8/12/2019 CE155-Definitions of Terms Homework.docx

1/1

Material costis the cost of the raw materials and components used to create a product. Thematerials must be easily identifiable with the resulting product (otherwise they are considered tobejoint costs).

Labor cost is wages that are incurred in order to produce specific goods or provide specificservices to customers.

Contingencyhas been defined as the amount of money or time needed above the estimate toreduce the risk of overruns of project objectives to a level acceptable to the organization

Costis usually amonetaryvaluation of (1) effort, (2)material,(3)resources,(4) timeandutilities consumed, (5)risksincurred,and (6)opportunity forgoneinproduction anddelivery of a good orservice.Allexpenses arecosts,but not all costs (suchas those incurred inacquisition of an income-generatingasset)are expenses.

Amountis a quantity of something, or thesum of multiplequantities expressed as a numberthat may or may not be expressed as a number.

Inflationis a rise in the generallevel of prices of goods and services in aneconomy over a

period of time. When the general price level rises, each unit ofcurrency buys fewer goods andservices.

Mark-upamount added to thecost price of an item tocover incidentalcosts (interest,labor,taxes,utilities)and toprovide forprofit in theitem'sselling price.

Profit is the difference between the purchase and the component costs of delivered goodsand/or services and any operating or other expense. It is reflected inreduction inliabilities,increase inassets,and/or increase inowners' equity.It furnishesresources forinvesting infutureoperations,and its absence mayresult in the extinction of acompany.

Expanded Value Added Tax (E-VAT)is a form ofsales tax that is imposed on the sale of

goods and services and on the import of goods into the Philippines. It is a consumption tax(those who consume more are taxed more) and an indirect tax, which can be passed on to thebuyer. The current E-VAT rate is 12% of transactions.

Direct costis anexpense that can be traced directly to (or identified with) a specific costcenter orcost object such as adepartment,process,orproduct.Example of direct cost: such asforlabor,material,fuel orpower

Indirect costsarecosts used by multiple activities, and which cannot therefore be assigned tospecific products, services, geographical regions,customers,or othercost objects.Instead,indirect costs are needed to operate the business as a whole.

Consumbalesaregoods which (1) used up (not returned) afterissuance fromstores,(2)becomeincorporated into other goods and loose theiridentity,or (3) cannot be used for theirintended purpose without extinguishing ortransforming their substance.

Estimateis an approximation, prediction or projection of a quantity based on experience and/orinformation available at the time, with the recognition that other pertinent facts are unclear orunknown. An estimate is almost the same as an educated guess, and the cheapest (andleastaccurate)type of modeling.

