Accounting Chapter 19 Vocab

Front 1

The destination of an assigned, or allocated cost.

Back 1

Cost object

Front 2

The cost of all units completed and moved to finished goods storage during an accounting period.

Back 2

Cost of goods manufactured

Front 3

The collection of overhead costs assigned to a cost object.

Back 3

Cost pool

Front 4

Costs that can be conveniently and economically traced to a cost object.

Back 4

Direct costs

Front 5

The costs of the labor needed to make a product or perform a service that can be conveniently economically traced to specific units of the product or service.

Back 5

Direct labor costs

Front 6

A method of assigning overhead costs that categorized all indirect costs by activity, traces the indirect costs to those activities, and assigns activity costs to products using a cost drier related to the cause of the cost.

Back 6

Activity-based costing (ABC)

Front 7

A method of cost measurement that uses the actual costs of direct materials, direct labor, and overhead to calculate a product or service.

Back 7

Actual costing

Front 8

The costs of converting direct materials into a finished product; the sum of direct labor costs and overhead costs.

Back 8

Conversion costs

Front 9

The process of assigning a collection of indirect costs to a specific cost object using an allocation base known as a cost driver.

Back 9

Cost allocation

Front 10

An activity base that causes a cost pool to increase in amount as the cost driver increases in volume.

Back 10

Cost driver

Front 11

The costs of the materials used in making a product that can be conveniently and economically traced to specific units of the product.

Back 11

Direct materials costs

Front 12

An inventory account that shows the costs assigned to all completed products that have not been sold.

Back 12

Finished Goods Inventory account

Front 13

A cost that remains constant within a defined range of activity or time period.

Back 13

Fixed cost

Front 14

Costs that cannot be conveniently or economically traced to a cost object

Back 14

Indirect costs

Front 15

The costs of labor for production-related activities that cannot be conveniently or economically traced to a unit of the product of service.

Back 15

Indirect labor costs

Front 16

The costs of materials that cannot be conveniently and economically traced to a unity of the product or service.

Back 16

Indirect materials costs

Front 17

The flow of manufacturing costs (direct materials, direct labor, and overhead) through the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory accounts into the Cost of Goods Sold account.

Back 17

Manufacturing cost flow

Front 18

An inventory account that shows the balance of the cost of unused materials

Back 18

Materials Inventory account

Front 19

The cost of an activity that adds cost to a product or service but does not increase its market value

Back 19

Nonvalue-adding cost

Front 20

A method of cost measurement that combines the actual direct costs of materials and labor with estimated overhead costs to determine a product or service unit cost

Back 20

Normal costing

Front 21

The amount by which overhead costs applied using the predetermined overhead rate exceed the actual overhead costs for the accounting period.

Back 21

Overapplied Overhead costs

Front 22

Production-related costs that cannot be practically or conveniently traced to an end product or service. Also called factor overhead, factory burden, manufacturing overhead, service overhead, or indirect manufacturing costs.

Back 22

Overhead costs

Front 23

The costs of resources used during an accounting period that are not assigned to products or services. Also called noninventoriable costs or selling, administrative, and general expenses.

Back 23

Period costs

Front 24

The rate calculated before an accounting period begins by dividing the cost pool of total estimated overhead costs by the total estimated cost driver for that pool.

Back 24

Predetermined overhead rate

Front 25

The primary costs of production; the sum of direct materials costs and direct labor costs.

Back 25

Prime costs

Front 26

The costs assigned to inventory, which include the costs of direct materials, direct labor, and overhead. Also called inventoriable costs.

Back 26

Product costs

Front 27

The cost of manufacturing a single unit of a product, computed either by dividing the total cost of direct materials, direct labor, and overhead by the total number of units produced, or by determining the cost per unity for each element of the product cost and summing those per-unit costs.

Back 27

Product unit cost

Front 28

A method of cost measurement that uses the estimated costs of direct materials, direct labor, and overhead to calculate a product unit cost.

Back 28

Standard costing

Front 29

A formal statement summarizing the flow of all manufacturing costs incurred during an accounting period.

Back 29

Statement of costs of goods manufactured

Front 30

The total costs of direct materials, direct labor, and overhead incurred and transferred to Work in Progress Inventory during an accounting period. Also called current manufacturing costs.

Back 30

Total manufacturing costs

Front 31

The amount by which actual overhead costs exceed the overhead costs applied using the predetermined overhead rate for the accounting period.

Back 31

Underapplied overhead costs

Front 32

The cost of an activity that increases the market value of a product or service.

Back 32

Value-adding cost

Front 33

A cost that changes in direct proportion to a change in productive output (or some other measure of volume).

Back 33

Variable cost

Front 34

An inventory account used to record the manufacturing costs incurred and assigned to partially completed units of product.

Back 34

Work in Process Inventory account