that cannot be traced directly to a product, department, or process. Example: Depreciation

A. The process of dividing a cost into parts and apportioning among cost objects. B. Items for which managers need to know the cost. Examples include products and departments. C. Factor determined by taking the total cost to be allocated and dividing by the appropriate cost driver. D. The stage in the production process where joint products become separate and identifiable. E. Costs that cannot be easily traced to a cost object. F. Adding together many costs to determine the cost of a cost object. G. Two or more products that emerge from a common process. H. Another term used for a cost driver. 1. A factor such as a measure of activity that causes costs to increase or decrease. J. Common costs that are incurred in the process of making two or more products. K. Costs that are easily traced to a cost object. L. The amount of resources that must be sacrificed to obtain some benefit. M. A collection of individual costs that are added together and then allocated to cost objects. N. Indirect costs of doing business that cannot be traced directly to a product, department, or process. Example: Depreciation