Group 11, Cluster 5

5. a predetermined, budgeted, or actual cost per unit of activity used to allocate overhead, labor, or machine costs to products, services, or departments.
8. used to segregate mixed costs into fixed and variable components by plotting historical cost data against activity
13. An item of cost for which the optimum amount that should be spent can be estimated. It has a clear relationship to output.
15. the second stage where the conversion of raw materials into finished products will take place
16. These are costs which the size or the time of incurrence is a matter of choice.
18. The total of direct materials and direct labor used in production.
20. A permanent reduction in the carrying value of an asset.

1. an irregular shifting back and forth or up and down in the level, strength, or value of something
2. assigning direct costs to a costing object
3. Refers to the costs directly related to the marketing of a company's products such as storage costs, advertising, commissions, salesmen's salaries and shipping costs.
4. The practicality of tracing or allocating a cost.
6. costs associated with the next unit or an incremental cost associated with additional unit produced or sold.
7. The initial stage of production where all the required materials are procured.
9. It is composed of indirect materials used, indirect labor, and other expenses incurred in the production.
10. Are hypothetical costs representing the cost or value of a resource measured by its use value.
11. it enables measurement of the extent to which objectives are reached.
12. monetary value of resources used or sacrificed to produce goods or services
14. The highest point of activity the costs were out of line from the normal relationship.
17. is a factor that causes or influences the amount of cost incurred.
19. the last stage where the finished products are completely delivered and the company declared sales in the process