ACCT208 Lecture Notes - Lecture 2: Cost Driver, Financial Statement, Heating Oil
1 Apr 2016
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Chapter 2: cost concepts and relevant income statements - accounting 208. Cost classifications for assigning costs to cost objects. Anything for which cost data is required (customers, products, jobs, etc. ) Direct cost: can be easily traced to cost object: find the cost objects then see what you could id to the object (i. e. hospital) Indirect cost: cannot be easily traced to the cost objects. Understanding cost concepts in relation to financial statements (gaap) All cost involved in making a product or performing a service cost. *remains with a product as an asset until sold. Support costs for factory: general corp. mgmt. - building cost, supplies, acct, hr, publications, legal. Integral part of finished product commissioner, sales salary. Cost may be traced but only at great cost. Indirect labor (same def. : supervisors b, security for factory. Janitors: other, utilities for factory (i. e. heat & light, maintenance equipment in factory, depreciation, factory rent & insurance.
