| A | B |
|---|
| Administrative costs | All executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing, marketing, or selling |
| Common costs | a common cost is a cost that is common to a number of costing objects but cannot be traced to them individually |
| conversion cost | direct labor cost plus manufacturing overhead cost |
| diffferential cost | a difference in cost between any two alternatives |
| differential revenue | the difference in revenue between any two alternatives |
| direct cost | a cost that can be easily and conveniently traced to the particular cost object under consideration |
| direct labor | those factory labor costs that can be easily traced to individual units of product (also called touch labor) |
| direct materials | those materials that become an integral part of a finished product and can be conveniently traced into it. |
| fixed cost | a cost that remains constant, in total regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a per unti basis, it varies inversely with the level of activity |
| incremental cost | an increase in cost between two alternatives |
| indirect cost | a cost that cannot be easily and conveniently traced to the particular cost object under consideration |
| indirect labor | the labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be conveniently traced directly to particular products |
| indirect materials | small items of material such as glue and nails. These items may become an integral part of a finsihed product but are traceable to the product only at great cost of inconvenience |
| inventoriable costs | synonym for product costs |
| manufacturing overhead | all costs associated with manufacturing except direct materials and direct labor |
| marketing or selling costs | al costs necessary to secure customer orders and get the finished product or service into the hands of the customer |
| period costs | those costs that are taken directly to the income statement as expenses in the period in which they are incurred or accruied; such costs consist of selling )marketing) and administrative expenses |
| prime cost | direct materials cost plus direct labor cost |
| product costs | all costs that are involved in the purchase or manufacture of goods. In the case of manufactured goods, these costs consist of direct materiasl, direct labor, and manufacturing overhead. |
| raw materials | any materials that go into the final product |
| schedule of cost of goods manufactured | a schedule showing the direct materials, direct labor, and manufacturing overhead costs incurred for a period and assigned to work in process and completed goods |
| variable cost | a cost that varies, in total, in direct proportion to changes in the level of activity. it is constant per unit. |
