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16 Cards in this Set
- Front
- Back
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Absorption Costing
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A costing method that includes all manufacturing costs in the cost of a product.
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Allocation Base
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A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects.
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Bill of materials
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A document that shows the quantity of each type of direct material required to make a product.
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Cost Driver
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A factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs.
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Job Cost Sheet
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A form prepared for a job that records the materials, labor, and manufacturing overhead costs charged to that job.
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Job-Order Costing
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A costing system used in situations where many different products, jobs, or services are produced each period.
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Materials requisition form
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A document that specifies the type and quanitity of materials to be drawn from the storeroom and that identifies the job that will be charged for the cost of those materials.
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Multiple predetermined overhead rates
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A costing system with multiple overhead cost pools and a different predetermined overhead rate for each cost pool, rather than a single predetermined overhead rate for the entire company.
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Normal Cost System
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A costing system in which overhead costs are applied to a job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job.
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Overapplied overhead
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A credit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost applied to Work in Process exceeds the amount of overhead cost actually incurred during a period.
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Overhead application
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The process of charging manufacturing overhead cost to job cost sheets and to the work in process account.
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Plantwide overhead rate
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A single predetermined overhead rate that is used throughout a plant.
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Predetermined overhead rate
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A rate used to charge manufacturing overhead cost to jobs that is established in advance for each period.
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Process costing
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A costing system used in situations where a single, homogeneous product is produced for long periods of time.
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Time Ticket
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A document that is used to record the amount of time an employee spends on various activities.
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Underapplied overhead
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A debit balance in the manufacturing overhead account that occurs when the amount of overhead cost actually incurred exceeds the amount of overhead cost applied to Work in Process during a period.
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