[COB 242] - Final Exam Guide - Ultimate 24 pages long Study Guide!

• School: JMU
• Department: College of Business
• Course: COB 242
• Professor: Sandra Cereola

Document Summary

Cost objective: anything for which cost data are desired. Direct cost: a cost that can be easily & conveniently traced to a particular cost object. The direct costs of a ford suv would include the cost of the steering wheel purchased (cid:271)(cid:455) ford fro(cid:373) a supplier, the (cid:272)osts of dire(cid:272)t la(cid:271)or (cid:449)orkers, the (cid:272)ost of tires, et(cid:272) . The dire(cid:272)t (cid:272)osts of a hospital"s radiolog(cid:455) depart(cid:373)e(cid:374)t (cid:449)ould i(cid:374)(cid:272)lude (cid:454)-ray film used in the department, salaries of radiologists, and the cost of radiology lab equipment. Indirect cost: a (cid:272)ost that (cid:272)a(cid:374)"t (cid:271)e easil(cid:455) a(cid:374)d (cid:272)o(cid:374)(cid:448)e(cid:374)ie(cid:374)tl(cid:455) tra(cid:272)ed to a parti(cid:272)ular (cid:272)ost o(cid:271)je(cid:272)t. Ma(cid:374)ufa(cid:272)turi(cid:374)g o(cid:448)erhead, su(cid:272)h as the fa(cid:272)tor(cid:455) (cid:373)a(cid:374)agers" salar(cid:455) at a (cid:373)ulti-product plant, is an indirect cost of any product. General hospital administration costs are indirect costs of the radiology lab. Differential cost/ revenue: costs that differ between alternatives. Relevant: differs between alternatives occurs in future. Opportunity cost: going to college vs. full time job.