Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/16

Click to flip

16 Cards in this Set

  • Front
  • Back
A costing method that includes all manufacturing costs--direct materials, direct labor, and both variable and fixed overhead--as part of the cost of a product. (also full cost)
Absorption costing
A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects.
Allocation base
A document that shows the type and quantity of each major item of materials required to make a product.
Bill of materials
A factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs.
Cost driver
A form prepared for each job that records the materials, labor, and overhead costs charged to the job.
Job cost sheet
A costing system used in situations where many different products, jobs, or services are produced each period.
Job-order costing system
A detailed source document that specifies the type and quantity of materials that are to be drawn from the storeroom and identifies the job to which the costs of materials are to be charged.
Materials requisition form
A costing system in which overhead costs are applied to jobs by multiplying a predetermined overhead rate for each cost pool, rather than a single predetermined overhead rate for the entire company. Frequently, each production department is treated as a separate overhead cost pool.
Multiple predetermined overhead rates
A costing system in which overhead costs are applied to jobs by multiplying a predetermined rate by the actual amount of the allocation base incurred by the job.
Normal cost system
A credit balance in the MOH account that occurs when the amount of overhead cost applied to Work in Process is greater than the amount of overhead cost actually incurred during a period.
Overapplied application
The process of charging MOH cost to job cost sheets and to the Work in Process account.
Overhead application
A single predetermined overhead rate that is used throughout a plant.
Plantwide overhead rate
A rate used to charge overhead cost to jobs; the rate is established in advance for each period using estimates of total manufacturing overhead cost and of the total allocation base for the period.
Predetermined overhead rate
A costing system used in situations where a single, homogeneous product (such as cement or flour) is produced for long periods of time.
Process costing system
A detailed source document that is used to record the amount of time an employee spends on various activities.
Time ticket
A debit balance in the MOH account that occurs when the amount of overhead cost acutally incurred is greater than the amount of overhead cost applied to Work in Process during a period.
Underapplied overhead