Acc 212 Exam 1

Front 1

5 successful strategies

Back 1

1. cost efficiency

2. quality

3. timliness

4. innovation

5. sustainability

Front 2

6 steps of the value chain

Back 2

1. basic R&D / applied R&D

2. testing and design

3. production

4. marketing

5. transportation

6. customer service

Front 3

cost-benefits

Back 3

behavioral impact

ethical impact

different costs/purposes

Front 4

office politics

Back 4

line position

staff position

Front 5

"staff/line" can never tell "staff/line" what to do

Back 5

staff

line

Front 6

involved with the mission of the business

ex. nurses, doctors, teachers, product makers

Back 6

line position

Front 7

provides the line with reports and such

Back 7

staff position

Front 8

4 themes of ethics

Back 8

competency

confidentiality

credibility

integrity

Front 9

traceable object

Back 9

direct

Front 10

non traceable object

Back 10

indirect

Front 11

cost:

constant per unit

variable total cost

Back 11

variable cost

Front 12

cost:

variable per unit

constant total cost

Back 12

fixed cost

Front 13

product costs

Back 13

direct materials

direct labor

variable MOH

fixed MOH

Front 14

order of manufacturing

Back 14

raw materials > WIP > finished goods > COGS

Front 15

on which statement are product costs found?

Back 15

balance sheet

Front 16

on which statement are period costs found?

Back 16

income statement

Front 17

period costs

Back 17

R&D

S&A

Front 18

why is R&D a period cost?

Back 18

b/c you cannot quantify/predict commercialism

Front 19

characteristics of job order costing

Back 19

high customer input

high variability

low volume

focus is on the job

Front 20

examples of job order costing

Back 20

home building (architect), custom items, accounting firms, lawyers

Front 21

characteristics of process costing

Back 21

little customer input

standard product

high volume

focus is on each department

Front 22

examples of process costing

Back 22

processed food products (Campbell's)

Front 23

does depreciation affect overhead?

Back 23

yes

Front 24

journalization for materials requisition form

Back 24

WIP (dr), Direct Materials (cr)

Front 25

journalization for tracking time (time ticket)

Back 25

WIP (dr), Direct Labor (cr)

Front 26

journalization for manufacturing overhead

Back 26

WIP (dr), MOH (cr)

Front 27

budgeted MOH rate

Back 27

budgeted MOH costs /

budgeted total quantity of cost allocation base

Front 28

should normal costing or actual costing be used?

Back 28

normal costing

Front 29

how to find the amount "cost allocated to job"

Back 29

MOHR x Actual Allocation Base

Front 30

3 ways to adjust for under/over allocation

Back 30

1. Proration

2. Write off to COGS

3. Adjusted Allocation Rate

Front 31

which adjustment for under/over allocation is used most for publicly held companies and larger accounts?

Back 31

proration

Front 32

ledger that defines the account in depth/details

Back 32

subsidiary ledgers

Front 33

5 steps of process costing

Back 33

1. summarize the flow of physical units of output

2. compute output in terms of equivalent units

3. summarize total costs to account for

4. compute cost per equivalent unit

5. assign total costs to units completed and to units in ending

Front 34

when are raw materials added?

Back 34

at the beginning

Front 35

when are conversion costs added?

Back 35

during/throughout the process

Front 36

as a managerial accountant, they use info to tell departments...

Back 36

if they're "in" or "out" of control

Front 37

ABC Indidcators

Back 37

1. Increase in product diversity

2. Increase in indirect costs (robots over humans)

3. Competition in product markets

Front 38

Guidelines for refining a costing system

Back 38

1. direct cost tracing

2. indirect cost pools

3. cost allocation base

Front 39

breaking overhead cost pool into cost hierarchy

Back 39

1. unit level pool (indirect mat, indirect labor)

2. batch level costs

(purchasing, receiving, scheduling, shipping)

3. product sustaining costs (R&D, design)

4. facility sustained levels (depr, tax, insurance, security, maintenance, secretary)

Front 40

to have ABM, must have ____

Back 40

ABC

Front 41

strategy

Back 41

how the organization matches its own capabilities with the opportunities in the marketplace

Front 42

strategic cost management

Back 42

cost management that specifically focuses on strategic issues

Front 43

R&D

Back 43

generating and experimenting with ideas related to new products, services, or processes

Front 44

design of products and processes

Back 44

detailed planning, engineering, and testing of products and processes

Front 45

procuring, transporting, and storing and coordinating and assembling resources to produce a product or deliver a service

Back 45

production

Front 46

promoting and selling products or services to customers or prospective customers

Back 46

marketing (including sales)

