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Definition
| anything for which a cost measurement is desired. |
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| the collection of cost data in an organized way by means of an accounting system. |
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| The difference between actual costing and normal costing |
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| Normal costing uses actual quanities |
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| Is the usual starting point for budgeting |
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| the difference between actual result and budgeted performance. |
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| The japanses use the term kaizen when referring to. |
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| The flexible budger vairance for direct cost inputs can be further subdivided into a |
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| Price variance and efficency variance. |
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| Manufactoring overhead cost |
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| In a job costing system a manufactoring firm typically uses an indirect cost rate to estimate. |
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| The advantage of using normal costing instead of actual costing. |
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| Indirect cost are assigned to a job on a timley basis. |
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| It is a budget that is always available for a specified future time period. |
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| Is the initial plan of what a company intends to accomplish in the period and evolves from both operating and financing decisions. |
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| A price variance reflects the difference between. |
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| An actual input price and a budgeted price. |
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| A what if technique that examines how results will change if the orginally predicted data changes. |
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| The variances that should be investigated by management include |
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| both favorable and unfavorable variances considered significant in the amount for the companys variances. |
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| costing is used by a company to price homogenous products. |
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| buidling a bugetary slack includes |
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Definition
| making budgeted targets more easily achievable |
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| Management by exception is a practice whereby managers focus more closely on |
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Definition
| areas that are not operating as anticipated |
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| A budgeted indirect cost rate is calculated |
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Definition
| at the begining of the year. |
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Term
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| 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. |
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| decision with a time horizon less than one year. |
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| The major influences on pricing decisions |
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| are competition cost and customers. |
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| 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. |
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| cost that differ across the alternatives being considered. |
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| Opportunitie cost of holding inventory |
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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. |
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| the difference between the time an order is placed and delivered. |
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| cost that result from the theft of inventory. |
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| helps companies estimate revenue and expenses over a multiyear horizons. |
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| Cost that result when a company runs out of a particular item for which there is a customer demand. |
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cost that already accured and can not be changed.
Irrelevant in the future. |
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Term
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| are outcomes that are difficult to measure accuratley in numerical terms such as employee or customer satisfaction. |
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Definition
would be accepted if it generates additional operating income.
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| indentified an estimated price customers are willing to pay and then compute the cost to be achieved to earn the desired profit. |
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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. |
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Term
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| is a cost that if eliminated would reduce the actual or perceived value or usefulness customer experience from using the product or service. |
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Term
Test II
The journal entry record the materials placed into production would include a |
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Definition
| credit to direct materials for 82000 |
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| The ending balance of direct materials inventory is |
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Definition
174,000-82,000=92,000
92,000 |
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Test II
The ending balance of work in progress inventory. |
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Definition
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| The ending balance of finish good inventory is |
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Definition
94,000.
292,000+58000=350,000
350,000-256000=94000
Cost of goods sold 256000 |
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Test II
What is the budgeted sales for 2016 |
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Definition
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Test II
The flexible budget variance for variable cost is |
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Definition
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Term
Financial acct provides a historical perspective.
Where as management acct emphasizes |
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Definition
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Term
| Five steps decision making. |
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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. |
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Definition
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| Compaing budgeted cost to actual cost helps managers to improve |
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Definition
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| A cost system determines the cost of a cost object by |
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Definition
| accumulating and then assigning cost. |
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Term
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Definition
| planned or forcasted cost. |
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Definition
| the assignment of direct costs to the chose cost object |
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| An example of indirect cost for the soccer equipment line |
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| salary paid to plant supervisor. |
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Term
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| cannot be traced to a particular cost object in an economically feasible way. |
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| The most likly cost driver of distribution cost is the |
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Definition
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| A breakeven point is the activity level where |
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Definition
| revenues equal the sum of variable and fixed cost. |
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| Goodness of fit measures how well the predicted values in a cost estimating equation |
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| Match the actual cost observations. |
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| The smaller the residual term the |
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Definition
| bettwe is the fit between actual cost observation and estimated cost. |
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| THe ideal database for estimating cost function contains |
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Definition
| numerous cost driver observations. |
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| The primary user of management accounting information is a |
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Definition
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Term
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Definition
| direct materials and direct manufactoing labor cost. |
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