文档介绍：Chapter 2 An Introduction to Cost Terms and Purposes
An Introduction to Cost Terms and Purposes
Chapter 2
Introduction
Different cost concepts and terms are often used in accounting reports3>.
Managers who appreciate these concepts and terms are able to...
best use the information provided, and
avoid misuse of that information.
Learning Objectives
Define and illustrate a cost object
Distinguish between direct costs and indirect costs
Explain variable costs and fixed costs
Interpret unit costs with caution
Distinguish among manufacturing, merchandising, and service-panies
Learning Objectives
Differentiate between inventoriable costs and period costs
Describe the three categories of monly found in panies
Explain why different ways puting product costs are appropriate for different purposes
Learning Objective 1
Define and illustrate a cost object
Cost and Cost Terminology
Cost is a resource sacrificed or forgone to achieve a specific objective.
It is usually measured as the ary amount that must be paid to acquire goods and services.
An actual cost is the cost incurred (a historical cost) as distinguished from budgeted costs.
Cost and Cost Terminology
A cost object is anything for which a separate measurement of costs is desired.
Cost and Cost Terminology
There are two basic stages of accounting for costs:
Cost accumulation
Cost assignment to various cost objects
Cost and Cost Terminology
Cost
Accumulation
Cost Object
Cost Object
Cost Object
Cost Assignment
Cost and Cost Terminology
Cost accumulation is the collection of cost data in anized way by means of an accounting system.
Cost assignment is a general term that passes...
tracing accumulated costs to a cost object, and
allocating accumulated costs to a cost object.
Learning Objective 2
Distinguish between direct costs and indirect costs
Direct Costs
Direct costs of a cost object are those that are related to a given cost object (product, department, etc.) and that ca