Terms to Learn

This chapter contains more basic terms than any other in this text. Do not proceed before you check your understanding of the following terms. The chapter and the Glossary at the end of the text contain definitions of the following important terms:

  1. actual cost
  2. average cost
  3. budgeted cost
  4. conversion costs
  5. cost
  6. cost accumulation
  7. cost allocation
  8. cost assignment
  9. cost driver
  10. cost object
  11. cost of goods manufactured
  12. cost tracing
  13. direct costs of a cost object
  14. direct manufacturing labor costs
  15. direct materials costs
  16. direct materials inventory
  17. factory overhead costs
  18. finished-goods inventory
  19. fixed cost
  20. idle time
  21. indirect costs of a cost object
  22. indirect manufacturing costs
  23. inventoriable costs
  24. manufacturing overhead costs
  25. manufacturing-sector companies
  26. merchandising-sector companies
  27. operating income
  28. overtime premium
  29. period costs
  30. prime costs
  31. product cost
  32. relevant range
  33. revenues
  34. service-sector companies
  35. unit cost
  36. variable cost
  37. work-in-process inventory
  38. work in progress