Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
53 Cards in this Set
- Front
- Back
Administrative Costs
|
all executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing, marketing, or selling
|
|
common cost
|
a cost that is common to a number of objects but cannot be traced to them individually
|
|
conversion cost
|
direct labor + manufacturing overhead
|
|
cost behavior
|
the way in which a cost reacts or responds to changes in levels of business activity
|
|
cost object
|
anything for which cost data are desired
i.e. products, productlines, customers, jobs, ... |
|
cost of goods manufactured
|
the manufacturing costs associated with the goods that were finished that period
|
|
differential cost
|
a difference in cost between any two alternatives
|
|
differential revenue
|
the difference in revenue between two alternatives
|
|
Direct cost
|
a cost that can be easily and conveniently traced to the particular cost object under construction
|
|
direct labor
|
those factory labor costs that can be easily traced to individual units of product
|
|
direct materials
|
those materials that become an integral part of a finished product and can be conveniently traced into it
|
|
fixed cost
|
a cost that remains constant, in total, regardless of the changes in level of activity within the relevant range
|
|
Incremental cost
|
an increase in cost between two alternatives
|
|
indirect cost
|
a cost that cannot be easily and conveniently traced to the particular cost object under construction
|
|
indirect labor
|
the labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be easily and conveniently traced to a direct product
|
|
indirect materials
|
small items such as glue and nails - are traceable only at a great cost or inconvenience
|
|
Manufacturing overhead
|
all costs associated with manufacturing except direct materials and direct labor
|
|
marketing or selling costs
|
all costs necessary to secure customer orders and get the finished product or service into the hands of the customer
|
|
Period costs
|
costs that are taken directly to the income statement as expenses in which period they occur
|
|
prime cost
|
direct materials cost + direct labor cost
|
|
Product costs
|
all costs involved in the purchase or manufacure of goods
== direct labor, direct materials, & manufacturing overhead |
|
Raw materials
|
any materials that go into the final product
|
|
Relevant range
|
the range of activity within which assumptions about variable and fixed costs are accurate
|
|
schedule of costs of goods manufactured
|
schedule showing the direct materials, direct labor, and manufacturing overhead costs associated with WIP in a certain period
|
|
sunk cost
|
any cost that has already been incurred and that cannot be changed by any decision made now or in the future
|
|
variable cost
|
a cost that varies, in total, in direct proportion to changes in the level of activity. Variable costs are constant per unit.
|
|
Absorption costing
|
a costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a finished unit of product
|
|
allocation base
|
a measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects
|
|
bill of materials
|
a document that shows the type and quantity of each major item of materials required to make a product
|
|
cost driver
|
a factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs
|
|
job cost sheet
|
a form prepared for each job that records the materials, labor, and overhead costs charged to the job
|
|
job-order costing system
|
a costing systems used in situations where many different products, jobs, or services are produced each period
|
|
materials requisition form
|
a detailed source document that specifies the type and quantity of materials that are to be drawn from that storeroom and identifies the job to which the cost of materials shall be charged
|
|
normal cost system
|
a costing system in which overhead costs are applied to jobs by muliplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job
|
|
overapplied overhead
|
a credit balance in the manufacturing overhead account that arises when the amount of overhead cost applied to WIP is greater than the amount of overhead cost actually incurred
|
|
overhead application
|
the process of charging manufacturing overhead cost to job cost sheets and to the WIP account
|
|
Process costing system
|
a costing system used in those manufacturing situations where a single, homogeneous product is produced for long periods of time
|
|
time ticket
|
a detailed source document that is used to record an employee's hour-by-hour activities during the day
|
|
depreciation
|
The allocation of cost for plant and equipment
|
|
Depletion
|
The allocation of cost for natural resources
|
|
Amortization
|
The allocation of costs for intangible assets
|
|
Average Accumulated Expenditures
|
Approximation of average amount of debt if all construction funds were borrowed
|
|
Revenue - donation of asset
|
Account credited when assets are donated to a corporation
|
|
Nonmonetary exchange
|
Basic principle is to value assets acquired using fair value of assets given
|
|
natural resources
|
wasting assets
|
|
intangible assets
|
operational assets that represent rights
|
|
copyright
|
exclusive right to benefit from creative work
|
|
trademark
|
exclusive right to display a word, symbol, or an emblem
|
|
goodwill
|
purchase price less fair market value of net identifiable assets
|
|
Segregation of Duties (3)
|
1. Human resources should be seperated from time keeping
2. Employees should not have access to payroll files 3. The payroll department should not create the checks |
|
Employee time issues (4)
|
1. Electronic payroll devices should be used to track time
2. Shop supervisors should approve job time tickets 3. Reconcilliations should be conducted between time tickets applied to jobs and the clock 4. All employees must be trained on the correct way to handle the recording of time to specific jobs |
|
Conversion Cycle Inventory Issues (6)
|
1. Inventory Requisistions
2. Trained to move raw materials into WIP 3. Shop should have written inventory procedures 4. necessary signatures before moved from WIP to finished goods 5. High $ placed in steel cages 6. Physical count should be done once a year |
|
Other control issues (3)
|
1. Control fictitious employees -- Review new employees
2. Payroll should use -- Reasonableness checks 3. Monitor timekeeping procedures |