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30 Cards in this Set

  • Front
  • Back
Product Costs
The three components of manufacturing cost; direct materials, direct labor, and factory overhead
Period Costs
Those costs that are used up in generationg revenue during the current period and that are not involved in the manufacturing proccess.
Job Order Cost System
A type of cost accounting system that provides for a separate record of the cost of each particular quantity of product that passes through the factory.
Activity-Based Costing Method
An accounting framework based on determining the cost of activities and allocating these costs to products using activity rates.
Factory Overhead Cost
All of the costs of operating the factory except for direct materials and direct labor
Cost of Goods Sold
The cost of the manufactured product sold.
Cost allocation
The process of assigning indirect costs to a cost object, such as a job.
Direct Labor Cost
Wages of factory workers who are directly involved with converting materials into a finished product.
Direct Materials Cost
The cost of materials that are an integral part of the finished product.
Overpaid Factory Overhead
The amount of factory overhead applied in excess of the actual factory overhead costs incurred for produciton during a period.
Underpaid Factory Overhead
The actual factory overhead costs incurred in excess of the amount of factory overhead applied for productino during a period.
Materials Inventory
The cost of materials that have not yet entered into the manufacturing process.
Activity Base
A measure of activity that is related to changes in cost and is used in the denominator in calculating the predetermined factory overhead rate to assign factory overhead costs to cost objects.
Predetermined Factory Overhead
The rate used to apply factory overhead costs to the goods manufactured. The rate is determined from budgeted overhead cost and estimated activity usage data at the beginning of the fiscal period.
Finished Goods Inventory
The cost of finished products on hand that have not been sold.
Activity Cost Pools
Cost accumulations that are associated with a given activity, such as machines usage, inspections, moving, and production setup.
Conversion Costs
The combination of direct labor and factory overhead costs.
Payment of cash (or a comitment to pay cash in the future) for the purpose of generating revenues.
Cost Allocatino
The process of assigning indirect costs to a cost object, such as a job
Finished Goods Ledger
The subsidiary ledger that contains the individual accounts for each kind of commodity or product produced.
Job Cost Sheet
An account in the work in process subsidiary ledger in which the costs charged to a particular job order are recorded.
Lead Time
The elapsed time between starting a unit of product into the beginning of a process and its completetion.
Materials Inventory
The cost of materials that have not yet entered into the manufacturing process.
Nonvalue-added Lead Time
The time that units wait in inventories, move unneccessarily, and wait during machine breakdowns.
Process Cost System
A type of cost accounting system in which costs are accumulated by department or process within a factory.
Pull Manufacturing
A just-in-time method of manufacturing in which customer orderes trigger the release of finished goods, which trigger production, which triggers release of materials from suppliers.
Push Manufacturing
Materials are released into production and work in process is released into finished goods in anticipation of future sales.
Supplier Partnering
A just-in-time method that views suppliers as a valuable contributor to the overall success of the business.
Value-added- Lead Time
The time required to manufacture a unit of product or other output.
Work in Progress Inventory
The direct materials costs, the direct labor costs, and the factory overhead costs that have entered into the manufacturing process but are associated with products that have not been finished.