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24 Cards in this Set
- Front
- Back
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Actual cost system
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an approach that assigns actual costs of direct materials, direct labor, and overhead to products.
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Adjusted cost of goods sold
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the cost of goods sold after all adjustments for overhead variances are made.
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Applied overhead
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overhead assigned to production using predetermined rates.
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Causal factors
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activities or variables that invoke service costs. Generally, it is desirable to use causal factors as the basis for allocating service costs.
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Common costs
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he costs of resources used in the output of two or more services or products.
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Departmental overhead rate
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estimated overhead for a single department divided by the estimated activity level for that same department.
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Direct method
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a method that allocates service costs directly to producing departments. This method ignores any interactions that may exist among support departments.
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Job
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one distinct unit or set of units for which the costs of production must be assigned.
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Job-order cost sheet
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a subsidiary account to the work-in-process account on which the total costs of materials, labor, and overhead for a single job are accumulated.
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Job-order costing system
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a costing system in which costs are collected and assigned to units of production for each individual job.
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Materials requisition form
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a source document that records the type, quantity, and unit price of the direct materials issued to each job.
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Normal cost of goods sold
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the cost of goods sold before adjustment for any overhead variance.
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Normal cost system
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an approach that assigns the actual costs of direct materials and direct labor to products but uses a predetermined rate to assign overhead costs.
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Overapplied overhead
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the amount by which applied overhead exceeds actual overhead.
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Overhead variance
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the difference between actual overhead and applied overhead.
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Plantwide overhead rate
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a single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory.
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Predetermined overhead rate
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an overhead rate computed using estimated data.
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Process-costing system
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a costing system that accumulates production costs by process or by department for a given period of time.
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Producing departments
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units within an organization responsible for producing the products or services that are sold to customers.
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Reciprocal method
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a method that simultaneously allocates service costs to all user departments. It gives full consideration to interactions among support departments.
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Sequential (or step) method
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a method that allocates service costs to user departments in a sequential manner. It gives partial consideration to interactions among support departments.
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Support departments
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units within an organization that provide essential support services for producing departments.
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Time ticket
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a source document by which direct labor costs are assigned to individual jobs.
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Underapplied overhead
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the amount by which actual overhead exceeds applied overhead.
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