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37 Cards in this Set

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actual cost
cost incured (a historical or past cost) as distinguished from a budgeted or forcasted cost
average cost
(or unit cost) cost computed by dividing total cost by the number of units
budgeted cost
predicted or forcasted cost (future cost) as distinguished from an acual or historical cost.
conversion costs
all manufacturing costs other than direct materials cost
cost
resource sacrificed or forgone to achieve a specific objective
cost accumulation
collection of cost data in some organized way by means of an accounting system
cost allocation
assighnment of indirect costs to a particular cost object
cost assignment
general term that emnompasses both tracing accumulated costs that have a direct relationship to a cost object and allocating accumulated costs that have an indirect relationship to a cost object
cost driver
a variable, such as the level of activity or voumet that casually affects costs over a given time span
cost object
anything for which a measurement of costs is desired
cost of goods manufactred
cost of goods brought to completion, whether they were started before or during the current accounting period
cost tracing
describes the assighment of direct costs to a particular cost object
direct costs of a cost object
costs related to the particular cost object that can be traced to the at object in an economically feasible (cost effective) way
direct manufacturing labor costs
include the compensation of all manufacturing labor that can be traced to the cost object (work in process and then finished goods) in an economically feasible way
direct material costs
Acquisition of costs of all materials that eventually becom part of the cost object (work in process and then finished goods) and that can be traced to the cost object in an economically feasible way
direct material inventory
direct materials in stock and awaiting use in the manufacturing process
factory overhead costs
(indirect manufacturing costs) All manufacturing costs that are related to the cost object (work in process and then finished goods)but that cannot be traced to that object in an economically feasible way.
finished goods inventory
goods completed but not yet sold
fixed cost
cost that remains unchanged in total for a given time period despite wide changes in the related activity in total activity or volume
idle time
wages paid for unproductive time caused by lack of orders, machine breakdowns, material shortages, poor scheduling and the like
indirect costs of a cost object
costs related to the particular cost object that cannot be traced to that object in an economically feasible way
indirect manufacturing costs
all manufacturing costs that are related to the cost object (work in process and then finished goods) but that cannot be traced to that cost object in an economically feasible way (also called manufacturing overhead costs and factory overhead costs)
inventoriable costs
all costs of a product that are considered as assets in the balance sheet when they are incurred and that become cost of goods sold only when the product is sold
manufacturing overhead costs
(indirect manufacturing costs)all manufacturing costs that are related to the cost object (work in process and then finished goods) but that cannot be traced to that cost object in an economically feasible way
manufactring sector companies
companies that purchase materials and componets and convert them into various finished goods
merchandising sector companies
Companies that purchase and then sell tangible products without changing their basic form
operating income
total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)
overtime premium
Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straightime rates)
period costs
all costs in the income statemnt other than costs of goods sold
prime costs
all direct manufacturing costs
product cost
sum of the costs assigned to a product for a specific purpose
relevant range
band of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question
revenues
inflows of assets (usually cash or accounts receivable) received for products or services provided to customers
service sector companies
companies that provide services or ingtangible products to their customers
unit cost
cost computed by dividing total cost by the number of units (also called average cost)
variable cost
cost that changes in total in proportion to changes in the related level of total activity or volume
work in process inventory
goods partially worked but not yet completed