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41 Cards in this Set

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Administrative Costs
All excecutive, organizationla, and clerical costs associated with the general management of an organization rather than with manufacturing, marketing, or selling.
Budget
A detailed plan for th future, usually expressed in formal quantitative terms.
Common Cost
A cost that is incurred to support a number of cost objects but cannot be traced to them individually. (Wage of a plane pilot is common cost to all passengers)
Control
The process of instituting procedures and obtaiing feedback to ensure that all parts of the organization are functioning effectively and moving toward overall company goals.
Controlling
Ensuring that the plan is actually carried out and is appropriatly modified as circumstances change.
Conversion Cost
Direct labor cost plus manufacturing overhead cost.
Cost Behavior
The way in which a cost reacts to changes in the level of activity.
Cost object
Anything for which cost data are desired. Examples of possible costs objects are products, product lines, customers, jobs, etc.
Cost of goods manufactured
The manufacturing costs associated with the goods that werefinished during the period.
Differential Cost
A difference in cost between any two alternatives.
Differential revenue
A difference in revenue between two alternatives
Direct Cost
A cost that can be easily and conveniently traced to a specific cost object.
Direct Labor
Labor costs that can be easily traced to individual unito of product
Direct Materials
Materials that become an in tegral part of a finished product and whose costs can be conveniently traced to it.
Directing and Motivating
Mobilizing people to carry out plans and run routine operations
Feedback
Accounting and other reports that help mangers montor performance and focus on problems and/or opportunites
Financial Accounting
The phase of accoutning concerned with providing information to stockholders, creditors, and other outised the organization.
Finished Goods
Units of product that have been completed but have not yet been sold to customers
Fixed Cost
A cost that remains constant, in total, regardless of changes int he level of activity with in the releveant range. (ex. rent)
Incremental Cost
An intreas in cost between two alternatives.
Indirect Cost
A cost that cannot be easily and conveniently traced to a specific cost object.
Indirect Labor
The labor costs of janitors, supervisors, material handlers, and other factory workers that cannot be conveniently traced directly to particular producs
Indirect Materials
Small items of material such as glue and nails. Costs cannot be convieniently traced.
Inventoriable Costs
Product Costs
Mangerial Accounting
The phase of accounting concerned with providing information to managers for use in planning an controlling operations and in decision making.
Manufacturing overhead
all costs associated with manufacuring except direct materials and direct labor.
Opportunity Cost
A potential benefit that is given up with one alternative is lselcted over another
Performance report
A detailed report comparing budgeted data to actual data.
Period Costs
Costs that are teken directly to the income statement as expnses in the period in wihd tey are incurred or accrued.
Planning
Selection a course of actiona nd specifying how the action will be implemented.
Planning and Controlling Cycle
The flow of management activites through planning, direction and motivation, and controlling, then back to planning again.
Prime Cost
Direct materials cost pluse direct labor cost.
Product Costs
All costs that are involved in the the purchase or manufacture of goods. (Direct Materials + Direct Labor+ Manufacturing Overhead)
Raw materials
Materials that are used to make a product.
Relevant Range
The range of activity within which assumptions about variable and fixed cost behavior are valid.
Scheduel of cost of goods manufactured
A schedule showing the direct materials, driect labor, and MO, costs incurred during a period and the portion fo those costs assigned to Work in Progress and Finished Goods
Segment
Any part of an org. that can be evaluation independently of other parts and about wich the manager seeks financial data. (product line, sales territory, etc)
Selling Costs
All costs necessary to secure customer orders and get hte finished product or service ion the hands of the customer.
Sunk Cost
A cost that has alread been incurred and that cannot be changed by any decsion made now or in the future.
Variable Cost
A cost that varies, in total, in driect proportion to changes in the level of activity.
Work in process
Units of product that are only partially complete and will require further work before they are ready for sale to a customer.