Variable cost
A cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is constant per unit. (p. 52)
Sunk cost
A cost that has already been incurred and that cannot be changed by any decision made now or in the future. (p. 58)
Selling costs
All costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer. (p. 41)
Schedule of cost of goods manufactured
A schedule showing the direct materials, direct labor, and manufacturing overhead costs incurred during a period and the portion of those costs that are assigned to Work in Process and Finished Goods. (p. 47)
Relevant range
The range of activity within which assumptions about variable and fixed cost behavior are valid. (p. 53)
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