It measures and reports financial and non-financial information related to the cost of acquiring and using resources

Amount remaining from revenue obtained after all variable costs have been paid

It's the general term for assigning costs (direct or indirect) to a cost object

A mathematical description of how a cost changes with changes in the level of an activity relating to that cost

Product consumes high level of resources but is allocated low costs per unit

It identifies, reports and analyzes costs of operations

The unit sales price - unit variable cost

It's any logical grouping of related cost objects

1. Variable costs
2. Fixed costs
3. Mixed Costs

Product consumes a low level of resources but is allocated high costs per unit

It focuses on reporting to external parties (investors, regulators and others) with the goal of fairly presenting the economic health of a company

Where the total revenue equals the total cost

The cost object is a unit (or multiple units) of a distinct product or service, each job may be different from the next and consumes different resources

1. Industrial Engineering Method
2. Conference Method
3. Account Analysis Method
4. Quantitative Analysis Methods

Simple costing allocates total overhead using one allocation rate

A sequence of business functions that add usefulness to products or services

Measures "what" happens to profit "if":
- selling price changes
- volume changes
- cost structure changes

The cost object is many units of identical or similar products or services

It estimates cost functions by anaylzing the relationship between inputs and outputs in physical terms

It identifies activiites in all value chain functions, calculates costs of individual activities and assigns costs to products or services based on the mix of activities needed to produce the product or service

It describes the flow of goods, services and information

The excess of budgeted revenues over breakeven revenues

Manufacturing overhead control and manufacturing overhead allocated.

It estimates cost functions on the basis of analysis and opinions about costs and their drivers gathered from various departments of a company

The separation of one indirect cost pool into cost pools according to the level at which activities contribute to producing output