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33 Cards in this Set
- Front
- Back
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Costs that can be easily and accurately traces to the cost object |
Direct Costs |
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The labor that can be directly traced to the goods or services being produced |
Direct Labor |
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Materials that can be easily and accurately traced to the goods or services being produced |
Direct Materials |
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Costs that are used up in the production of revenue |
Expenses |
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Costs that, in total, are constant within the relevant range as the level of output increases or decreases. Cost per unit changes. |
Fixed Costs |
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All product costs other than direct materials and direct labor. Examples include depreciation on plant buildings and equipment, janitorial and maintenance labor, plant supervision, materials handling, power for plant utilities and plant |
Manufacturing Overhead |
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Costs that cannot be easily and accurately traced to the costs object. |
Indirect costs |
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Costs that are not product costs and typically are expensed in the period in which they are |
Period Costs |
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Costs necessary to market, distribute, and service a product or service. |
Selling Costs |
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Costs that increase in total as output increases and decrease in total as output decreases and remain constant per unit |
Variable Costs |
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Work in Process (WIP) |
Product costs of partially completed goods that are still in production at the end of the time |
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Costs associated with research, development, and general administration of the organization that cannot reasonably be assigned to either selling or production. |
Administrative Costs |
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A casual factor that measures the output of the activity that leads or causes costs to change |
Cost Driver |
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A variable whose value depends on the value of another variable |
Dependent Variable |
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A Method of seperating mixed costs into fixed and variable components by just the high and low data points |
High Low Method |
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A variable that measures output and explaines changes in the cost or other dependent variable |
Independent Variable |
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Corresponds to fixed costs and is the point at which the cost line intercepts the cost (vertical) |
Intercept |
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Costs that have both a fixed and a variable |
Mixed Costs |
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The range of output over which the assumed cost relationship is valid for the normal operations of a firm |
Relevant Range |
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Corresponds to the variable rate (variable cost per unit of output). |
Slope |
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Costs that in total vary in direct proportions to changes in output within the relevant range. Stay constant per unit. |
Variable Costs |
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DM+DL+OH |
Total Product Cost |
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Total product cost/# of units |
Per-Unit product costs |
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DM+DL |
Prime Costs |
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DL+OH |
Conversion Costs |
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Beg. Inventory + Purchases - DM |
Ending Inventory |
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Beg. Inventory + Purchases - Ending Inventory |
Materials used in production |
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Sales Revenue - Cost of goods sold |
Gross Margin |
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Gross margin - selling expense - administrative expense |
operating Income |
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DM used + DL + OH |
Total Manufacturing Cost |
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Beg. WIP + Total manufacturing cost - Ending WIP |
Cost of goods manufactured |
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Beg. Finished goods Inv. + Costs of goods manufactured - Ending finished goods - Inv. |
Cost of goods sold |
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DM+DL+OH |
Product (Manufacturing Costs) |
