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19 Cards in this Set

  • Front
  • Back
Direct materials, direct labor, and overhead
Manufacturing cost
Selling cost and administrative expenses
Nonmanufacturing cost
Capitalized as part of finished goods inventory
Product cost
Expensed as incurred
Period cost
Future cost that will vary depending on action taken. All other cost are assumed to be constant and thus have no effect on decision
Relevant cost
Cost either already paid or irrevocably committed to incur
Sunk cost
Joint products acquire separate identities
Split-off point
Allocates joint production cost to each product based on its relative proportion of measure selected
Physical-quantity method
Assigns a proportionate amt of total cost to each product on quantitative basis
Market-based approach
Based on relative sales values of separate products at split-off
Sales-value at split-off method
Costs incurred prior to the split-off point to produce two or more goods manufactured simultaneously by a single process or series of processes
Joint cost
Consist of direct materials and direct labor
Prime cost
Selling price minus selling and disposal costs
Net realizable value
Includes fixed factory overhead in finished goods inventory
Absorption costing
Consists of direct labor and overhead
Conversion cost
Costing includes variable manufacturing costs only: direct materials, direct labor, and variable manufacturing overhead
Variable (direct) costing
Breakeven in Units
Fixed Cost/ Unit contribution Margin
Breakeven in Dollars
Fixed Cost/Contribution Margin ratio
Measures the amount by which sales may decline before losses occur
Margin of safety