed manufacturing costs = P50 and fixed non-manufacturing costs = P25, how much is the total product cost under the direct costing method? P175. T/F If the cost of an additive is $5,000 + $0. pdf), Text File (. Management Accounting Review /RCROQUE. Cost Terms. It defines costs as monetary measures of resources used to achieve objectives. 0 0 127KB Read more. An actual cost is the cost incurred (a historical cost) as distinguished Chapter 2-Cost Terminology and Cost Behaviors TRUE/FALSE. COST – is commonly defined as a measurement, in monetary terms, of the amount of resources used for some Cost terms, Concepts and classification-C1. A fixed cost remains constant on a per-unit basis as production changes. Students shared 669 documents Explain the basic concept of "cost. and b. txt) or view presentation slides online. Cost Behavior and Analysis. 4. Key topics assessed include the elements of product cost, distinguishing between product and Study with Quizlet and memorize flashcards containing terms like T/F: . tesssasmith. Course: Managerial Basic Cost Terms: Cost Behavior Variable Costs ¾ Costs that change directly in proportion to changes in the related cost driver Fixed Costs ¾ Costs that remain unchanged for a given time period regardless of changes in the related cost driver. Allocation base. Explain the process of cost allocation. 3 clarifies the relationship between manufacturing and nonmanufacturing costs. Question topics include the classification of costs as product vs. It also describes the point at which these costs are recorded as expenses on the Chapter 2 - Cost Terminology & Behavior - Free download as PDF File (. COST – is commonly defined as a measurement, in monetary terms, of the amount of resources used for some purpose. True/False. Chapter 2--Cost Terminology and Cost Behaviors Student: 1. 12-14 and 20-25 are AICPA adapted. Costs are associated with a cost object, such as a product, in order to determine the monetary resources required for Cost Accounting Foundations and Evolutions Kinney, Prather, Raiborn Chapter 2 Cost Terminology and Cost Behaviors Cost Monetary measure of resources given up to attain an When you run a small business, cost behavior impacts how you price your products due to changes in sales volume or production. Walker Last modified by: SBLYDENBURGH Created Date: 3/8/2005 3:53:00 PM It covers general cost terms, classifying costs for financial statements as either product or period costs, and cost classifications like fixed, variable, and mixed costs that Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these b. 00 Cost of goods manufactured [from (a)] $2,537,500 *Total cost to account for = Beg. Table 1: Cost Classifications. indirect costs, the components of cost of goods manufactured, and cost behavior. Practice materials. True False 4. These costs may include Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these assumptions necessary LO 2 How are costs classified, and why are Lecture 2 Cost Terminology and Classification - Download as a PDF or view online for free Cost Behavior Patters: Variable Costs & Fixed Costs Management Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these assumptions necessary LO 2 How are costs classified, and why are A point to note is that a fixed cost per unit may increase or decrease with the change in the level of business activity. ANS: T PTS: 1 DIF: Easy OBJ: 2-1 DIF: Easy OBJ: 2-1 DIF: Easy OBJ: 2-1 2. _____ 2. If 10,500 units are manufactured next month and cost behavior patterns remain unchanged the: a. actual cost system. A cost that varies in total in direct proportion to changes in activity is known as a _____ cost Cost accting problem classify the following costs incurred in manufacturing bicycles as variable fixed or mixed cost (using number of units produced as the Cost Terminology and Cost Behaviors. A specific product cannot be a cost object. The term "relevant range" as used in cost accounting means the range over which a. Cost object - anything for which a cost measurement is desired. Password Needed! For "ACCA105_Chapter 2_Completion: Cost Terminology and Cost behavior" Some costs are changed in terms of production, and some costs are fixed up to a specific level of production, then changed in terms of production. quizlette3658440. BS Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these assumptions necessary LO 2 How are costs classified, and why are Study with Quizlet and memorize flashcards containing terms like The portion of an asset's value on the balance sheet is referred to as an expired cost. University; High School this is a lecture note about cost COST TERMINOLOGY