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85 Cards in this Set
- Front
- Back
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Beginning Merchandise Inventory + Purchases - Ending Merchandise Inventory |
Cost of Goods Sold |
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Advertising |
Selling Cost |
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Shipping |
Selling Cost |
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Sales Travel |
Selling Cost |
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Sales Commissions |
Selling Cost |
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Sales Salaries |
Selling Cost |
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Costs of warehouses to store finished goods |
Selling Cost |
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Executive Compensation |
Administrative Cost |
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General Accounting |
Administrative Cost |
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Secretarial Work |
Administrative Cost |
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Public Relations |
Administrative Cost |
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Direct Materials + Direct Labor + Manufacturing Overhead Applied |
Total Manufacturing Cost or Product Cost |
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$ per direct labor hour x # direct labor hours worked |
Manual Overhead Applied |
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Total manufacturing cost / number of units |
Unit Product Cost |
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Usually used when there are distinct variations in the products being manufactured or services provided |
Job-Order Costing |
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Usually used when a large quantity of the same product is being produced |
Process Costing |
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Used because actual overhead costs will not be known until the end of the year |
Predetermined Overhead Rate |
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Includes all costs that are required in making or purchasing a product |
Product Cost |
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All selling and administrative costs |
Period Costs |
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Varies in total in direct proportion to changes in the level of activity. Constant per unit. |
Variable Cost |
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Does not change as levels of activity change |
Fixed Cost |
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Part variable and part fixed |
Mixed Cost |
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Sample points plotted on graph and fixed costs appear where regression line crosses the "Y" axis, variable costs based on slope of the line |
Scattergraph Method |
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Method of separating mixed cost into fixed & variable by analyzing change in cost between highest & lowest levels of activity |
High-Low Method |
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Uses a mathematical model to determine a line of best fit (most accurate method) |
Least-Squares Regression Method |
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Costs accumulated by department |
Process Costing |
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Costs accumulated by particular customer orders |
Job-Order Costing |
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Unit costs computed by department |
Process Costing |
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Unit costs computed by job |
Job-Order Costing |
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Organizational unit where work is performed on a product & materials, labor, or overhead costs are added to the product |
Processing Department |
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Each processing department maintains a separate ______________________ account. |
Work in Process |
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Has only one Work in Process account |
Job-Order Costing |
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Once units are completed they are transferred to |
Finished Goods Account |
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Materials, labor, and overhead costs can be added in __________ processing department |
Any |
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Managerial Accounting is concerned with |
Providing info for use within the organization |
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A focal point of a company's strategy should be |
Its target customer |
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Change in costs / change in units |
Variable cost per unit |
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Total variable cost + total fixed cost |
Total cost |
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Total cost - total variable cost |
Total fixed cost |
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Sales - Cost of Goods Sold |
Gross Margin |
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The potential benefit that is given up when one alternative is selected rather than another |
Opportunity Cost |
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Sales - Variable Expenses |
Contribution Margin |
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Variable costs per unit will remain constant and fixed costs per unit will fluctuate |
Within the relevant range |
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Includes all manufacturing costs except direct materials and direct labor |
Manufacturing Overhead |
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Estimated total manufacturing overhead cost/Estimated total amount of allocation base |
Predetermined Overhead Rate |
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Beginning Inventory + Transferred In = Sold (Transferred Out) + ___________ |
Ending |
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Selling and shipping costs are not included in |
Cost of Goods Sold |
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When indirect materials requisitions for use in prod the _____________account should be debited |
Manufacturing Overhead |
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WIP Beginning + Total Manufacturing Costs - WIP End |
Cost of Goods Manufactured |
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Of the same kind/alike |
Homogeneous |
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Units xferred to next dept or finished goods + Equivalent units in ending WIP inventory |
Equivalent units in ending WIP inventory |
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Direct Labor Cost + Manufacturing Overhead Cost |
Conversion Cost |
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(Cost of beg. WIP inventory + Cost added during the period) / Equivalent units of prod |
Cost per equivalent unit |
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Process costing method - equivalent units & unit costs relate only to work done during current period |
FIFO method |
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Hybrid costing system - products have some common and some individual characteristics |
Operation Costing |
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Costing method - essentially homogeneous products are produced on continuous basis |
Process Costing |
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Organizational unit where work is performed on product & manufacturing costs added to product |
Processing Department |
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Process costing method that blends together units and costs from current & prior periods |
Weighted-Average Method |
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Costing method that includes all manufacturing costs in the cost of a product |
Absorption Costing |
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Measure of activity used to assign costs to cost objects |
Allocation Base |
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Document that shows the quantity of each type of direct material required to make a product |
Bill of Materials |
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A factor that causes overhead costs |
Cost Driver |
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Manufacturing costs associated with the goods that were finished during the period |
Cost of Goods Manufactured |
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Units of product that have been completed but not yet sold to customers |
Finished Goods |
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Form that records the materials, labor, and manufacturing overhead costs charged to a job |
Job Cost Sheet |
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Doc that specifies type & quantity of materials to be drawn from storeroom & job to be charged |
Materials Requisition Form |
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Costing system with multiple overhead cost pools & different predetermined overhead rates |
Multiple Predetermined Overhead Rates |
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Overhead costs applied to job by multiplying predetermined overhead rate by actual amt of allocation base |
Normal Cost System |
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Credit balance in Manufacturing Overhead account due to amt overhead applied exceeds amt actually incurred |
Overapplied Overhead |
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Process of charging manufacturing overhead cost to job cost sheets and WIP acct |
Overhead Application |
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Single predetermined overhead rate used throughout a plant |
Plantwide Overhead Rate |
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Rate used to charge manufacturing overhead cost to jobs - established in advance each period |
Predetermined Overhead Rate |
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Any materials that go into the final product |
Raw Materials |
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Schedule that contains the 3 elements of product costs & portions in ending WIP & Finished Goods |
Schedule of Cost Of Goods Manufactured |
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Schedule that contains the 3 elements of product costs & portions in ending Finished Goods & COGS |
Schedule of Cost of Goods Sold |
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Document that is used to record amount of time an employee spends on various activities |
Time Ticket |
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Debit balance in Manufacturing Overhead acct -when amt of overhead incurred exceeds amt applied |
Underapplied Overhead |
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Units of product only partially complete & will require further work before ready for sale |
Work In Process |
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Cost already incurred and cannot be changed by any decision made now or in the future. |
Sunk Cost |
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Costs incurred to secure customer orders & get finished product or service into the hands of the customer |
Selling Costs |
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Range of activity within which assumptions about variable & fixed cost behavior are valid |
Relevant Range |
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Direct materials plus direct labor costs |
Prime Cost |
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Change in cost / Change in activity |
Variable Cost |
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Equation to calculate the total mixed cost for any level of activity within the relevant range |
Y = a + bX |
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Selling expenses + Administrative expenses |
Period Cost |
