BUS 254 Chapter Notes - Chapter 2: Marginal Cost, Cost Driver, Fixed Cost

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: Michelle Iorio

Document Summary

A measure of an organization"s output of goods or services. The total cost of producing a particular quantity of product divided by the number of units produced. A cost subject to the control or substantial influence of a particular individual. A characteristic of an activity or event that results in the incurrence of costs by that activity or event. Responsibility centre, product or service to which a cost is assigned. The total cost of direct material, direct labour, and manufacturing overhead transferred from work-in-process inventory to finished-goods inventory during an accounting period. The expense measured by the cost of the finished goods sold during a period of time. The difference in a cost item under two decision alternatives. A cost that can be traced to a particular department or other subunit of an organization. The costs of compensating employees who work directly on a firm"s product. Should include wages, salary and associated fringe benefits.