Acc 202 Exam 1

Front 1

Activity

Back 1

Any event, action, transaction, or work sequence that incurs costs when producing a product or performing a service.

Front 2

Activity cost pool

Back 2

The overhead cost after buted to a distinct type of activity or related activities.

Front 3

Activity based costing (ABC)

Back 3

A method of allocating overhead based on each product's use of activities in making the product.

Front 4

Activity based management

Back 4

Extends ABC from product costing to a comprehensive management tool that focuses on reducing costs and improving processes and decision making.

Front 5

Balanced Scoreboard

Back 5

A performance measurement approach that uses both financial and non financial measures, tied to a company's objectives, to evaluate a company's operations in an integrated fashion.

Front 6

Batch level activities

Back 6

Activities performed for each batch of products rather than for each unit.

Front 7

Board of directors

Back 7

The group of officials elected by the stockholders of a corporation to formulate operating policies and select officers who will manage the company.

Front 8

Chief executive officer (CEO)

Back 8

Corporate officer who has overall responsibility for managing the business and delegates responsibilities to other corporate officers.

Front 9

Chief financial officer

Back 9

Corporate officer who is responsible for all of the accounting and finance issues of the company.

Front 10

Controller

Back 10

Financial officer responsible for a company's accounting records, system of internal control, and preparation of financial statements, tax returns, in internal reports.

Front 11

Conversion Costs

Back 11

The sum of labor costs and overhead costs.

Front 12

Corporate social responsibility

Back 12

The efforts of a company to employ sustainable business practices with regards to its employees, society, and the environment.

Front 13

Cost accounting

Back 13

An area of accounting that involves measuring, recording, and reporting product costs.

Front 14

Cost accounting system

Back 14

Manufacturing cost accounts that are fully integrated into the general ledger of a company.

Front 15

Cost Driver

Back 15

Any factor or activity that has a direct cause effect relationship with the resources consumed. In ABC, cost drivers are used to assign activity cost pools to products or services.

Front 16

Cost of goods manufactured

Back 16

Total cost of work in process less the cost of ending work in process inventory.

Front 17

Cost reconciliation schedule

Back 17

A schedule that shows that the total costs accounted for it will the total cost to be accounted for.

Front 18

Direct labor

Back 18

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods.

Front 19

Direct materials

Back 19

Raw materials that can be physically and directly associated with manufacturing the finished product.

Front 20

Enterprise resource planning system

Back 20

Software that provides a comprehensive Commerce centralized, integrated source of information used to manage all major business processes.

Front 21

Equivalent units of production

Back 21

A measure of work done during the period, expressed in fully completed units.

Front 22

Facility level activities

Back 22

Activities required to support or sustain an entire production process

Front 23

Indirect labor

Back 23

Work a factory employs that has no physical association with the finished product or for which it is impractical to trace the costs to goods produced.

Front 24

Indirect materials

Back 24

Raw materials I do not physically become part of the finished product or for which it is impractical to trace to the finished product because their physical association with the finished product is too small.

Front 25

Job cost sheet

Back 25

A form used to record the costs chargeable to a specific job and to determine the total and the unit costs of the completed job.

Front 26

Job order cost system

Back 26

A cost accounting system in which costs are signed a to each job or batch.

Front 27

Just in time inventory

Back 27

Inventory system in which goods are manufactured or purchased just in time for sale.

Front 28

Just in time processing

Back 28

A processing system dedicated to having the right amount of materials, parts, or products arrive as they are needed, thereby reducing the amount of inventory.

Front 29

Line Positions

Back 29

Jobs that are directly involved in a company's primary revenue generating operating activities.

Front 30

Managerial accounting

Back 30

A field of accounting that provides economic and financial information for managers and other internal users.

Front 31

Manufacturing overhead

Back 31

Manufacturing costs that are indirectly associated with the manufacturer of the finished product.

Front 32

Materials requisition slip

Back 32

A document authorizing at the issuance of raw materials from the store room to production.

Front 33

No value added activity

Back 33

Activity that, if eliminated, would not reduce the perceived value of a company's product or service.

Front 34

Operations costing

Back 34

A combination of a process cost and a job order cost system in which products are manufactured primarily by standardized methods, with some customization.

Front 35

Over applied overhead

Back 35

A situation in which over had assigned to work in process is greater than the overhead incurred.

Front 36

Period Costs

Back 36

Costs that are matched with the revenue of a specific time period and charged to expense as Incurred.

Front 37

Physical units

Back 37

Actual units to be accounted for during a period, irrespective of any work performed.

Front 38

Pre determined overhead rate

Back 38

A rate based on the relationship between estimated annual overhead costs and expected annual operating activity, expressed in terms of a common activity base.

Front 39

Process cost system

Back 39

A cost accounting system used when a company manufactures a large volume of similar products.

Front 40

Product costs

Back 40

Costs that are a necessary and integral part of producing the finished product.

Front 41

Product level activities

Back 41

Activities performed in support of an entire product line but not always performed every time a new unit or batch of products is produced.

Front 42

Production cost report

Back 42

An internal report for management that shows both production quality and cost data for a production department.

Front 43

Sarbanes-Oxley Act

Back 43

Law passed by Congress intended to reduce unethical corporate behavior

Front 44

Staff positions

Back 44

Jobs that support the efforts of line employees.

Front 45

Theory of constraints

Back 45

A specific approach used to identify and manage constraints in order to achieve the company's goals.

Front 46

Time ticket

Back 46

A document that indicates that the employee karma the hours worked, the account and job to be charged, and the total labor cost.

Front 47

Total cost of work in process

Back 47

Cost of the beginning work in process plus total manufacturing cost for the current period.

Front 48

Total manufacturing costs

Back 48

The sum of direct materials, direct labor, and manufacturing overhead incurred in the current period.

Front 49

Total quality management

Back 49

Systems implemented to reduce defects in finished products with the goal of achieving 0 defects.

Front 50

Total units (costs) accounted for

Back 50

The some of the units (costs) transferred out during the period plus the units (costs) in process at the end of the period.

Front 51

Total units (costs) to be accounted for

Back 51

The some of the units (costs) started (or transferred) into production during the period plus the units (costs) in process at the beginning of the period.

Front 52

Treasurer

Back 52

Financial officer responsible for custody of a company's funds and for maintaining its cash position.

Front 53

Triple bottom line

Back 53

The evaluation of a company's social responsibility performance with regard to people, planet, and a profit.

Front 54

Under applied overhead

Back 54

A situation in which overhead assigned to work in process is less than the overhead incurred.

Front 55

Unit production costs

Back 55

Costs expressed in terms of equivalent units of production.

Front 56

Unit level activities

Back 56

Activities performed for each unit of production.

Front 57

Value chain

Back 57

All business processes associated with providing a product or performing a service.

Front 58

Value added activity

Back 58

An activity that increases the perceived value of a product or service to a customer.

Front 59

Weighted average Method

Back 59

Method of computing equivalent units of production which considers the degree of completion (weighing) of the units completed and transferred out and the ending work in process.