14. Variable costs: costs that tend to vary in total in direct proportion or in a one-to-one relationship to changes in production activity, sales activity or some other measure of volume are referred to as variable costs within relevant range for given budgeted period
17. Future Costs: Costswhich are reasonably expected to be incurred at some future date as a result of a current decision are called future costs.
20. Direct & Indirect Costs: those costs which can be identified logically and practically in their entirety to a particular department or a product are called direct costs.Those costs which are not particularly identifiable exclusively and wholly to a particular product, division or segment are called indirect costs or common costs.
23. Long range (capacity decisions) which cover a long time span and take into account the time value of money.
25. Example: cost of material and direct labor (variable cost) and fixed costs (for creating new facilities)
26. Cost which is not affected by a decision is irrelevant cost.
29. Opportunity & Imputed Costs: opportunity costs represent the benefits foregone by not choosing the second best alternative in favour of the best one.
30. Imputed costs are similar to the opportunity costs in that they are not recorded in the accounting books however they are hypothetical costs that must be taken into account if a correct decision is to be arrived at.