WIP Partially completed products
Finished goods Product ready for sale cost driver Characteristic of an activity or event that causes that activity or event to incur costs (i.e. # of machine setup labour is driven by # of production runs
variable costs Cost that changes in total in proportion to a change in the activity volume fixed costs Cost that remains unchanged in total as the volume of activity changes unit-level costs Cost incurred for every unit of product manufactured or service produced batch-level costs Costs incurred for every batch or product or service produced product-level costs Costs incurred for each line of product or service customer-level costs Costs incurred for specific customers facility (or general-operations) level costs Costs incurred to maintain the organization’s overall facility and infrastructure committed costs Costs for which mgmt. has taken actions that result in some level of commitment to incur the cost opportunity costs The forgone benefit that could have been realized from the best alternative use of a resource sunk costs Past payments for resources that cannot be changed by any current or future decision indirect costs The cost of a cost object that is not feasibly traceable to that cost object direct costs The cost of a cost object that is traceable to that cost object cost object Any entity to which a cost is assigned (i.e. a decision, a unit of inventory, a