Term
| Contribution Margin Ratio |
|
Definition
| Product's contribution margin divided by its sale price |
|
|
Term
|
Definition
| the cost of changing raw materials into finished or semi-finished products. Conversion costs include wages, other direct production costs, and the production overhead. |
|
|
Term
|
Definition
| Effects of employees who physically convert materials to finished product |
|
|
Term
|
Definition
| Raw material that physically becomes part of the product and is clearly identified with specific products or batches of product |
|
|
Term
|
Definition
| Expenditures for factory overhead that cannot be separately or readily traced to finished goods; also called overhead costs |
|
|
Term
|
Definition
| Account that controls the finished good files, which acts as a subsidiary ledger (of the Inventory account) in which the costs of finished goods that are ready for sales are recorded |
|
|
Term
|
Definition
| Cost that does not change with changes in the volume of activity |
|
|
Term
| Goods in process inventory |
|
Definition
| Account in which costs are accumulated for products that are in the process of being produced but are not yet complete; also called work in process inventory |
|
|
Term
|
Definition
| Costs incurred for the benefit of more than one cost object |
|
|
Term
|
Definition
| Potential benefit lost by choosing a specific action from two or more alternatives |
|
|
Term
|
Definition
| Expenditures identified more with a time period than with finished products costs; includes selling and general administrative expenses |
|
|
Term
|
Definition
| Expenditures directly identified with the production of finished goods; include direct materials costs and direct labor costs |
|
|
Term
|
Definition
| Costs that are capitalized as inventory because they produce benefits expected to have future value; include direct materials, direct labor, and overhead |
|
|
Term
|
Definition
| Goods a company acquires to use in making products |
|
|
Term
|
Definition
| Cost already incurred and cannot be avoided or changed |
|
|
Term
|
Definition
| Cost that changes in proportion to changes in the activity output volume |
|
|
Term
|
Definition
| Source document used to record the number of hours an employee works and to determine the total labor cost for each pay period |
|
|
Term
|
Definition
| Accounting system for manufacturing activities based on the perpetual inventory system |
|
|
Term
| General Accounting System |
|
Definition
| Accounting system for manufacturing activities based on the periodic inventory system |
|
|
Term
|
Definition
| Production of a customized product or service |
|
|
Term
|
Definition
| Separate record maintained for each job |
|
|
Term
|
Definition
| production of more than one unit of a customized product or service |
|
|
Term
| Job Order Cost Accounting System |
|
Definition
| Cost accounting system to determine the cost of producing each job or job lot |
|
|
Term
|
Definition
| Production of special-order products; also called customized production |
|
|
Term
|
Definition
| Perpetual record updated each time units are purchased or issued for production use |
|
|
Term
|
Definition
| Source document production managers use to request materials for production; used to assign materials costs to specific jobs or overhead |
|
|
Term
|
Definition
| Amount by which the overhead applied to production in a period using the predetermined overhead rate exceeds the actual overhead incurred in a period |
|
|
Term
| Predetermined Overhead Rate |
|
Definition
| Rate established prior to the beginning of a period that relates estimated overhead to another variable, such as estimated direct labor, and is used to assign overhead cost to production |
|
|
Term
|
Definition
| Source document used to report the time an employee spent working on a job or on overhead activities and then to determine the amount of direct labor to charge to the job or the amount of indirect labor to charge to overhead |
|
|
Term
|
Definition
| Amount by which overhead incurred in a period exceeds the overhead applied to that period's production using the predetermined overhead rate |
|
|
Term
| Equivalent Units of Production |
|
Definition
| Number of units that would be completed if all effort during a period had been applied to units that were started and finished |
|
|
Term
|
Definition
| Report of costs charged to a department, its equivalent units of production achieved, and the costs assigned to its output |
|
|
Term
| Process Cost Accounting System |
|
Definition
| System of assigning direct materials, direct labor, and overhead to specific processes; total costs associated with each process are then divided by the number of units passing through that process to determine the cost per equivalent unit |
|
|
Term
|
Definition
| Processing of products in a continous flow of steps |
|
|