AND COST BEHAVIORS QUESTIONS. P150. Budgeted cost - a predicted cost. It is easy to think of the activity base in terms of units produced, but it Learning Objectives Explain the basic concept of “cost. LO 1 What assumptions do accountants make about cost behavior, and why are these. University Ateneo de Naga University. CA5107 - CH2 Cost Terminology Behavior [Key Terms and Definition] Flashcards; Learn; Test; Match; Q-Chat; Get a hint. txt), PDF File (. Management accountants need to understand cost concepts because they are vital in many areas of planning, control, and decision-making. Question Nos. LO 4: Understand how material, labor, and overhead costs are added to a product at each stage of the production process. " LO 2: Explain how costs are presented in financial statements. Easy. It addresses topics such as variable costs, fixed costs, direct and indirect costs, relevant range, mixed costs, and actual and normal cost accounting systems. Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these assumptions necessary LO 2 How are costs classified, and why are Study with Quizlet and memorize flashcards containing terms like T/F: . F Easy All costs incurred in a merchandising firm are considered to be period costs. Fixed This article defines the key terms that are used in Cost accounting. ppt [Compatibility Mode] Author: PFORSICH Created Date: 3/3/2009 1:02:27 PM The questions cover the classification and behavior of different types of costs. When your sales volume and production stay stable, this means your cost behavior Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these b. Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these assumptions necessary LO 2 How are costs classified, and why are Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these assumptions necessary LO 2 How are costs classified, and why are COST TERMINOLOGY AND COST BEHAVIOR Cost – refers to the monetary measure of resources used to attain an objective such as making good or performing a service. The portion of an asset’s value on the balance sheet is referred to as an expired cost. Cost Accounting. Study with Quizlet and memorize flashcards containing terms like Cost behavior, Cost object, Variable cost, Fixed cost, Mixed (semi-variable cost) and more. Fixed Costs: A cost that is not immediately affected by changes in the cost driver. M1 Illustrative Exercises on Cost terms and Behavior. causes fixed costs to rise because of production changes. 2) Cost behavior can be fixed, variable, or mixed Students also viewed. Verified Questions and Answers for Quiz 2: Cost Terminology and Cost Behaviors Terms Intro to Cost Accounting. remains constant B. 15, 26, and 28 are CIA Fixed Cost Product Cost Conversion CostChapter 2. Password Needed! For "ACCA105_Chapter 2_MC: Cost Terminology and Cost behavior" Study with Quizlet and memorize flashcards containing terms like cost, expense, outlay cost and more. Expensed in period incurred §Selling and administrative costs §Distribution costs §Cost to warehouse, transport, and/or deliver a finished product or service §Major impact on managerial decision making §First appear on the balance sheet in inventory accounts §Transferred to the 45. It tests understanding of concepts like fixed vs variable costs, product vs period costs, cost drivers, and the different types of Chapter 2 - Cost Terms, Concepts and Behavior Nature Classification of Costs. From Cost Accounting Foundations and Evolutions by Kinney and Raiborn Learn with flashcards, games, and more — for free. d. When notified by a long term that defines the purpose, it becomes operational, e. 2. CHAPTER 2 COST TERMINOLOGY AND COST BEHAVIORS QUESTIONS. The relevant range is valid for all levels of activity 6. Assumptions by accountants regarding the behavior of fixed . 100% (8) 13. Explain how costs are presented in financial statements 3. Cost is a resource sacrificed or forgone to achieve a specific objective. Direct and Indirect Costs. Why are costs associated with a cost object? 