Cost Concepts

6. A measure of whatever causes the incurrence of a variable cost.
7. All costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer.
9. A cost that varies, in total, in direct proportion to changes in the level of activity.
10. All costs that are involved in acquiring or making a product.
11. Materials that become an integral part of a finished product and whose costs can be conveniently traced to it.
13. If expressed on a per unit basis, it varies inversely with the level of activity.
14. A cost that has already been incurred and that cannot be changed by any decision made now or in the future.
15. A cost that can be easily and conveniently traced to a specified cost object.

1. All executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing or selling.
2. All manufacturing costs except direct materials and direct labor.
3. A cost that contains both variable and fixed cost elements.
4. Direct materials cost plus direct labor cost.
5. Factory labor costs that can be easily traced to individual units of product.
8. Costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued.
12. Direct labor cost plus manufacturing overhead cost.