1
This term is somewhat misleading because it seems to imply unprocessed natural resources like wood pulp or iron ore. Go into the final product.
2
Is the potential benefit that is given un when one alternative is selected over another.
3
Includes a portion of raw material know as indirect materials as well as indirect labor.
4
Is a cost cannot be easily and conveniently traced to a specified cost object.
5
Can be obtained from selling one more unit of product and the cost involved in producing one more unit of product.
6
They are all the costs that must be considered when carrying out an analysis to make a decision.
7
Include all cost involved in acquiring or making a product. They are also known as inventoriable costs
8
Is a cost that can be easily and conveniently traced to a specified cost object.
9
Contains both variable and fixed cost elements.
10
Is a cost that has already been incurred and that cannot be changed by any decision made now or in the future.
