Student Reviews
( 5 Of 5 )
1 review
Video of Basic Cost Accounting Terms Cost Accounting CPA Exam BAR CMA Exam in Costs Accounting course by Farhat Lectures. The # 1 CPA & Accounting Courses channel, video No. 6 free certified online
What are the basic terms used in cost accounting? In this cost and managerial accounting lecture, Professor Farhat defines the fundamental concepts of cost accounting, including cost, cost object, cost pool, direct versus indirect costs, and cost allocation and cost drivers, illustrated with a practical example. CPA and CMA candidates and accounting students will find this essential BAR exam foundation.
Try it free at farhatlectures.com — interactive exercises, lectures, simulations, cases, multiple choice, and AI tools for CPA, CMA, EA and students.
Video Timeline & Key Concepts:
0:00 — Introduction
0:11 — Definition of cost
0:38 — Cost object
2:38 — Cost pool
3:49 — Direct vs. indirect costs
4:41 — Cost allocation and cost drivers
5:53 — Practical example: manufacturing appliances
Frequently Asked Questions:
What is a cost object?
A cost object is anything for which a company wants to collect cost information, such as a product, service, customer, department, or project.
What is a cost pool?
A cost pool is a logical grouping of individual costs that are combined to make them easier to manage and assign to cost objects.
What is the difference between direct and indirect costs?
Direct costs, such as direct materials and direct labor, can be easily and economically traced to a specific cost object, while indirect costs, such as manufacturing overhead, cannot be traced directly and must be allocated.
What is a cost driver?
A cost driver is the activity or factor that causes a cost to be incurred and is used as the basis for allocating indirect costs to cost objects.
Is this tested on the CPA exam?
Yes. Basic cost accounting terminology is tested in the BAR section and on the CMA exam.
#CPAexam #CMAexam #enrolledagentexam #accountingcourses #collegecourses #courses #BAR #costaccounting #costterms #managerialaccounting #ProfessorFarhat