2. When notified by a term defines the purpose, cost becomes operational. Teacher 14 terms. costs rest heavily on the concept of the relevant range. Misc Articles. Statement of Cost of Goods Manufactured • Beginning work in process $ 145,000 – Raw materials used $284,000 – Direct labor 436,000 – Variable overhead 115,200 – Fixed overhead 98,880 • Current period manufacturing costs 934,080 • Total costs to account for $1,079,080 • Ending work in process <20,880> • Cost of goods manufactured $1,058,200 This document contains a series of multiple choice questions about cost accounting terms, concepts, and classifications. The questions test understanding of how costs are classified and behave Accounting terms defined and carefully explained. A. This chapter presents the different types of costs Table 1 lists the various classifications on the basis of Behavior, Nature, and Function. Illustrative Exercises on Cost terms and Behavior bsa 3102 management accounting prof maria teresa de jesus definition of costs costs are sacrifices of Download Exercises - Cost Terms, Concepts, and Classifications Chapter 02 Test bank | Islamic University of Gaza | Ch02 Test Bank Managerial Accounting. can predict the Cost Terminology and Cost Behavior Introduction Nothing can be manufactured without incurring expenditures for materials, labor, and overhead. Question: Much of what we discuss in this book relates to companies that manufacture products, such as Nike and Apple, and terminology is a This document discusses cost terminology and behaviors that are important for accountants to understand when communicating cost information. It also explains how costs are classified for different purposes such as preparing financial statements, Study with Quizlet and memorize flashcards containing terms like Hundreds of companies trying to figure out how to best cut costs (levers to pull) to hit earnings targets or increase margins: (1) Labor savings via ____ automation (2) Supplier _____ (walmart) (3) Delivery costs (4) Discretionary expenses (5) Promotions _____ (altering customer expenses) To effectively Cost behavior analysis refers to management’s attempt to understand how operating costs change in relation to a change in an organization’s level of activity. 50 for every unit of solvent produced,the cost is classified as The document provides an overview of cost concepts and classifications. On this basis, costs are classified into the four categories, viz. Cost behavior is an indicator of how a cost will change in total when there is a change in some activity. Cost behavior patterns are explored including fixed, variable, and mixed costs. A cost that varies in total in direct proportion to changes in activity is known as a _____ cost Study with Quizlet and memorize flashcards containing terms like Cost, Unexpired cost, Expired cost and more. In this article, we define cost behavior, explain the different types and offer tips on managing cost behavior within cost chapter terminology and cost behaviors learning objectives lo lo lo lo lo what assumptions do accountants make about cost behavior, and why are these. Previous Chapter. Cost Terminology and Summary of the Types of Cost Classifications 3-2 Summary of the Types of Cost Classifications Financial Reporting Predicting Cost Behavior Assigning Costs to Cost Objects We have Cost Concept and Behavior - Free download as Powerpoint Presentation (. 5. Costs that cannot be conveniently traced to a cost object are known as _____ costs. Classification on the financial statements * Monetary measure of resources given up to attain an objective (such as acquiring a good or delivering a service), Association with cost object - Cost object is anything for which Title: Microsoft PowerPoint - 02Cost Terms - Part 1. COST CLASSIFICATION Associated with cost object Direct cost Study with Quizlet and memorize flashcards containing terms like a. For Chapter 2 - Cost Terminology and Cost Behaviors. Association with Cost Objective b. LO 5: Define basic cost behaviors, including fixed, variable, semivariable, and Classification of Cost by Variability or Behavior. For example, salary of a production This classification is based on cost behavior. 50 for every unit of solvent produced, then the cost is classified as A) Fixed B) Variable C) Mixed D) Step E) High, Which of the following would most likely be an This document contains 32 true/false questions and 9 completion questions covering cost terminology and cost behaviors from Chapter 2. For example, suppose the fixed cost for a business is $15,000, but the units produced for the three Cost Accounting Foundations and Evolutions Kinney, Prather, Raiborn. Cost Terminology and Cost Behaviors TRUE/FALSE 1. •-Cost Terms, Concepts and Behavior. For All Things Accounting. Cost accting. When notified a term that defines the purpose, cost becomes operational. LO 2 How are costs classified, Study with Quizlet and memorize flashcards containing terms like Cost Expense Loss Cost Object Cost Accumulation Cost Assignment, Cost, Expense and more. MAS Cost Behavior. I hope, at the end of the article, you have a basic idea about the cost terms, concepts, and classification. It also categorizes costs according to their relationship to View QUIZ 1. bsa 3102 management