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An Introduction to Cost terms and Purposes

An Introduction to Cost terms and Purposes. Session 2. Learning Objectives. Define and illustrate a cost object Distinguish between direct costs and indirect costs Explain variable costs and fixed costs Interpret unit costs with caution

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Learning Objective 1

Define and illustrate a cost object. Chapter 2 - An Introduction to Cost Terms and Purposes. Learning Objective 1. Cost and Cost Terminology. Cost is a resource sacrificed or forgone to achieve a specific objective. An actual cost is the cost incurred (a historical cost)

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Cost and Cost Terminology

Cost and Cost Terminology. Cost is a resource sacrificed or forgone to achieve a specific objective. An actual cost is the cost incurred (a historical cost) as distinguished from budgeted costs. A cost object is anything for which a separate measurement of costs is desired.

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Use unit costs cautiously - PowerPoint PPT Presentation

An Introduction to Cost terms and Purposes

Learning Objective 1

Cost and Cost Terminology