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11 Cards in this Set
- Front
- Back
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job-order costing system
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costing system used when a firm manufactures goods to a customer's unique requirements
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process costing system
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costing system used when a firm manufactures large quantities of a homogeneous product. costs are accumulated by process (dept.) and unit costs are derived by dividing total costs by total units produced
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cost accumulation
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refers to the recognition and recording of costs
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cost measurement
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refers to classifying the costs and determining the dollar amounts for direct materials, direct labor, and overhead
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1. actual costing
2. normal costing |
2 cost measurement methods
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cost assignment
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occurs after costs have been accumulated and measured.
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unit cost
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total product costs association with the units / number of units produced
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1. valuing inventory
2. determining income 3. decision making |
3 ways unit costs are used in manufacturing firms
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1. determining profitability
2. determining feasibility of new services |
2 ways unit costs are used in nonmanufacturing firms
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job-cost sheet
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the primary document used in job-order costing systems
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materials requisition form
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used to request the release of materials from stored inventory into production
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