Accounting Revision Notes for Test
A cost object is an item which is assigned a separate measure of cost.
A variable cost is a cost that changes whilst a fixed cost doesn't change.
A direct cost is a cost that can be identified with or traced to a particular cost object in an economic manner (i.e. paper from a text book). Whereas an indirect cost is a cost that cannot be identified with or traced to a cost object in an economic manner (i.e. the glue that binds the book together). Instead this cost is put under management overhead.
Costs can be called 'controllable' or 'uncontrollable'. …
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