Term
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Definition
Beg. Mat + Purch =Available -End. Mat =Mat. Used |
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Term
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Definition
DM + DL + OHD =Total Manufacturing Costs |
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Term
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Definition
Beg. WIP + TMC =Available - End WIP = Cost of Manufactured Goods |
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Term
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Definition
Finished Goods + CGM = Available Goods for Sale -Ending FG =Cost of Goods Sold |
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Term
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Definition
Sales - CGS =Gross Profit -Operating Expenses =Operating Income |
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Term
| Conditions for Overapplied Overhead |
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Definition
Acutal Labor Hours > expected Actual Costs < expected |
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Term
| Conditions for Underapplied Overhead |
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Definition
Actual labor hours < expected Actual costs > expected |
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Term
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Definition
Beg. Inv. + Started =Units to Account for M CC
Completed 100% 100%
+ End. Inv. %M %CC
=Units Accounted for =eq. units =eq. units cost/units cost/units total cost /unit
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Term
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Definition
Beg. Inv +Started =United to Account for M CC
To Complete Beg. (1-%M) (1-%CC) +Started and Completed 100% 100% +End Inv. %M %CC
=Units Accounted for eq. units eq. units cost/unit cost/unit total cost /unit
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Term
| Traditional Based Costing System |
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Definition
Estimated OHD /Direct Labor Costs = Rate (Rate x DLHa) + (Rate x DLHb) = estimated OHD (or mutliply the rate by w/e the problem specifies) |
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Term
| Activity-Based Costing System |
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Definition
Find individual rates (ex. Machine OHD / Total machine hours) Multiply individual rates by individual hours and sum. |
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Term
| Journal entry to correct overapplied |
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Definition
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Term
| Journal entry to correct underapplied |
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Definition
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Term
| Journal entries for when purchasing materials |
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Definition
Material Inv. Accounts Payable |
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Term
| Journal entry for when materials are used |
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Definition
WIP Inv./FOHD Materials Inv.
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Term
| Journal entry for when labor is used |
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Definition
WIP Inv/FOHD Payroll Payable
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Term
| Journal entry for when applying OHD |
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Definition
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Term
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Definition
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Term
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Definition
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Term
| Journal entry for selling price |
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Definition
Accounts Receivable Sales
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Term
| Responsibility Accounting |
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Definition
Sales - Variable costs =Contribution margin -controllable fixed costs =controllable margin -noncontrollable fixed costs* =profit * *only if controllable margin is positive |
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Term
| Static vs. Flexible Budget |
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Definition
static has one level of activity; flexible has more than one level of activity |
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Term
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Definition
Controllable margin / Average operating assets = ROI
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Term
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Definition
Controllable margin -(minimum rate of return x avg. operating expenses)
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Term
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Definition
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Term
| Materials Quantity Variance |
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Definition
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Term
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Definition
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Term
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Definition
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Term
| Which incurs cost and which generates revenue: investment, cost, profit |
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Definition
incurs cost only: cost profit/investment: both |
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