The name of this course is "Cost Accounting". So, what's a "cost"? WHY do we need to understand what this term means? 2. What's an expense? Is this the same as a cost or something different? If different, HOW are they different? WHY is it important? 3. Harry is an English major who lives on the planet Zutron. He has a number of questions. First, he asks: "I've heard about this term financial accounting? What's that?" What do you tell him and WHY is it important? 4. Harry also asks, "What's management (or managerial) accounting?" What do you tell him and WHY is it important? 5. What's cost accounting? WHY is it important? 6. Costs can be described in several different ways. Explain the meaning of each of the following classifications and WHY each one is important: a. Behavior - variable or fixed b. Traceability - direct or indirect c. Function - product or period d. Controllability - controllable or non-controllable e. Relevance - relevant or irrelevant 7. Harry wants to know what a balance sheet is and what an income statement is? What information do they each convey? 8. What are revenues?

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1 Whats a cost A cost refers to the monetary value of resources used or consumed in producing goods or services Understanding the concept of cost is essential as it forms the basis for pricing decisio... View the full answer