Accounting Question

Overview

1. Look at your study area and select any one cost object you see. Is it a result of a manufacturing, merchandising or service sector, or a combination? Describe this cost object and assign the types of potential costs to that object.
2. Going through each of the five-step process in chapter one, briefly describe how your selected item could have been determined my management.
   1. Identify the problem and uncertainties
   2. Obtain information
   3. Make predictions about the future
   4. Make decisions by choosing among alternatives
   5. Implement the decision, evaluate performance, and learn
3. What are the three key features that help management make decisions?
4. Define: Direct cost, indirect cost, variable cost, fixed cost, relevant range, cost of goods manufactured, cost of goods sold, product cost, period cost, prime cost, and conversion cost, and give brief examples of each.