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(WIP) ACC 350 Exam 1 Study Material

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Pg. 6 Sarah Allison

Pg. 6 Sarah Allison Takash ACC 350, Spring 2018 Exam 1 Study Material Other Terminology Definitions ​(Terms not listed in study guide) 11. Cost Classifications a. Costs can be classified ​based on​: i. Function/department: 1. R&D 2. Design 3. Production 4. Marketing 5. Distribution 6. Customer Service ii. Assignment method: 1. Direct = tracing 2. Indirect = allocation iii. Behavior: 1. Variable 2. Fixed iv. Number of units (of the cost object): 1. Total 2. Unit v. Financial statement-treatment: 1. Inventoriable a. Are assets when incurred b. Later expensed as COGS c. Include ONLY Manufacturing/Production costs (WIP & FG) i. DM - direct materials ii. DL - direct labor iii. MOH - manufacturing overhead 2. Period (“SG&A”) a. Are expenses in the period incurred b. Include any costs outside of the manufacturing function c. Examples: i. Company officers’ compensation ii. Office supplies, utilities, computers & staff

Pg. 7 Sarah Allison Takash ACC 350, Spring 2018 Exam 1 Study Material iii. Marketing, sales, & finance staff b. Image summarizing cost classifications other than product/service costs (below): 12. Semi-variable costs a. Have both fixed and variable components b. Examples: i. Phone bill that has a monthly fixed cost plus a per-minute used, variable cost Complete List of Terms ​(From end of chapters)