cluster 1

2. Fixed costs that managers can change on short notice without major impacts
3. Weekly or monthly summaries of all costs are prepared and entered on the job order ____.
5. Involves estimating the fixed and variable elements of a mixed cost visually on a graph.
8. The process of grouping costs based on their common characteristics.
12. Indirect costs incurred by different departments that provide assistance to the operating units.
15. Enables measurement of the extent to which objectives are reached.
16. One of the components of both manufacturing costs and prime cost. May either form part of the finished product or be consumed to create the finished product.
17. These are hypothetical costs which are not considered in the company’s regular cost such as interest on invested capital and the rental value of company-owned properties.
19. Costs incurred to improve the sales level or to obtain a desirable sales mix.
20. It is a point representing a cost or its related level of activity that is out of line from the normal relationship.

1. Represents total cost of goods completed during the current period.
4. Refer to variable marketing costs.
6. These are expended labor which are supervisory in nature and whose services are essential to factory operations but do not work directly on the product.
7. The key to a managerial job and the basis for responsibility.
9. position that cost accountant or accountant in general holds.
10. A factor that influences the amount of cost incurred
11. The process by which costs move through the organization – from the initial purchase to the production of goods and ultimately to the recognition of expenses on the income statement.
13. These are the total costs incurred by the business’s workforce which includes production efficiency bonuses and cost of living allowances.
14. Developed to address limitations of traditional costing methods.
18. This method relies exclusively on two extreme data points, ignoring all data points other than the highest and lowest activity levels.