Topic 2: cost terms, concepts and classifications : module instructions read the topic overview below read all assigned text book chapter for the week as seen on the to do list on the main page. Cost concepts and classifications cost is a foregoing, measured in monetary terms, incurred or potentially to be incurred to achieve a specific objective (american accounting association) cost refers the monetary measure of the amount of resources given up or used for some specified purpose. Costs terms, concepts and classifications chapter two classifications of costs direct material direct labor manufacturing overhead prime cost.
Costs terms, concepts and classifications : we have looked at some of the ways in which managers classify costs how the costs will be used for preparing external reports, predicting cost behavior, assigning costs to cost objects, or decision making will dictate how the costs are classified. 2-17 costs associated with the quality of conformance can be broken down into prevention costs, appraisal costs, internal failure costs, and external failure costs prevention costs are incurred in an effort to keep defects from occurring. Cost terms, concepts, and classifications concept of cost cost means the amount of expenditure incurred on, or attributable to a given thing the term cost can.
Cost accounting module 1: cost terms, concepts and classifications (klplus cpe course) this basic-level online tutorial is designed to provide you with a working knowledge of the terms and concepts you will need for the more advanced topics covered in later modules. Start studying chapter 2 (cost terms, concepts, and classifications) learn vocabulary, terms, and more with flashcards, games, and other study tools. Cost terms, concepts and classifications cost, a frequently used word in all types of organizations- manufacturing, non-manufacturing, business, service and retail.
Cost terms, concepts, and classifications uaa – acct 202 principles of managerial accounting dr fred barbee. Chapter 2an introduction to cost terms,concepts, and classifications. So can we basically classify certain basic cost terms that are commonly used in the cost and management accounting books on cost concepts & classifications: 10 . Chapter 2 cost terms, concepts, and classifications learning objectives lo1 identify and give examples of each of the three basic manufacturing cost categories. Cost terms , concepts and classificationpptx - view presentation slides online it is basic level, let you know to understand about costing concepts and classification, terms in a simple manner.
Cost terms, concepts and classification definition and explanation of various types of costs and their use in managerial accounting. Cost behavior: the way in which a cost reacts or responds to changes in the level of business activity b relevant range: the range of activity within which assumptions about variable and fixed cost behavior are valid. Free essay: chapter 2 cost terms, concepts, and classifications learning objectives lo1 identify and give examples of each of the three basic manufacturing. Rsm222h1f chapter 2: cost terms, concepts, and classifications purpose of cost classification cost classifications preparing external financial statements product costs (inventori. Costs terms, concepts and classifications chapter two learning objective identify and give examples of each of the three basic manufacturing cost categories.
Cost of warranty repairs $35,000 cost of employee quality training $27,000 cost incurred to rework fans $18,000 spoilage cost (net) $15,000 cost of handling customer complaints $11,000 depreciation cost of test equipment $6,000 cost of quality circles $5,000 maintenance cost of test equipment $3,000 cost of retesting reworked fans $2,000 cost . Cost terms, concepts, and classifications 2-2 manufacturing cost concepts financial accounting cost is a measure of resources used or given up to achieve a stated purpose. Study 40 chpt 2 cost terms, concepts, and classifications flashcards from alex b on studyblue.
Start studying managerial accounting: chapter 2 - cost terms, concepts, and classifications learn vocabulary, terms, and more with flashcards, games, and other study tools. 2-1 dr yean rithy costs terms, concepts and classifications chapter two 2-2 learning objective 1 identify and give examples of each of the three basic. Cost terms concepts and classifications are cost is defined as price of any object cost terms include direct & indirect cost, fixed & variable costs cost is classified as direct & indirect material, direct & indirect labor which also includes factory overhead. Begin by estimating the cost of any improvements on the land reproduction cost is the cost to construct the building today, replicating it in exact part 1: basic fashion and business concepts - chapter 1 the meaning of clothing and fashion.
Chapter 2 cost terms, concepts, and classifications solutions to questions 2-1 the three major elements of product goods sold section. Identify each of the three basic cost elements involved in the 2 manufacture of a into management accounting in the hospitality industry. Cost terms, concepts, and classifications subject: accounting topic: lecture in this chapter, we have looked at some of the ways in which managers classify costs . Cost and cost classifications cost is a sacrifice of resources to obtain a benefit or any other resource for example in production of a car, we sacrifice material, electricity, the value of machine's life (depreciation), and labor wages etc.