Page 11 - UNISA Manac Cost Course Slides Part 1
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TEST 3 - COSTING
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 e.g.
• The lodge is charging R100 per night
• It cost R450 per consultation hour to see a medical
specialist.
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