- Materials that become an integral part of a finished product and whose costs can be conveniently traced to it. - The way in which a cost reacts to changes in the level of activity. - All costs that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead. Also referred to as product costs. - All manufacturing costs except direct materials and direct labor. - The amount remaining from sales revenues after all variable expenses have been deducted. A. Cost Structure B. Contribution Margin C. Fixed Costs D. Gross Margin E. Inventoriable Costs OF. Direct Materials G. Manufacturing Overhead H. Raw Materials I. Cost Behavior