ACG-2071 Chapter Notes - Chapter 4: Direct Labor Cost, Activity-Based Costing, Cost Accounting
Document Summary
A collection of tools and techniques that identifies how management"s decisions affect costs. That part of the cost management system that measure coast for the purposes of management decision making and financial reporting. Cost accumulation: collecting costs by some natural classification such as material or labor, cost assignment tracing and reassigning costs one or more cost objectives such as activities, departments, customers, or products. Cost a sacrifice or giving up of resources for a particular purpose. Costs are frequently measured by the monetary units that are used to pay for goods. Cost objective (object) is defined as anything for which a separate measurement of costs is desired: departments, products and activities. Direct costs can be identified specifically and exclusively with a given cost objective in an economically feasible way. Indirect costs cannot be identified specially and exclusively with a given cost objective in an economically feasible way.
