Acct 3337- Ch. 2

Front 1

accounting information system

Back 1

consists of interrelated manual and computer parts, using processes such as collecting, recording, summarizing, analyzing, and managing data to provide information to users

Front 2

1. objectives
2. interrelated parts
3. processes
4. outputs

Back 2

4 things an accounting information system consists of

Front 3

cost management information system

Back 3

primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives

Front 4

1. costing out services, products, and other objects of interest to management
2. planning and control
3. decision making

Back 4

3 broad objectives of a cost management informations system

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1. financial accounting info system
2. cost management info system

Back 5

2 subsets of accounting information system

Front 6

1. cost accounting info system
2. operational control system

Back 6

2 subsets of cost management information systems

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cost

Back 7

the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future benefit

Front 8

expenses

Back 8

expired costs

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loss

Back 9

a cost that expires without producing any revenue benefit

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assets

Back 10

unexpired costs

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cost object

Back 11

any item for which costs are measure and assigned

Front 12

activity

Back 12

a basic unit of work performed within an organization

Front 13

traceability

Back 13

the ability to assign a cost to a cost object in an economically feasible way by means of a causal relationship

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direct costs

Back 14

costs that can be easily and accurately traced to a cost object

Front 15

indirect costs

Back 15

costs that can't be traced easily and accurately to a cost object

Front 16

1. direct tracing
2. driver tracing

Back 16

2 methods of tracing

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direct tracing

Back 17

the process of identifying and assigning costs to a cost object that are specifically or physically associated with the cost object

Front 18

driver tracing

Back 18

the use of drivers to assign costs to cost objects

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drivers

Back 19

factors that cause resource usage, activity usage, costs, and revenues

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allocation

Back 20

assignment of indirect costs to cost objects

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production costs

Back 21

costs associated with the manufacture of goods or the provision of services (direct materials, direct labor, overhead)

Front 22

nonproduction costs

Back 22

costs associated with the functions of selling and administration

Front 23

1. marketing (selling) costs
2. administrative costs

Back 23

2 categories of nonproduction costs

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period costs

Back 24

expensed in the period in which they are incurred

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marketing (selling) costs

Back 25

costs necessary to market and distribute a product or service

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administrative costs

Back 26

all costs associated with the general administration of the organization that can't be reasonably assigned to either marketing or production

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prime

Back 27

the sum of direct materials costs and direct labor cost

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conversion cost

Back 28

the sum of direct labor cost and overhead cost

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absorption costing

Back 29

a costing method that assigns all manufacturing costs to each unit of product

Front 30

1. cost of goods sold
2. operating expenses

Back 30

two major functional categories of expense in absorption costing

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cost of goods sold

Back 31

the cost of direct materials, direct labor, and overhead attached to the units sold

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cost of goods manufactured

Back 32

represents the total manufacturing cost of goods completed during the current period

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work in process

Back 33

consists of all partially completed units found in production at a given point in time

Front 34

functional-based cost system

Back 34

a costing system that uses only unit-based activity drivers to assign costs to cost objects

Front 35

functional-based cost control

Back 35

assigns costs to organizational units and then holds the organization unit manager responsible for controlling the assigned costs

Front 36

activity-based cost accounting

Back 36

a cost accounting system that uses both unit- and non-unit-based activity drivers to assign costs to cost objects

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activity-based management

Back 37

focuses on the management of activities with the objective of improving the value received by the customer and the profit received by the company in providing this value

Front 38

1. value-chain
2. operating
3. manufacturing

Back 38

3 possible product cost definitions