Shared Flashcard Set

Details

Exam 4
Chpt 18-20
35
Accounting
Undergraduate 3
11/15/2012

Additional Accounting Flashcards

 


 

Cards

Term
Actual Manufacturing Overhead
Definition
actual amount of indirect manufacturing costs incurred during the period
Term
Allocation Base
Definition
measurable item used to apply indirect overhead costs to products or services
Term
Applied manufacturing overhead
Definition
refers to manufacturing overhead expenses applied to units of a product during a specific period
Term
cost of goods completed
Definition
total amount of cost assigned to goods that were manufactured or completed during an accounting period
Term
cost of goods sold
Definition
expense account including the total cost of jobs or units sold during the period
Term
direct labor time ticket
Definition
source document used to keep track of direct labor costs in a job order cost system
Term
indirect materials
Definition
costs that cannot be traced to a specific cost object or are not worth the effort to trace
Term
activity cost driver
Definition
underlying measure of activity used in activity based costing to assign the indirect cost to products and services
Term
activity-based costing
Definition
product costing method used by companies that have diverse products to which indirect costs are assigned based on the underlying activities performed
Term
batch-level activities
Definition
activities performed for a group of units or customers all at once
Term
cost driver
Definition
measure used to allocate or assign indirect costs to products
Term
customer-level activities
Definition
activities performed for a specific customer
Term
equivalent unit
Definition
measure of the amount of work that occurred during the period
Term
job cost sheet
Definition
document used to record all of the costs of producing a particular job or servicing a specific customer
Term
job order costing
Definition
costing system used by companies that make unique products or provide specialty services
Term
manufacturing overhead account
Definition
all costs other than direct material and direct labor that must be incurred to manufacture a physical product
Term
materials requisition form
Definition
document used to authorize the issuance of materials into production; details the cost and quantities of all materials needed to complete specific jobs
Term
overapplied overhead
Definition
difference between actual and applied overhead when the overhead applied to Work in Process is higher than the actual overhead costs incurred during the period
Term
predetermined overhead rate
Definition
rate stimated before the accounting period begins and used throughout the period to assign overhead costs to products based on actual values of an allocation base
Term
process costing
Definition
costing system used by companies that make very homogenous products or services
Term
under-applied overhead
Definition
difference in actual and applied overhead that occurs when the overhead applied to Work In Process Inventory is less than the actual overhead cost incurred during the period
Term
facility-level activities
Definition
activities performed for the overall company
Term
non-volume allocation measures
Definition
Term
product-level activities
Definition
activities performed to support an overall product line
Term
production report
Definition
essentially a summary of what occurred in the production process during the accounting period
Term
unit-level activities
Definition
activities performed for each unit or customer (one at a time)
Term
volume-based allocation measures
Definition
allocation bases traditionally used to assign indirect costs that are directly related to number of units produced
Term
prime costs
Definition
sum of direct materials and direct labor; represents the costs that can be directly traced to the end product
Term
conversion costs
Definition
sum of direct labor and manufacturing overhead; total cost incurred to convert direct materials into a finished product
Term
transferred-out costs
Definition
Term
equivalent unit costs
Definition
measure of the amount of work that occurred during the period
Term
what type of business would use job order costing
Definition
used in companies that offer customized products or services, such as custom-built homes or custom-built ships
Term
what type of business would use process costing
Definition
used in companies that offer homogeneous products and services such as cans of soda
Term
what types of information are posted on a job cost sheet
Definition
Direct materials, Shipping and handling, Sales taxes, Supplies, Direct labor, Payroll taxes, Employee benefits, Outsourced costs, Allocated overhead costs
Term
what form lists the quantity and cost of direct materials used on a specific job
Definition
materials requisition form
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