http://www.accountingtools.com/definition-joint-costhttp://www.businessdictionary.com/definition/monetary.htmlhttp://www.businessdictionary.com/definition/valuation.htmlhttp://www.businessdictionary.com/definition/material.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.businessdictionary.com/definition/utility.htmlhttp://www.businessdictionary.com/definition/risk.htmlhttp://www.businessdictionary.com/definition/incurred.htmlhttp://www.businessdictionary.com/definition/opportunity.htmlhttp://www.businessdictionary.com/definition/production.htmlhttp://www.businessdictionary.com/definition/delivery.htmlhttp://www.businessdictionary.com/definition/final-good-service.htmlhttp://www.businessdictionary.com/definition/expense.htmlhttp://www.businessdictionary.com/definition/costs.htmlhttp://www.businessdictionary.com/definition/acquisition.htmlhttp://www.businessdictionary.com/definition/asset.htmlhttp://www.businessdictionary.com/definition/sum.htmlhttp://www.businessdictionary.com/definition/quantity.htmlhttp://en.wikipedia.org/wiki/Price_levelhttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Currencyhttp://www.businessdictionary.com/definition/amount.htmlhttp://www.businessdictionary.com/definition/cost.htmlhttp://www.businessdictionary.com/definition/cover.htmlhttp://www.businessdictionary.com/definition/costs.htmlhttp://www.businessdictionary.com/definition/interest.htmlhttp://www.businessdictionary.com/definition/labor.htmlhttp://www.businessdictionary.com/definition/utility.htmlhttp://www.businessdictionary.com/definition/provide.htmlhttp://www.businessdictionary.com/definition/profit.htmlhttp://www.businessdictionary.com/definition/item.htmlhttp://www.businessdictionary.com/definition/selling-price.htmlhttp://www.businessdictionary.com/definition/reduction.htmlhttp://www.businessdictionary.com/definition/liability.htmlhttp://www.businessdictionary.com/definition/asset.htmlhttp://www.businessdictionary.com/definition/owners-equity.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.businessdictionary.com/definition/investing.htmlhttp://www.businessdictionary.com/definition/operations.htmlhttp://www.businessdictionary.com/definition/result.htmlhttp://www.businessdictionary.com/definition/company.htmlhttp://en.wikipedia.org/wiki/Sales_taxhttp://www.businessdictionary.com/definition/expense.htmlhttp://www.businessdictionary.com/definition/cost-center.htmlhttp://www.businessdictionary.com/definition/cost-center.htmlhttp://www.businessdictionary.com/definition/cost-object.htmlhttp://www.businessdictionary.com/definition/department.htmlhttp://www.businessdictionary.com/definition/process.htmlhttp://www.businessdictionary.com/definition/product.htmlhttp://www.businessdictionary.com/definition/labor.htmlhttp://www.businessdictionary.com/definition/material.htmlhttp://www.businessdictionary.com/definition/fuel.htmlhttp://www.businessdictionary.com/definition/power.htmlhttp://www.accountingtools.com/definition-costhttp://www.accountingtools.com/customer-definitionhttp://www.accountingtools.com/questions-and-answers/what-is-a-cost-object.htmlhttp://www.businessdictionary.com/definition/goods.htmlhttp://www.businessdictionary.com/definition/issuance.htmlhttp://www.businessdictionary.com/definition/stores.htmlhttp://www.businessdictionary.com/definition/incorporation.htmlhttp://www.businessdictionary.com/definition/identity.htmlhttp://www.businessdictionary.com/definition/transformer.htmlhttp://www.businessdictionary.com/definition/accurate.htmlhttp://www.businessdictionary.com/definition/accurate.htmlhttp://www.businessdictionary.com/definition/transformer.htmlhttp://www.businessdictionary.com/definition/identity.htmlhttp://www.businessdictionary.com/definition/incorporation.htmlhttp://www.businessdictionary.com/definition/stores.htmlhttp://www.businessdictionary.com/definition/issuance.htmlhttp://www.businessdictionary.com/definition/goods.htmlhttp://www.accountingtools.com/questions-and-answers/what-is-a-cost-object.htmlhttp://www.accountingtools.com/customer-definitionhttp://www.accountingtools.com/definition-costhttp://www.businessdictionary.com/definition/power.htmlhttp://www.businessdictionary.com/definition/fuel.htmlhttp://www.businessdictionary.com/definition/material.htmlhttp://www.businessdictionary.com/definition/labor.htmlhttp://www.businessdictionary.com/definition/product.htmlhttp://www.businessdictionary.com/definition/process.htmlhttp://www.businessdictionary.com/definition/department.htmlhttp://www.businessdictionary.com/definition/cost-object.htmlhttp://www.businessdictionary.com/definition/cost-center.htmlhttp://www.businessdictionary.com/definition/cost-center.htmlhttp://www.businessdictionary.com/definition/expense.htmlhttp://en.wikipedia.org/wiki/Sales_taxhttp://www.businessdictionary.com/definition/company.htmlhttp://www.businessdictionary.com/definition/result.htmlhttp://www.businessdictionary.com/definition/operations.htmlhttp://www.businessdictionary.com/definition/investing.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.businessdictionary.com/definition/owners-equity.htmlhttp://www.businessdictionary.com/definition/asset.htmlhttp://www.businessdictionary.com/definition/liability.htmlhttp://www.businessdictionary.com/definition/reduction.htmlhttp://www.businessdictionary.com/definition/selling-price.htmlhttp://www.businessdictionary.com/definition/item.htmlhttp://www.businessdictionary.com/definition/profit.htmlhttp://www.businessdictionary.com/definition/provide.htmlhttp://www.businessdictionary.com/definition/utility.htmlhttp://www.businessdictionary.com/definition/labor.htmlhttp://www.businessdictionary.com/definition/interest.htmlhttp://www.businessdictionary.com/definition/costs.htmlhttp://www.businessdictionary.com/definition/cover.htmlhttp://www.businessdictionary.com/definition/cost.htmlhttp://www.businessdictionary.com/definition/amount.htmlhttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Price_levelhttp://www.businessdictionary.com/definition/quantity.htmlhttp://www.businessdictionary.com/definition/sum.htmlhttp://oascentral.businessdictionary.com/RealMedia/ads/click_lx.ads/www.businessdictionary.com/businessdictionary/banking_standalone/1246386758/Bottom/default/empty.gif/636d7a576b46494a6f5045414159476b?xhttp://www.businessdictionary.com/definition/asset.htmlhttp://www.businessdictionary.com/definition/acquisition.htmlhttp://www.businessdictionary.com/definition/costs.htmlhttp://www.businessdictionary.com/definition/expense.htmlhttp://www.businessdictionary.com/definition/final-good-service.htmlhttp://www.businessdictionary.com/definition/delivery.htmlhttp://www.businessdictionary.com/definition/production.htmlhttp://www.businessdictionary.com/definition/opportunity.htmlhttp://www.businessdictionary.com/definition/incurred.htmlhttp://www.businessdictionary.com/definition/risk.htmlhttp://www.businessdictionary.com/definition/utility.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.businessdictionary.com/definition/material.htmlhttp://www.businessdictionary.com/definition/valuation.htmlhttp://www.businessdictionary.com/definition/monetary.htmlhttp://www.accountingtools.com/definition-joint-cost