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