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20 Cards in this Set

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Cost of goods sold
Cost of Goods Sold=
Beg Finished goods+
COGM-End Finished goods=COGS
Operating income
Revenues-COGS-Operating costs (except interest and income tax)
when costs are incurred in the factory they are
manufacturing overhead costs
when costs are incurred in marketing or outside the factory they are
period costs
costs that are all direct manufacturing costs
prime costs
direct manufacturing labor costs + direct material costs
prime costs
the greater the proportion of prime costs the more certain manufactures can be about accuracy of ___________
costs of products
all manufacturing costs other than direct materials
conversion costs
labor that can be traced to individual products
direct manufacturing labor
indirect labor
managers salaries
payroll fringe costs
are examples of
Manufacturing overhead
all manufacturing labor compensation other than for direct manufacturing labor and managers salaries is usually classified as
indirect labor costs
overtime premium is usually considered a __________- or _________
indirect cost or
overhead
a rush job premium is overtime that is a ________ cost of that job
direct
idle time is considered a ________ cost
indirect
Cost of goods manufactured
Beg DM+ Purch DM=
DIrect materials available-Ending DM=Direct materials used+Direct labor+indirect manufacturing costs=Manufacturing costs incurred+Beginning WIP=Total manufacturing cost to account for-ending work in process=COGM
assignment of indirect costs to a particular cost object
cost allocation
collection of cost data in some organized way by means of an accounting system
cost accumulation
general term that encompasses both 1)tracing accumulated costs that have a direct relationship to a cost object and 2)allocating accumulated costs that have an indirect relationship to a cost object
cost assignment
describes the assignment of direct costs to a particular cost object
cost tracing
Gross margin =
Revenues - Cost of Goods sold