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Acct Final
final acct
57
Accounting
Undergraduate 4
05/11/2015

Additional Accounting Flashcards

 


 

Cards

Term
Cost object
Definition
anything for which a cost measurement is desired.
Term
Cost accumulation
Definition
the collection of cost data in an organized way by means of an accounting system.
Term
The difference between actual costing and normal costing
Definition
Normal costing uses actual quanities
Term
Revenue Budget
Definition
Is the usual starting point for budgeting
Term
A variance is
Definition
the difference between actual result and budgeted performance.
Term
The japanses use the term kaizen when referring to.
Definition
Continuous improvement.
Term
The flexible budger vairance for direct cost inputs can be further subdivided into a
Definition
Price variance and efficency variance.
Term
Manufactoring overhead cost
Definition
In a job costing system a manufactoring firm typically uses an indirect cost rate to estimate.
Term
The advantage of using normal costing instead of actual costing.
Definition
Indirect cost are assigned to a job on a timley basis.
Term
rolling budget
Definition
It is a budget that is always available for a specified future time period.
Term
Master budget
Definition
Is the initial plan of what a company intends to accomplish in the period and evolves from both operating and financing decisions.
Term
A price variance reflects the difference between.
Definition
An actual input price and a budgeted price.
Term
Sensitivity analysis
Definition
A what if technique that examines how results will change if the orginally predicted data changes.
Term
The variances that should be investigated by management include
Definition
both favorable and unfavorable variances considered significant in the amount for the companys variances.
Term
Process costing
Definition
costing is used by a company to price homogenous products.
Term
buidling a bugetary slack includes
Definition
making budgeted targets more easily achievable
Term
Management by exception is a practice whereby managers focus more closely on
Definition
areas that are not operating as anticipated
Term
A budgeted indirect cost rate is calculated
Definition
at the begining of the year.
Term
Just in time purchasing
Definition
A demand pull system in which each component in the production line is produced immediatley as needed by the next step in the production line. Raw materials or goods are purchased so that the products are delivered just as needed for production or sales.
Term
Short run pricing
Definition
decision with a time horizon less than one year.
Term
The major influences on pricing decisions
Definition
are competition cost and customers.
Term
Carrying cost
Definition
the cost that result when a company holds an inventory of goods for sale. Relevant carrying cost of inventory consist of the sum of incremental cost plus the opportunity cost of capital.
Term
Relevant cost
Definition
cost that differ across the alternatives being considered.
Term
Opportunitie cost of holding inventory
Definition

interest forgone on an alternative investment. 

The contribution to operating income that is forgone by not using a limited resource in its next best alternative use. 

Term
Purchase order lead time
Definition
the difference between the time an order is placed and delivered.
Term
Shrinkage cost.
Definition
cost that result from the theft of inventory.
Term
Life cycle budgeting.
Definition
helps companies estimate revenue and expenses over a multiyear horizons.
Term
Stockout costs.
Definition
Cost that result when a company runs out of a particular item for which there is a customer demand.
Term
sunk cost
Definition

cost that already accured and can not be changed. 

Irrelevant in the future. 

Term
Qualitative factors
Definition
are outcomes that are difficult to measure accuratley in numerical terms such as employee or customer satisfaction.
Term
One time special order
Definition

would be accepted if it generates additional operating income. 

 

Term
Target costing
Definition
indentified an estimated price customers are willing to pay and then compute the cost to be achieved to earn the desired profit.
Term
Peak load pricing.
Definition
the practice of charging a higher price for the same product or service when demand approuches the physical limit of the capactiy to produce the product or service.
Term
Value added cost.
Definition
is a cost that if eliminated would reduce the actual or perceived value or usefulness customer experience from using the product or service.
Term

Test II 

The journal entry record the materials placed into production would include a 

Definition
credit to direct materials for 82000
Term
The ending balance of direct materials inventory is
Definition

174,000-82,000=92,000

92,000

Term

 

Test II 

The ending balance of work in progress inventory. 

Definition
146,500
Term
The ending balance of finish good inventory is
Definition

94,000. 

292,000+58000=350,000

350,000-256000=94000

Cost of goods sold 256000

Term

Test II 

What is the budgeted sales for 2016

Definition
246,330
Term

Test II 

The flexible budget variance for variable cost is 

Definition
 19,200 unfavorable. 
Term

Financial acct provides a historical perspective. 

Where as management acct emphasizes

Definition
The future.
Term
Five steps decision making.
Definition

1. Id the problem 
2. Obtain info

3. Make predictions of the future.

4. Make decisions by chossing among alt.

5. Implement decision making.  

Term
Actual cost is
Definition
the cost incurred.
Term
Compaing budgeted cost to actual cost helps managers to improve
Definition
control
Term
A cost system determines the cost of a cost object by
Definition
accumulating and then assigning cost.
Term
Budgeted cost are
Definition
planned or forcasted cost.
Term
cost tracing is
Definition
the assignment of direct costs to the chose cost object
Term
An example of indirect cost for the soccer equipment line
Definition
salary paid to plant supervisor.
Term
Indirect cost are always
Definition
cannot be traced to a particular cost object in an economically feasible way.
Term
The most likly cost driver of distribution cost is the
Definition
number of miles driven.
Term
A breakeven point is the activity level where
Definition
revenues equal the sum of variable and fixed cost.
Term
Goodness of fit measures how well the predicted values in a cost estimating equation
Definition
Match the actual cost observations.
Term
The smaller the residual term the
Definition
bettwe is the fit between actual cost observation and estimated cost.
Term
THe ideal database for estimating cost function contains
Definition
numerous cost driver observations.
Term
The primary user of management accounting information is a
Definition
controller.
Term
Prime cost include
Definition
direct materials and direct manufactoing labor cost.
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