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Direct labour and materials are relatively easy to trace directly to products, but it is more difficult to directly allocate indirect costs to products. Where products use common resources differently, some sort of weighting is needed in the cost allocation process. The cost driver is a factor that creates or drives the cost of the activity ...
Cost distance analysis. In spatial analysis and geographic information systems, cost distance analysis or cost path analysis is a method for determining one or more optimal routes of travel through unconstrained (two-dimensional) space. [1] The optimal solution is that which minimizes the total cost of the route, based on a field of cost ...
Cost allocation. Cost allocation is a process of providing relief to shared service organization's cost centers that provide a product or service. In turn, the associated expense is assigned to internal clients' cost centers that consume the products and services. For example, the CIO may provide all IT services within the company and assign ...
e. Cost accounting is defined by the Institute of Management Accountants as "a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. It includes methods for recognizing, allocating, aggregating and reporting such costs and comparing them ...
Allocation of Business Unit General and Administrative Expenses to Final Cost Objectives 411: Accounting for Acquisition Costs of Material 412: Composition and Measurement of Pension Costs 413: Adjustment and Allocation of Pension Cost 414: Cost of Money as an Element of the Cost of Facilities Capital 415: Accounting for the Cost of Deferred ...
Cost engineering is "the engineering practice devoted to the management of project cost, involving such activities as estimating, cost control, cost forecasting, investment appraisal and risk analysis". [1] ". Cost Engineers budget, plan and monitor investment projects. They seek the optimum balance between cost, quality and time requirements."