COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the difference between sales revenue and cost of goods sold.
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the benefit given up or sacrificed when on alternative is chosen over another.
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the amount of cash or cash equivalent sacrificed for goods and/or services that are expected to bring a current or future benefit to the organization.
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the revenue per unit
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Detailed explanation-1: -Cost is the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future benefit to the organization. Expenses are the expired costs that have been used up in the production of revenues. A loss is a cost that expires without producing any revenue benefit.
Detailed explanation-2: -COST: Definition “Cost is the cash or cash-equivalent value sacrificed for goods and services that is expected to bring a current or future benefit to the organization.”
Detailed explanation-3: -Allocation means that an indirect cost is assigned to a cost object using a reasonable and convenient method.
Detailed explanation-4: -A direct cost can be traced to the cost object, which can be a service, product, or department. Direct and indirect costs are the two major types of expenses or costs that companies can incur. Direct costs are often variable costs, meaning they fluctuate with production levels such as inventory.
Detailed explanation-5: -The correct option is (D) Building maintenance.