Cost that have been incurred in the past.
SUNK COST
A cost that changes in total in direct proportion to a change in an organization’s activity.
VARIABLE COST
Defined as benefit that is sacrificed when the choice of one action precludes taking an alternative course of action.
OPPORTUNITY COST
A cost that remains unchanged in total as the level of activity varies.
FIXED COST
The first step in Activity Based Cost
IDENTIFY COST
Provides an overview of a company's assets, liabilities, and stockholders' equity as a snapshot in time.
BALANCE SHEET
ABM stands for?
ACTIVITY BASED MANAGEMENT
A raw material that physically incorporated in the finished product.
DIRECT MATERIAL
The impact on the operating profit due to the varying levels of volume and the costs and determines a break-even point for cost structures with different sales volumes that will help managers in making economic decisions for short term.
COST VOLUME PROFIT ANALYSIS
It is mostly used in the manufacturing industry since it enhances the reliability of cost data, hence producing nearly true costs and better classifying the costs incurred by the company during its production process.
ACTIVITY BASED COSTING
This is subject to the control or substantial influence of a particular individual.
CONTROLLABLE COST
Involves collecting and analyzing historical data and applying quantitative models, techniques, tools, and databases to predict a program’s future cost.
COST ESTIMATION
CF stands for?
CASH FLOW
It is an expenditure required to produce or sell a product or get an asset ready for normal use.
COST
OE stands for?
OPERATION EXPENSE
COGS stands for?
COST OF GOOD SOLD