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COST ACCOUNTING TERMINOLOGIES

AC 1203  MW 10:30-12:00 PM
 
CLUSTER 5

Horizontales
A simplified costing method applied at the end of production.
refer to expenses that are incurred within a specific accounting period
The monetary value of resources used in production.
A single, distinct quantity or measure of a product or service.
are those costs that can be directly traceable to a costing object.
An amount determined on the basis of costs incurred including standard cost properly adjusted for applicable varianvce/s.
A cost that is deducted from revenue to determine profit.
The sum of direct materials and direct labor.
is a cost that increases in lumps of cost with changes in output or activity. They are predominantly fixed but change in peso lumps at some point within the relevant range.
Planning for expected income and expenses.
Verticales
Costs that do not change with production volume.
are costs that vary in total as the volume of production or sales changes.
Raw materials traceable to a finished product.
are costs associated with the next unit or an incremental cost associated with additional unit produced or sold.
is a variable or fixed cost that shifts upward or downward when activity changes by a certain interval or step. It is a cost that increases by a fixed amount as certain levels of activity are reached.
Allocation of an asset's cost over its useful life.
are those costs that are difficult to directly trace to a specific costing object.
is the process of directly assigning costs to a specific cost object, such as a product, department, or project
The point where total revenue equals total costs.
Indirect costs involved in production.