anything for which a cost measure is desired. (an item or entity to which costs are assigned) cost object example 1: Product: a BMW X6 sports activity vehicle. cost object example 2: Service: Telephone hotline providing information and assistance to BMW dealers. ...
3. Compute output in terms of equivalent units4. compute the cost per equivalent unit5. Assign total costs to: - units completed -units in ending WIP inventory Equivalent units Rather than use physical units to assign costs, we use a measure that captures the work we did this period ...
Two components of the HC method Wage rate (should include fringe benefits) and missed time How do we measure productivity loss for a homemaker 1) Opportunity cost of time2) Replacement cost Opportunity cost of time If the homemaker would choose to enter the labor market, what could be earned...
transfer pricing policy based on a measure of cost plus an allowance for profit (markup) Dual Transfer Pricing transfer pricing system that charges the buying division with costs only and credits the selling division with cost plus some profit allowance ...
- additional efforts required to measure and report the quantity work accomplished (effort to determine actual amount completed) - such contracts could draw unbalanced bidding cost plus contract definition where the contractor works on the project and is reimbursed by the owner for its costs, plus ...
Sum of fixed and variable costs at any activity level. Activity Base Measure that influences the incurrence of variable costs. Examples of Fixed Costs Depreciation, real estate taxes, advertising, R&D. Variable Cost Examples Ice cream cost and napkin cost at a shop. ...
cost behaves relative to a changes in a related activity measure., a timeframe is specified to indicate how far into the future a cost should be examined and a particular rangle of activity is assumed and is refered to as the relevant range. ...
- costs are fixed/variable WRT some output measure/driver - in long run, all costs = variable Cost Driver - causal factor measuring output of activity that leads/causes cost to change Relevant Range - range of output over which assumed cost relationship is valid for normal operations of firm...
用Quizlet學習並牢記包含When a company is labor-intensive, the cost driver that is probably least significant would be、An activity driver is used for which of the following reasons: measure demands, measure resources consumed、The term cost driver refers
According to the U.S. Supreme Court, what condition(s) is(are) necessary to prove that predatory pricing has occurred? A. The predator company charges a price below an "appropriate measure of cost." B. The predator company has a reasonable prospect of recovering in the future, through lar...