ACTG 2300 Study Guide - Midterm Guide: Executive Compensation, Resource Consumption, Operating Leverage
4 Nov 2017
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Chapter 2 managerial accounting & cost concepts. Predicting changes in cost due to changes in activity. Administrative costs: variable costs, fixed costs, mixed costs, differential costs, sunk costs, opportunity costs. Cost object anything for which cost data are desired: products, customers, departments, jobs. Cost object classifications: direct costs, indirect costs. Direct cost a cost that can be easily and conveniently traced to a specified cost object. Indirect cost a cost that cannot be easily and conveniently traced to a particular cost object. Manufacturing costs classifications: direct materials, direct labor, manufacturing overhead. Direct materials (raw materials) raw materials that become an integral of the finished product and whose costs can be conveniently traced to it: wood in a table. Direct labor labor costs that can be physically and conveniently traced to individual units of product. (touch labor: assembly-line workers in a plant. Manufacturing overhead includes all manufacturing costs except direct materials and direct labor.
