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20 Cards in this Set
- Front
- Back
An accounting system that accumulates costs by job. used by companies that manufacture unique products or provide specialized services
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Job Order Costing System
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The production of a unique product or specialized service. May be one unit or a batch of units.
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Job
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An accounting system that accumulates costs by process. used by companies that manufacture identical units through a series of uniform production steps or processes
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Process costing system
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a document that shows the direct materials, direct labor, and manufacturing overhead costs for an individual
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Job Cost Record
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Request for the transfer of raw materials to the production floor
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Materials requisition
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a record used to assign direct labor cost to specific jobs
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Labor time record
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Estimated overhead cost per unit of the allocation base, calculated at the beginning of the accounting period. total estimated overhead costs
-------------------------------------------- Total estimated quantity of the overhead allocation base |
Predetermined overhead allocation rate
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A denominator that links indirect costs to cost objects. ideally, the allocation base is the primary cost driver of the indirect costs
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Allocation Base
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The primary factor that causes a cost to increase or decrease
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Cost Driver
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Occurs when the actual manufacturing overhead costs are more than allocated manufacturing overhead costs
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Under-allocated overhead
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occurs when the actual manufacturing overhead costs are less than allocated manufacturing overhead costs
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Overallocated overhead
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An accounting system that accumulates costs by job. used by companies that manufacture unique products or provide specialized services
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Job Order Costing System
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One of a series of steps in manufacturing production, usually associated with making large quantities of similar items
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Process
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An accounting system that accumulates costs by process. used by companies that manufacture identical units through a series of uniform production steps or processes
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Process costing System
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Used to measure the amount of materials added to or work done on partially completed units and expressed in terms of full completed units
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Equivalent units of productions (EUP)
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the cost to convert raw materials into finished goods.
Direct labor +Manufacturing overhead |
Conversion Costs
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A report prepared by a processing department for equivalent units of production, production costs and the assignment of those costs to the completed and in process units
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Production cost report
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Costs that were incurred in a previous process and brought into a later process as part of the product's cost
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Transferred in costs
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Determines the average cost of equivalent units of production by combining beginning inventory costs with current period costs
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weighted-Average method
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Determines the cost of equivalent units of production by accounting for beginning inventory costs separately from current period cost it assumes the first units started in the production process are the first units completed and sold
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First in- first out method
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