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Details

ACG 2071 Test 1
N/A
82
Accounting
Undergraduate 2
02/08/2011

Additional Accounting Flashcards

 


 

Cards

Term
assign MOH costs based on the activites that drive costs
Definition
Activites Based Costing
Term
does not conform with GAAP because it may use some non manufacturing items in product cost allocation
Definition
Activity based costing
Term
predetermined rate * actual use of cost driver
Definition
Application of Overhead
Term
Total cost per activity divided by total expected activity allocation base than activity rates times amount of activity used than add all costs
Definition
Applying MOH costs for ABC Costing
Term
inspection of incoming materials, product testing
Definition
Appraisal Costs
Term
activities and costs incurred by every batch ex. machines set up to create a batch
Definition
Batch level activities
Term
Beginning FG + COGM = COG available - Ending FG equals
Definition
COGS
Term
in charge of accounting function, generlaly reports to CFO
Definition
Controller
Term
use of company resources
Definition
Cost
Term
Beginning WIP + DM + DL + MOH = COG available - Ending WIP equals
Definition
Cost of Good Manufactured
Term
grouping of similiar overhead costs
Definition
Costs Pools
Term
used when each product or job uses the departments to a different extent
Definition
Departmental MOH rates
Term
used when each department incurs different types and amount of MOH
Definition
Departmental Overhead Rates
Term
cost difference between two alternatives
Definition
Differential costs
Term
can be traced to the cost object
Definition
Direct Cost
Term
Direct or Indirect Cost or MOH for Civic:
Engine
Definition
Direct Cost
Term
Direct or Indirect Cost or MOH for Blockbuster:
Store utilities
Definition
Direct Cost
Term
Beginning DM + DM purchased = DM Available - Ending DM equals
Definition
Direct Materials Used
Term
AKA Cost driver amount
Definition
Estimated Total Allocation Base Amount
Term
"used up" cost
Definition
Expense
Term
Warranty costs, cost of recalls, liability claims
Definition
External Failure Costs
Term
activites and costs incurred no matter how many units, batches, or products are produced in the plant. ex. facility upkeep, insurance
Definition
Facility level activites
Term
T/F: External failure costs are limited to the costs of repairing defective products that re under warranty
Definition
False
Term
Accounting information used by external users - guided by rules, not flexible, historical, looks at the company as a whole
Definition
Financial Accounting
Term
Constant cost in total over a wide range of activity levels
Definition
Fixed cost
Term
Direct or Indirect Cost or MOH for Blockbuster:
CEOs Salary
Definition
Indirect
Term
relates to the cost object but can not be traced to it
Definition
Indirect Cost
Term
Direct or Indirect Cost or MOH for Civic:
Salary of Engineer who rearranges factory layout
Definition
Indirect Cost
Term
Direct or Indirect Cost or MOH for Civic:
Customer Service Hotline
Definition
Indirect Cost
Term
Direct or Indirect Cost or MOH for Civic:
Depreciation on the North American headquarters
Definition
Indirect Cost
Term
Rework, machine break downs, rejected products
Definition
Internal Failure Costs
Term
costing system assigned to small batches of one product
Definition
Job Costing
Term
cost assigned to each job or product
Definition
Job Costing
Term
less inventory costs more efficient reduce non value added costs - reliant on merchandise delivery
Definition
Lean Production (JIT)
Term
AKA Strategic Planning
Definition
Long-Term Planning
Term
Direct or Indirect Cost or MOH for Civic:
Plant Utilities
Definition
MOH
Term
Accouting information for internal users - no rules, flexible, forward-looking, segmented information
Definition
Managerial Accounting
Term
Information used for decision making within the organization.
Definition
Managerial Accounting
Term
produce their own inventory
Definition
Manufactoring Company
Term
All costs related to making a product
Definition
Manufacturing Costs
Term
typically have single category of inventory
Definition
Merchandising
Term
