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25 Cards in this Set
- Front
- Back
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Cost Accounting System
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The techniques used to determine the cost of a product, service, sutomer, or other cost objective
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Service Departments
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Units that exist only to support other departments.
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Cost-Allocation Base
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A cost driver that is used for allocating costs.
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Direct Method
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A method for allocating sercie department costs that ignores other service departments when any given service department's costs are allcoated to the operating departments.
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Step-Down Method
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A method for allocating service daprment costs that recognizes that some service departments support the activities in other service departments as well as those in operating departments.
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Cost Application
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The allocation of total departmental costs to the revenue-producing products or services.
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By-Product
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A product that, like a joint product, is not individually identifiable until manufacturing reaches a split-off point, but has relatively insignificant total sales value.
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Budgeted Factory-Overhead Rate
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The budgeted total overhead for each cost pool divided by the budgeted cost-driver level.
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Normal Costing System
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The cost system in which the cost of the manufactured product is composed of actual direct material, actual direct labor, and normal applied overhead.
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Underapplied Overhead
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The excess of actual overhead over the overhead applied to products.
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Overapplied Overhead
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The excess of overhead applied to products over actual overhead incurred.
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Prorate
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To assign underapplied overhead or overapplied overhead in proportion to the sizes of the ending account balances.
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Fixed-Overhead Rate
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The amount of fixed manufacturing overhead applied to each unit of production. It is determined by dividing the budgeting fixed overhead by the expected volume of production for the budget period.
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Production-Volume Variance
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A variance that appears whenever actual production deviates from the expected volume of production used in computing the fixed overhead rate. It is calculated as (actual volume-expected volume) x fixed-overhead rate
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Volume Variance
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A common name for production-volume variance
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Job-Order Costing (Job Costing)
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The method of allocating costs to products that are readily indentified by individual units or batches, each of which requires varying degrees of attention and skill.
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Process Costing
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The method of allocating costs to products by averaging costs over large numbers of nearly identical products.
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Hybrid Costing Systems
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An accounting system that is a blend of ideas from both job costing and process costing.
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Job-Cost Record (Job-cost sheet, job order)
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A document that shows all costs for a particular product, service, or batch of products.
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Material Requisitions
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Records of material used in particular jobs.
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Labor Time Tickets (Time Cards)
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The record of the time a particular direct laborer spends on each job.
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Equivalent Units
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The number of completed units that could have been produced from the inputs applied.
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Weighted Average (WA) Process-Costing Method
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A process-costing method that adds the cost of (1) all work done in the current period to (2) the work done in the preceding period on the current period's beginning inventory of work in process, and divides the total by the equivalent units of work done to date.
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Transferred-In Costs
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In process costing, costs incurred in a previous department for items that have been received by a subsequent department.
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Backflush Costing
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An accounting system that applies costs to products only when the production is complete.
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