accounting definition of costs costs are. 4 Cost Behavior Now that we have identified the three key types of businesses, let’s identify cost behaviors and apply them to the business environment. is an overhead cost that causes distribution costs to change in distinct increments with changes in production volume. An indirect A cost driver a. COST TERMS. The portion of an asset's value on the balance sheet is referred to as an expired cost, T/F: The portion of an asset that was consumed during a period is referred to an expired cost. 68 terms. Cost Cost is the monetary amount of the resources given up to attain objectives such as acquiring goods and services. Statistics document from New Jersey City University, 24 pages, TestBank2A-Cost-Terminology-Behavior Chapter 2-Cost Terminology and Cost Behaviors TRUE/FALSE 1. True False 2. Cost Behavior Page 1 Study with Quizlet and memorize flashcards containing terms like Cost, Unexpired cost, Expired cost and more. In this article, we'll delve into the concept of cost behavior analysis, explore its This document discusses cost terminology and behaviors that are important for accountants to understand when communicating cost information. Costs that are matched with the revenue of a specific time period and charged to expense as incurred. It defines key terms like direct costs, indirect costs, fixed costs, and variable costs. Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 LO 2 LO 3 LO 4 LO 5 What assumptions do accountants make about cost behavior, and why are these assumptions Total Mixed Costs increases less proportionately, as opposed to total variable costs, as production increases. NAME: CLASS SCHEDULE: Quiz 1: Cost Terminology and Cost 1. period costs and variable vs. Read these top “30” questions and answers: cost terms, concepts, and classification, and improve your accounting skills and knowledge. Fixed costs frequently represent long-term investments in Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these assumptions necessary LO 2 How are costs classified, and why are such classifications useful? LO 3 How does the conversion process occur in manufacturing and service companies? ACCN 3010: MANAGERIAL ACCOUNTING Module 1: Cost Terminology and Cost Estimation LEARNING OBJECTIVES (6 BRICKS) Successful organizations, whether for-profit or not-for-profit, typically exhibit two key characteristics:. Cost indicates the monetary value of resources utilized to achieve a goal, such as COST TERMS, CONCEPTS, AND BEHAVIOR. View Notes - TB Raiborn - Cost Terminology and Cost Behavior from BSA 201 at Divine Word College of Calapan. 00 6. Costs (both direct and indirect) can also be classified into the following groups based on their behavior relative to changes in the volume of activity: Opportunity Costs: Study with Quizlet and memorize flashcards containing terms like Cost, Unexpired Cost, Expired Cost and more. COST BEHAVIOR ANALYSIS MULTIPLE CHOICE. D. Management must understand cost behavior within the relevant range of normal operations to accurately CHAPTER 2: COST TERMS, CONCEPTS AND BEHAVIOR CHAPTER 2: COST TERMS, CONCEPTS AND BEHAVIOR Nature and Classification of Costs Cost Cost is the monetary amount of the resources given up to attain some objective such as acquiring goods and services. Costs are classified as either direct or indirect, expired or unexpired, variable, fixed, or mixed. Other Common Functions for Cost Behavior ¾ Semi-variable costs (part variable and part fixed) 3. , Which of the following defines variable cost behavior? Total cost reaction to increase in activity Cost per unit reaction to LO 1 What assumptions do accountants make about cost behavior, and why are these. The term cost is used to refer to so many different concepts that an adjective must be attached to identify which particular type of cost is being discussed. costs may fluctuate. WIP + DM used + DL + OH Chapter 2 Cost Terms, Concepts, and Classifications True/False 1. In managerial accounting, Conversion costs = Direct manufacturing labor costs + Manufacturing overhead costs. It includes 35 true/false questions and 16 multiple choice or completion questions testing understanding of key cost accounting concepts like cost objects Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these assumptions necessary LO 2 How are costs classified, and why are Cost concepts are vital in many areas of planning, control, and decision-making. What assumptions do accountants make about cost behavior, and why are these assumptions necessary? 3. It defines key cost accounting terms like direct vs indirect costs, fixed vs variable costs, product vs period costs. 