Details Title: A202 Chapter 2 definitions Description: Definitions Total Flash Cards: 39 Created: 05/12/2008 12:49:56		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 Administrative Cost Definition All executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing or selling Term Common Cost Definition A cost that is incurred to support a number of cost objects but that cannot be traced to them individually Term Conversion Cost Definition Direct labor cost + Manufacturing Overhead Cost Term Cost Behavior Definition The way in which a cost reacts to changes in the level of activity Term Cost Object Definition Anything for which cost data are desired (products, customers, jobs, and parts of the organization such as departments or divisions) Term Cost of Goods Manufactured Definition The manufacturing costs associated with the goods that were finished during the period Term Differential Cost Definition A difference in cost between two alternatives Term Differential Revenue Definition The difference in revenue between two alternatives Term Direct Cost Definition A cost that can be easily and conveniently traced to a specified cost object Term Direct Labor Definition Factory labor costs that can be easily traced to individual units of product Term Direct Materials Definition Materials that become an integral part of a finished product and whose costs can be conveniently traced to it Term Finished Goods Definition Units of product that have been completed but not yet sold to customers Term Fixed Cost Definition A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range Term Incremental Cost Definition An increase in cost between two alternatives Term Indirect Cost Definition An increase in cost between two alternatives Term Indirect Labor Definition The labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be conveniently traced to particular products Term Indirect materials Definition Small items of material such as glue and nails that may be an integral part of a finished product, but whose costs cannot be easily or conveniently traced to it Term Manufacturing Overhead Definition All manufacturing costs except direct materials and direct labor Term Opportunity Cost Definition The potential benefit that is given up when one alternative is selected over another Term Period Costs Definition Costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued Term Prime Cost Definition Direct Materials Cost + Direct Labor Cost Term Product Cost Definition All costs that are involved in acquiring or making a product Term Raw Materials Definition Any materials that go into the final product Term Relevant Range Definition The range of activity within which assumptions about variable and fixed cost behavior are valid Term Schedule of Cost of Goods Manufactured Definition A schedule showing the direct materials, direct labor, and manufacturing overhead costs incurred during a period and the portion of those costs that are assigned to Work in Process and Finished Goods Term Selling Costs Definition All costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer Term Sunk Cost Definition A cost that has already been incurred and that cannot be changed by any decision made now or in the future Term Variable Cost Definition A cost that varies, in total, in direct proportion to changes in the level of activity Term Work in Process Definition Units of product that are only partially complete Term Appraisal Costs Definition Costs that are incurred to identify defective products before the products are shipped to customers Term External Failure Costs Definition Costs that are incurred when a product or service that is defective is delivered to a customer Term Internal Failure Costs Definition Costs taht are incurred as a result of identifying defective products before they are shipped to customers Term ISO 9000 Standards Definition Quality control requirements issued by the International Organization for Standardization that relate to products sold in European countries Term Prevention Costs Definition Costs that are incurred to keep defects from occurring Term Quality Circles Definition Small groups of employees that meet on a regular basis to discuss ways of improving quality Term Quality Cost Definition Costs that are incurred to prevent defective products from falling into the hands of customers or that are incurred as a result of defective units Term Quality Cost Report Definition A report that details prevention costs, appraisal costs, and the costs of internal and external failures Term Quality of Conformance Definition The degree to which a product or service meets or exceeds its design specifications and is free of defects or other problems that mar its appearance or degrade its performance Term Statistical Process Control Definition A charting technique used to monitor the quality of work being done in a workstation for the purpose of immediately correcting any problems