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What two types of costs are assigned to a cost object?
EncofBizandFinance
Costs assigned to a cost object are either direct or indirect.
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∙ 13y ago
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Fixed costs are those costs which are?
Fixed costs are assigned to all products. Variable costs are assigned only to the product that led to the cost.
Direct costs and indirect costs?
Direct costs- can be conveniently and economically traced to a cost object Indirect costs- cannot be conveniently or economically traced to a cost object. Instead of being traced, these costs are allocated to a cost object in a rational and systematic manner
What type of cost should not be assigned to products in an activity-based costing system?
Organization-sustaining costs, customer-level costs, and the costs of idle capacity should not be assigned to products. These costs represent resources that are not consumed by the products.
Are all costs variable?
Direct Cost are those costs that can be directly assigned to a production process. Indirect cost were those costs that cannot be directly assigned to production process but have to allocate to production. Variable costs are those costs that vary directly with the production level. Only Direct cost could be variable . But not all direct cost are variable. Thus direct cost contains both Variable and Fixed elements while indirect costs contains only fixed element.
Will a direct cost be allocated to the cost object?
i think only indirect costs
Can direct cost be indirect cost?
The Answer is NO. Direct costs are direct cost which can be clearly/economicaly identified with the cost object, indirect costs cannot be traced to a specific cost object, based on the definition direct cos cant be an indirect cost (Misdhaaque Ahmed)
Are all direct costs variable?
Direct Cost are those costs that can be directly assigned to a production process. Indirect cost were those costs that cannot be directly assigned to production process but have to allocate to production. Variable costs are those costs that vary directly with the production level. Only Direct cost could be variable . But not all direct cost are variable. Thus direct cost contains both Variable and Fixed elements while indirect costs contains only fixed element.
What is the first step in activity based costing?
Costs are assigned to activities from resource cost pools.
What is the first step in activity-based costing?
Costs are assigned to activities from resource cost pools.
Different types of costs of production?
production cost, selling cost and sundry cost
What types of cost are included in the cost of living?
Cost of living typically includes expenses such as housing, food, transportation, utilities, healthcare, and childcare. These are all essential costs needed to maintain a basic standard of living in a specific area.
What is a cost structure?
The expenses that a firm must take into account when manufacturing a product or providing a service. Types of cost structures include transaction costs, sunk costs, marginal costs and fixed costs. The cost structure of the firm is the ratio of fixed costs to variable costs.