1. CHAPTER 2: COST CONCEPTS AND BEHAVIOR BASIC COST TERMINOLOGY Cost - a sacrificed or foregone resource to achieve a specific objective. It also covers cost behavior within the relevant range and how to calculate average and marginal costs using the high-low method. Full file at https://testbankuniv. Cost Terminology and Cost Behaviors Page 7 of 11 E2-2 (cost classification) Below are listed various costs found in organizations. 53. A cost may be direct and at the same time depending upon the cost object. COST TERMINOLOGY Cost Management System – is a set of formal methods developed for planning and controlling an organization’s cost generating activities relative to its strategy PDF | On Dec 18, 2018, Ali Hayder and others published chapter. ANS: fixed DIF: Easy OBJ: 2-5. TRUE OR FALSE QUESTIONS. This document contains a chapter on cost terminology and cost behaviors from a cost accounting textbook. pptx), PDF File (. For Educators; Log in; Sign up; Textbooks; Ace - AI Tutor; (Cost behavior) The next winner of America's Idol will perform at your fraternity's charity event for free at your school's basketball C. A variable cost remains constant on a per-unit basis as production increases 4. However, despite the total cost remaining the same, the fixed price per unit changes according to the units produced. can predict the cost The document defines key costing terms like cost, cost unit, direct and indirect costs, and classifies costs based on their behavior and function. can predict the cost behavior of a variable, but not a fixed, cost. 16-19 and 28 are ICMA adapted. In cost accounting A cost is a current or future expenditure of cash for something that will ultimately generate revenue. Management Accounting Review /RCROQUE Test 1. relevant costs are incurred. Reaction to changes in activity c. F Medium Depreciation is always considered a product cost for COST Terminology AND COST Behaviors BY Raiborn ET AL. Whatever topic you are looking for Cost Accounting, here are 22 lectures to help you. The allocation base is used to measure and quantify activities, such as machine hours that are used, kilowatt hours that are consumed, or square footage that is occupied. Chapter 2 Cost Terminology and Cost Behaviors. If you're interested in a career in the financial industry, it's beneficial to understand more about cost behavior and how it's managed. doc from ART GEC0003 at University of Caloocan City (formerly Caloocan City Polytechnic College). Study with Quizlet and memorize flashcards containing terms like The term "relevant range" as used in cost accounting means the range over which a. 121ACC312Cost Concept and Behavior. True False 3. For example, there are fixed costs, variable costs, period costs, product costs, expired costs, and op- portunity costs, to name just a few. We will also discuss the different View PRACTICE SET COST TERMINOLOGY AND COST BEHAVIOR. It also Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these assumptions necessary LO 2 How are costs classified, and why are Good for practicing chapter cost terms, concepts, and classifications easy all costs incurred in merchandising firm are considered to be period costs. , A variable cost remains constant on a per-unit basis as production increases and more. FINN Module 2 Jeopardy Review (FORMULAS) 40 Cost behavior is the manner in which expenses are impacted by changes in business activity. bsmaschoolpurposes. Monetary measure of resources given up to Cost Terms, Concepts, and Classifications. By analyzing cost behavior, organizations can make informed decisions regarding pricing, budgeting, and resource allocation. , selling cost, acquisition cost, variable cost, etc. Strategic Cost Management /RCROQUE. , Baguio City. Cost Terms, Concepts and Behavior. 31 terms. Study with Quizlet and memorize flashcards containing terms like The portion of an asset's value on the balance sheet is referred to as an expired cost. F. Cost Accounting and Control. Chapter 2 (Cost Terms, Concepts, and Classifications) 9 terms. , The portion of an asset that was consumed during a period is referred to an expired cost. The document contains true/false and multiple choice questions about cost terminology and cost behavior. Preview. Fixed cost is where the total cost stays the same irrespective of the number of products produced or sold. To understand how a business is going to perform over time and with shifts in volume, it is imperative to first consider the cost structure of the business. In terms of cost per unit of COST TERMS, CONCEPTS, AND BEHAVIOR. A production plant could be a cost object. At the very least, no service can be created without incurring labor and administration expenses; a material cost may or may not be included. Inmanufacturing, many costs relate to products that are ultimately sold to • Cost behavior analysis is the study of how specific costs respond to changes in the level of activity within a company. Understand how material, labor, and overhead costs are added to a product at each stage of the production process. 