Page 6 - PowerPoint Presentation

RECAP

Cost Terms And Concepts

• Bear in mind that the classification of costs will vary

between organisations and within a particular

organisation according to a particular management

function.

• The most fundamental cost term that we will

encounter in Management Accounting are ‘cost

object’ and ‘relevant range’

• A cost object is any activity, unit or phenomenon

for which cost can be accumulated and measured

• The lodge is charging R100 per night

• It cost R450 per consultation hour to see a medical

specialist.

6