An area of accounting that involves measuring, recording, and reporting service or product costs

The study of how specific costs respond to changes in the level of business activity.

The sum of labor costs and overhead costs.

Any segment or element for which cost information is desired. A product, service, project, activity, department, division, or customer, etc.

The cost of products or services sold.

A measure of the work done during the period, expressed in fully completed units.

The inventory of fully completed goods or services.

Costs that remain the same in total regardless of changes in the activity level.

These can’t be directly traced to the product; instead, these costs are allocated, based on some level of activity. For example, overhead costs are considered indirect costs.

A form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job.

A cost accounting system in which costs are assigned to each job or batch.

All costs related to the production of goods.

Costs that contain both a variable and a fixed cost element and change in total but not proportionately with changes in the activity level.

The ongoing expenses of operating a business. They are all costs on the income statement except for direct labor, direct materials, and direct expenses.

Cost that are expensed in the period in which incurred.

Actual units to be accounted for during a period, irrespective of any work performed.

A rate based on the relationship between estimated annual overhead costs and expected annual operating activity, expressed in terms of a common activity base.

The sum of direct labor costs and direct material costs.

A system of accounting used when a large quantity of similar products are manufactured.

Costs associated with producing a product that are capitalized in the inventory, i.e., become assets until the products are sold.

Materials or substances used in the production of goods or services.

The range of the activity index over which the company expects to operate during the year.

Costs that are irrevocable, or unavoidable and therefore not relevant.

Costs expressed in terms of equivalent units of production.

The inventory of partially completed goods or services.

Costs that vary in total directly and proportionately with changes in the activity level.

Cost accounting

Cost behavior analysis

Conversion costs

Cost object

Cost Of Goods Sold

Equivalent units of production

Finished Goods

Fixed costs

Indirect costs

Job cost sheet

Job order cost system

Manufacturing costs

Mixed costs

Overhead costs

Period costs

Physical units

Predetermined overhead rate

Prime costs

Process cost system

Product costs

Raw materials

Relevant range

Sunk costs

Unit production costs

Work-In-Process

Variable costs