Accounting 200 Chapter 10 Exam 1

Front 1

Product Costs

Back 1

The three components of manufacturing cost; direct materials, direct labor, and factory overhead

Front 2

Period Costs

Back 2

Those costs that are used up in generationg revenue during the current period and that are not involved in the manufacturing proccess.

Front 3

Job Order Cost System

Back 3

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.

Front 4

Activity-Based Costing Method

Back 4

An accounting framework based on determining the cost of activities and allocating these costs to products using activity rates.

Front 5

Factory Overhead Cost

Back 5

All of the costs of operating the factory except for direct materials and direct labor

Front 6

Cost of Goods Sold

Back 6

The cost of the manufactured product sold.

Front 7

Cost allocation

Back 7

The process of assigning indirect costs to a cost object, such as a job.

Front 8

Direct Labor Cost

Back 8

Wages of factory workers who are directly involved with converting materials into a finished product.

Front 9

Direct Materials Cost

Back 9

The cost of materials that are an integral part of the finished product.

Front 10

Overpaid Factory Overhead

Back 10

The amount of factory overhead applied in excess of the actual factory overhead costs incurred for produciton during a period.

Front 11

Underpaid Factory Overhead

Back 11

The actual factory overhead costs incurred in excess of the amount of factory overhead applied for productino during a period.

Front 12

Materials Inventory

Back 12

The cost of materials that have not yet entered into the manufacturing process.

Front 13

Activity Base

Back 13

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.

Front 14

Predetermined Factory Overhead

Back 14

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.

Front 15

Finished Goods Inventory

Back 15

The cost of finished products on hand that have not been sold.

Front 16

Activity Cost Pools

Back 16

Cost accumulations that are associated with a given activity, such as machines usage, inspections, moving, and production setup.

Front 17

Conversion Costs

Back 17

The combination of direct labor and factory overhead costs.

Front 18

Cost

Back 18

Payment of cash (or a comitment to pay cash in the future) for the purpose of generating revenues.

Front 19

Cost Allocatino

Back 19

The process of assigning indirect costs to a cost object, such as a job

Front 20

Finished Goods Ledger

Back 20

The subsidiary ledger that contains the individual accounts for each kind of commodity or product produced.

Front 21

Job Cost Sheet

Back 21

An account in the work in process subsidiary ledger in which the costs charged to a particular job order are recorded.

Front 22

Lead Time

Back 22

The elapsed time between starting a unit of product into the beginning of a process and its completetion.

Front 23

Materials Inventory

Back 23

The cost of materials that have not yet entered into the manufacturing process.

Front 24

Nonvalue-added Lead Time

Back 24

The time that units wait in inventories, move unneccessarily, and wait during machine breakdowns.

Front 25

Process Cost System

Back 25

A type of cost accounting system in which costs are accumulated by department or process within a factory.

Front 26

Pull Manufacturing

Back 26

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.

Front 27

Push Manufacturing

Back 27

Materials are released into production and work in process is released into finished goods in anticipation of future sales.

Front 28

Supplier Partnering

Back 28

A just-in-time method that views suppliers as a valuable contributor to the overall success of the business.

Front 29

Value-added- Lead Time

Back 29

The time required to manufacture a unit of product or other output.

Front 30

Work in Progress Inventory

Back 30

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.