resell products they've previously purchased
Definition
Merchandising
Term
Sales - COGS = Gross Profit - Period Costs equals
Definition
Net Income
Term
costs not related to making a product, expensed as incurred
Definition
Non-Manufactoring Costs
Term
activites that could not be eliminated and still not effect the value of the good or service produced ex. storage of inventory
Definition
Non-value added activities
Term
the amount of overhead applied to the job costs is greater than actual overhead costs - reduce the cost of goods sold
Definition
Over applied overhead
Term
Product (DM/DL/MOH) or Period Cost for DiaryFarms, Inc.:
T.V. Ads for the products
Definition
Period
Term
Product (DM/DL/MOH) or Period Cost for DiaryFarms, Inc.:
Gas used to operate trucks delivering milk to grocery stores
Definition
Period
Term
Product (DM/DL/MOH) or Period Cost for DiaryFarms, Inc.:
CEO's annual bonus
Definition
Period
Term
AKA Non-Manufactoring Costs
Definition
Period Costs
Term
estimated total MOH divided by Estimated allocation base amount
Definition
Predetermind Overhead Rates
Term
training personel, redesigning product
Definition
Prevention Costs
Term
cost assigned to the process involved in making product
Definition
Process Costing
Term
costing system assigned to large quantities of one product
Definition
Process Costing
Term
Product (DM/DL/MOH) or Period Cost for DiaryFarms, Inc.:
Wages and Salaries paid to machine operators
Definition
Product - Direct Labor
Term
Product (DM/DL/MOH) or Period Cost for DiaryFarms, Inc.:
Plastic Gallan containers
Definition
Product - Direct Material
Term
Product (DM/DL/MOH) or Period Cost for DiaryFarms, Inc.:
Lubricants used in running the bottling machines
Definition
Product - MOH
Term
Product (DM/DL/MOH) or Period Cost for DiaryFarms, Inc.:
Depreciation on the trucks used to collect raw milk from local farms
Definition
Product - MOH
Term
AKA Manufacturing costs
Definition
Product Costs
Term
activites andc osts incurred for a particular product ex. research & development, design
Definition
Product Level activities
Term
competence, confidentiality, integrity, credibility
Definition
Professional Ethics
Term
Prevention appraisal internal failure external failure
Definition
Quality Costs
Term
Sell to consumers
Definition
Retailers
Term
enacted to restore trust in publicaly traded corporations after accounting scandals such as Enron.
Definition
Sarbanes-Oxley Act
Term
Better ovresight, management accountablitliy, and auditor independence regarding publicaly traded companies
Definition
Sarbanes-Oxley Act
Term
does not sell tangable products
Definition
Service Companies
Term
moving away from manufacturing to more service
Definition
Shifting Economy
Term
Cost irrelevant to business decisions
Definition
Sunk Cost
Term
already incurred costs
Definition
Sunk Cost
Term
Total fixed cost + (Variable cost per unit*number of units) =
Definition
Total cost
Term
T/F: Managerial accounting places less emphasis on precision and more emphasis on flexibility and relevance than financial accounting
Definition
True
Term
the amount of overhead applied too the job costs is less than actual overhead costs - incread cost of goods sold
Definition
Underapplied overhead costs
Term
activities and costs incurred for every unit - inspecting, packaging
Definition
Unit level activities
Term
activites that add value to a companies products or services
Definition
Value Chain
Term
R&D, Design, Production/Purchases, Marketing, Distribution, Customer Service are all part of the...
Definition
Value Chain
Term
Changes in total in direct proportion to changes in volume
Definition
Variable Costs
Term
Buy in bulk and sell to retailers
Definition
Wholesalers
Term
monitor, motivate and evaluate
Definition
control activites
Term
Overseeing day to day business operations
Definition
directing activites
Term
cost to produce one more unit
Definition
marginal costs
Term
review responsibilities of top managers such as CEO, COO, and CFO
Definition
organizational structure
Term
total product costs divided by units produced equals
Definition
product cost per unit
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