BUS 215 Chapter Notes - Chapter 1: Executive Compensation, Financial Statement, Economy Car
Document Summary
Lo 1: understand cost classifications used for assigning costs to cost objectives: direct costs and indirect costs. Financial accounting is concerned with reporting financial information to external parties. Managerial accounting is concerned with providing information to managers within an. Summary of cost classifications: organization so that they formulate plans, control operations, and make decisions objective cost customers, and organizational subunits. A cost objective is anything for which cost data are desired - including products, Costs are classified as either direct or indirect. A direct cost is a cost that can be easily and conveniently traced to a specified cost. Eg salary of sale manager in tokyo (specific), cost of paper to make brochures. An indirect cost is a cost that cannot be easily and conveniently traced to a specified. To be traced to a cost objective such as a particular product, the cost must be.
