Flashcard: Mastering Cost Classification and Behavior — 10 carte

Cost Classification — purpose?

Aids in budgeting, control, and decision-making.

Cost Classification — purpose?

Aids in budgeting, control, and decision-making.

Cost Behavior — definition?

How costs change with activity levels.

Direct Costs — example?

Raw materials or direct labor.

Job Order Costing — suitable industry?

Customized or unique product industries.

Indirect Costs — example?

Utilities, administrative expenses.

Fixed Costs — definition?

Constant in total regardless of activity.

Variable Costs — example?

Raw materials, direct wages.

Mixed Costs — example?

Utility bills with fixed + usage fees.

Cost Behavior — importance?

Predicting costs at different activity levels.