Details Title: 2101 Description: Chapter 4 Total Flash Cards: 5 Created: 02/17/2009 22:18:27		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Accounting Flashcards
Cards in this set: Term Direct labor is still often the appropriate basis for assigning overhead costs when Definition Direct labor constitutes a significant part of total product cost and High correlation exists between direct labor and changes in overhead costs. Term Limitations of ABC Definition -Can be expensive to use -Some arbitrary allocations continue Term Reason ABC is a more adequate cost system Definition -Use of more cost pools to assign overhead costs -Enhanced control over overhead costs -Better management decisions Term Use ABC When One or More of the Following Exist: Definition -Products differ greatly in volume/manufacturing complexity -Products lines are Numerous,Diverse and Require different degrees of support services -Overhead costs are a significant portion of total costs -Significant change in manufacturing process or number of products -Managers ignore data from existing system and instead use “bootleg” costing data Term Look At JIT Slide 4: 15-16 Definition