Term
| term: dynamic factors that have the ability to change total costs |
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Definition
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Term
| 3 things cost drivers may be based off |
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Definition
1. volume (output)
2. activity (value added)
3. number of operational characteristics |
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Term
| Term: dynamic factors that are helpful to the firm in managing the short term costs of the firm |
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Definition
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Term
| term: strategic decisions or plans made by the firm that have a long-term effect on the cost |
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Definition
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Term
| activity based cost drivers add value to ______ |
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Definition
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Term
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Definition
| COGM - cost of goods manufactured |
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Term
| term: resources or activities that serve as the basis for management decisions |
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Definition
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Term
| term: DM + DL makes up this vocab word |
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Definition
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Term
| term: DL + applied OH make up this vocab word |
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Definition
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Term
| Costs that are expensed in the period incurred |
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Definition
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Term
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Definition
| selling/admin expenses, interest expes |
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Term
| What are the objectives of cost accounting systems? |
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Definition
P - product costing
I - income determination
E - efficient measurements |
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Term
| what is defined as direct raw materials? |
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Definition
| materials used in production (freight in less discount) + normal scrap/spoilage |
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Term
| ______ costs change in total, but remain constant per unit |
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Definition
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Term
| _____ costs are constant in total, but vary per unit |
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Definition
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Term
| range for which the assumptions of the cost driver are valid |
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Definition
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Term
| Term: cost of a single process among several final products |
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Definition
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Term
| term: costs incurred on a product after the split off point |
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Definition
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Term
| term: accounts for certain costs at the end of the process in circumstances where there is little need for in-process inventory valuation |
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Definition
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Term
| term: ____ is used when there are relatively few units produced and when each unit is unique or easily identifiable |
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Definition
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Term
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Definition
| actual cost driver * overhead rate |
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Term
| actual overhead rate equals |
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Definition
| budgeted overhead costs / estimated cost driver |
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Term
| term: the amount of DM, DL or conversion costs necessary to complete one unit of production |
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Definition
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Term
| Which type of spoilage is included in inventory. which is not? |
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Definition
| included: normal spoilage ; not included: abnormal spoilage |
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Term
units completed and transferred out
less: WIP, ending * percent complete
= equivalent units of production |
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Definition
| Weighted Average Equivalent Units of Production |
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Term
WIP, beginning * % yet to complete
+united completed and transferred out
-units in beginning inventory
+ WIP, ending * percentage complete |
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Definition
| FIFO equivalent units of production |
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Term
| term: Activity based costing is also known as this |
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Definition
| transaction-based costing |
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