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
The loss of potential gain from other alternatives when one alternative is chosen. This helps individuals and organizations make better choices by considering the alternatives.
3
Is all indirect costs incurred during the production process. This
cost is applied to the units produced within a reporting period.
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
Is a cost composed of a mixture of both fixed and variable components. Costs are fixed for a set level of production or consumption, and they become variable after this production level is exceeded.
10
Is a cost that has already been incurred and that cannot be changed by any decision made now or in the future. Money that has been spent and cannot be recovered
