Lesson 1a Summary

You are now familiar with a variety of cost accounting terms. Think about your understanding of each one as we review the list.

• Cost
• Cost objects
• Cost pools
• Unit/average cost
• Marginal and variable cost
• Cost assignment
• Cost tracing
• Cost allocation
• Cost drivers
• Cost allocation bases

If you are not comfortable with any one of these terms, review it again. These terms are fundamental to any study of cost or managerial accounting and any lack of understanding will cause you problems later.

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