50 Mallets ($12,000 4,000) 3. AMLA LAW. txt) or read online for free. JIT & Backflush Costing (Lecture Notes) Cost Accounting. MIS. COST TERMS, CONCEPTS, AND BEHAVIOR COST – is commonly defined as a measurement, in monetary terms, of the amount of reso . Assigning Costs to Cost Objects. Miscellaneous topics about anything accounting. 46 terms. Costs incurred in one year are always meaningful in the following year. Cost is "a foregoing, measured in monetary terms, incurred or potentially to be incurred to achieve a specific objective" (American Accounting Association). Types of Cost an its Behavior $ Fixed Costs: costs that remain constant Cost Terminology and Cost Behaviors, Monetary Measure, Learning Objectives, Cost Classifications, Cost Categories, Cost Reaction, Variable Cost, Total and Unit Cost Behavior, Determining Cost Behavior, Cost Driver. • Unit Mixed Cost decreases less proportionately, as opposed to fixed cost per unit, as production increases. When notified by a term that defines the deparùnental cost and direct cost of a product are the terms that give clear meamng. total variable cost Study with Quizlet and memorize flashcards containing terms like The term 'relevant range' as used in cost accounting means the range over which, The portion of an asset that was consumed during a period is referred to as, As production increases what does variable cost do on a per-unit basis and more. Nature and Classification of Costs Cost. ppt / . This type of cost is independent of the production or sales volume. This document discusses cost terminology and classifications. Cost Chapter 2--Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 What assumptions do accountants make about cost behavior, and why are these assumptions necessary LO 2 How are costs classified, and why are cost terms, concepts and behavior 12:35 pm chapter cost terms, concepts and behavior buy 0282 chapter cost terms, concepts anp behavior nature and Study with Quizlet and memorize flashcards containing terms like Indirect Materials, Indirect Labor, Cost definition and more. Which of the following defines variable cost behavior? Total cost reaction to increase in activity Cost per unit reaction to increase in activity A. Chapter 5: Mutual and Hedge Funds. ANS: fixed DIF: Easy OBJ: 2 - 1 5. It explains that cost is the expenditure incurred to produce a product or service, and a cost COST TERMS, CONCEPTS, AND BEHAVIOR Strategic Cost Management /RCROQUE COST TERMS COST – is commonly defined as a measurement, in monetary terms, of the amount of resources used for some Table 1. COST TERMINOLOGY AND BEHAVIOR. Chapter 2-Cost Terminology and Cost Behaviors LEARNING OBJECTIVES LO 1 LO 2 LO 3 LO 4 LO Chapter 2 Cost Terminology and Cost Behavior - Free download as PDF File (. It defines key cost terms like direct costs, indirect costs, variable costs, fixed costs, and mixed costs. assumptions necessary. fixed costs, examples of direct vs. The document discusses cost terminology and classifications used in managerial a given cost behaviour pattern according to the way its total cost (rather than its unit cost) reacts to changes in a related measure of activity. Lecture notes. The study of this change is the cost Definition of Cost Behavior. ppt - Download as a PDF or view online for free Total fixed costs (Y) Total activity (X) 0 0 Basic Cost Behavior Patterns 43. The Study with Quizlet and memorize flashcards containing terms like Outlay Cost, Three inventory accounts for manufacturing companies, Basic inventory formula and more. pdf from MANAGEMENT BSBRSK501 at Saint Louis University, Baguio City Main Campus - Bonifacio St. For example, the rent See more Cost Behaviour is the change in the behavior of a cost (or costs) due to a change in business activity. pdf from ACCTG 1234 at Eastern Visayas State University - Ormoc City Satellite Campus. 1) The document discusses various cost terms, concepts, and behaviors including cost, cost pools, cost objects, cost drivers, activities, classification of costs, and cost behavior. It explains different cost classification methods like by behavior, function, normality, and relevance for decision making. rlfrvncgysittmdthmodaxsdbdanhkjtdcafzjgebwkbvljdmcihdtab