Term
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Definition
| Direct material+Direct Labor+Manufacturing OH |
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Term
| Define manufacturing overhead |
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Definition
| Costs that do not have to do directly with the creation of a product |
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Term
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Definition
| Direct Labor and Direct Materials |
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Term
| What are conversion costs? |
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Definition
| Direct Labor + Manufacturing |
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Term
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Definition
| Administration and sales costs (HQ) costs |
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Term
| T/F variable cost per unit always stays the same? |
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Definition
| True-Variable costs per unit never change |
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Term
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Definition
| False-Fixed costs never change |
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Term
| What are the two forms of costing? |
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Definition
| Job Order Costing and Process Costing |
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Term
| What sort of jobs get done under process costing? |
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Definition
| High volume, identical homogenous product is being created. |
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Term
| What sort of jobs get done under job order costing? |
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Definition
| Highly specialized, high cost labor, unique products. |
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Term
| What is the paper that records process costing? |
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Definition
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Term
| What is the paper that records Job Order Costing? |
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Definition
| Job Cost sheet, or Job Cost Record |
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Term
A factory supervisor's salary is usually a :
1) period cost
2) direct labor cost
3) Variable cost
4) None of the above |
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Definition
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Term
What is the best costing method to use when many different small batches of product?
1) job-order costing
2) process costing
3) actual costing
4) none of the above |
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Definition
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Term
Which of the following documents does job order costing use to keep track of costs?
1) production report
2) voucher
3) job order cost record
4) Invoice |
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Definition
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Term
Which of the following companies would most likely use job order costing?
1) a large beer company
2) an oil refinery
3) a specialty wood product
4) none of the above |
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Definition
| 3) a specialty wood product |
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Term
What type of company uses a WORK IN PROGRESS account:
1) a nail salon
2) an airline
3) a paint manufacturer
4) Target department store |
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Definition
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Term
Factory overhead is best described as
1) a sunk cost
2) all product costs
3) indirect manufacturing costs
4) indirect period costs |
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Definition
| 3) indirect manufacturing costs |
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Term
The denominator in the normalized overhead application rate it:
1) estimated overhead costs
2) estimated activity level
3) actual overhead costs
4) actual activity level |
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Definition
| 2) estimated activity level |
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Term
In a capital intensive company which cost driver would probably be best when applying overhead:
1) machine hours
2) direct labor hours
3) direct labor costs
4) actual activity level |
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Definition
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Term
| In a T-chart, which side does the actual OH cost go on? |
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Definition
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Term
| In a T-chart, which side does the estimated OH cost go on? |
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Definition
| The right side/ credit side |
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Term
| What two number do you need to determine the OH rate? |
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Definition
| estimated OH $$$/ estimated labor hours |
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