Chapter 1 - Ops Mgmt - Cost Measurement Methods And Techniques

Front 1

Mixed Cost

Back 1

Cost that includes both variable costs and fixed costs.

Front 2

By-products

Back 2

Minor products of small value that resulted from the manufacture of the main product

Front 3

Joint products

Back 3

Outputs with significant value that cannot be distinguished for each product in the manufacturing process, so common costs must be allocated by some arbitrary means.

Front 4

FIFO Equivalent Units

Back 4

Beginning WIP X % to be completed (1-%complete)
+units completed
-units in beginning
+WIP ending X % completed
*Only use ending % complete

Front 5

Weighted Avg Equivalent Units

Back 5

Beginning inventory X % completed
+FIFO equivalent units
*Use beginning and ending inventory cost

Front 6

Joint Cost using quantity

Back 6

[Joint Cost
Less NRV of byproduct (end selling price X total qty)]
X (quantity of product @ split off/ total of quantity at split off)

Front 7

Prime Cost for DM

Back 7

Beginning DM+purchase+transportation-returns/allowance=materials available
Less end DM
=materials used

Front 8

Cost of goods transferred to finished goods (manufactured) COGM

Back 8

WIP beginning+DM (used)+DL+OH applied
=manufacturing incurred
less WIP end

Front 9

Calculate COGS

Back 9

Finished goods beginning
+COGM
=COG available for sale
Less finished goods end

Front 10

Job Order Costing

Back 10

Product costing for a sequentially moving manufacturing process. Used when few units are produced and each unit is unique.

Front 11

Process Costing

Back 11

Product costing that averages costs for large homogeneous items.

Front 12

Manufacturing Cost Calculation

Back 12

DM (used) + DL + OH applied

Front 13

Calculate overhead under/over applied

Back 13

1.Total standard costs / total standard hours = application rate per hour
2. Total actual hours * application rate = budgeted amount
3. Actual - budgeted amount = over/under applied OH