Front 47

processing orders and shipping products or services to customers

Back 47

distribution

Front 48

providing after sales service to customers

Back 48

customer service

Front 49

strategy that integrates people and technology in all business functions to deepen the relationships with customers, partners and distributors

Back 49

customer relationship management

Front 50

describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to customers regardless of whether those activities occur in one organization or multiple organizations

Back 50

supply chain

Front 51

the quantative expression of a proposed plan of action by management and is an aid to coordinating what needs to be done to execute the plan

Back 51

budget

Front 52

the assignment of indirect costs to a particular cost object

Back 52

cost allocation

Front 53

used to describe the assignment of direct costs to a particular cost object

Back 53

tracing

Front 54

a variable that casually affects costs over a given span of time

Back 54

cost driver

Front 55

the band or range of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question

Back 55

relevant range

Front 56

cost that is calculated by dividing the total cost by the related number of units produced

Back 56

unit cost = average cost

Front 57

all costs in the income statement other than cogs

Back 57

period costs

Front 58

all manufacturing costs that are related to the cost object but cannot be traced to that cost object in an economically feasible way

Back 58

indirect manufacturing costs

Front 59

the compensation of all manufacturing labor that can be traced to the cost object in an economically feasible way

Back 59

direct manufacturing labor costs

Front 60

the acquisition costs of all materials that eventually become part of the cost object in an economically feasible way

Back 60

direct materials costs

Front 61

companies that purchase and then sell tangible products without changing their basic form

Back 61

merchandising sector companies

Front 62

operating income =

Back 62

total rev - cogs - period costs

Front 63

a grouping of individual indirect cost items; range from broad to narrow

Back 63

cost pool

Front 64

a systematic way to link an indirect cost or group of indirect costs to cost objects

Back 64

cost allocation base

Front 65

when the cost object is a job, product, or customer, the cost allocation base is also called

Back 65

cost application base

Front 66

costing system in which the cost object is a unit or multiple units of a distinct product or service called a job

Back 66

job costing system

Front 67

costing system in which the cost object is masses of identical or similar units of a product or service

Back 67

process costing system

Front 68

a costing system that traces direct costs to a cost object based on the actual direct cost rates times the actual quantities of the direct cost inputs used

Back 68

actual costing

Front 69

indirect costs are allocated based on...

Back 69

(the actual indirect cost rate) x )actual quantities of cost allocation base)

Front 70

a costing system that traces direct costs to a cost object by using the actual direct cost rates times the actual quantities of the direct cost inputs and that allocates indirect costs based on the budged indirect cost rates times the actual quantities of the cost allocation base

Back 70

normal costing

Front 71

an original record that supports journal entries in an accounting system

Back 71

source document

Front 72

example of source document

Back 72

time card

Front 73

used to record and accumulate all the costs assigned to a specific job, starting when work begins

Back 73

job cost sheet / job cost record

Front 74

the amount of manufacturing overhead costs allocated to individual jobs based on the budged rate multiplied by the actual quantity of the allocation base used for each job

Back 74

manufacturing overhead allocated/ manufacturing overhead applied

Front 75

the spreading of under allocated manufacturing overhead or over allocated manufacturing overhead among ending work in process, finished goods, and cogs proportionately

Back 75

proration

Front 76

allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period

Back 76

over allocated/ over applied / over absorbed indirect costs

Front 77

allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period

Back 77

under allocated/ under applied/ under absorbed indirect costs

Front 78

a product consumes a high level of resources per unit but is reported to have a low cost per unit

Back 78

product undercosting

Front 79

a product consumes a low level of resources per unit but is reported to have a high cost per unit

Back 79

product overcosting

Front 80

costing outcome where one undercoated (overcosted) product results in at least one other products being overcosted (undercoated)

Back 80

product cost cross subsidization

Front 81

reduces the use of broad averages for assigning the cost of resources to cost objects (jobs/products/services) and provides better measurement of the cots of indirect resources used by different cost objects, no matter how differently various cost objects use indirect resources

Back 81

refined costing system

Front 82

refines a costing system by identifying individual activities as the fundamental cost objects

Back 82

activity based costing (ABC)

Front 83

an event, task, or unit of work with a specific purpose

Back 83

an activitiy

Front 84

categorizes various activity cost pools on the basis of the different types of cost drivers, cost allocation bases, or different degrees of difficulty in determining cause and effect relationships

Back 84

cost hierarchy

Front 85

costs of activities performed on each individual unit of a product or service

Back 85

output unit level costs

Front 86

costs of activities related to a group of units of a product or service rather than each individual unit of product or service

Back 86

batch level costs

Front 87

the costs of activities undertaken to support individual products or services regardless of the number of units or batches in which the units are produced

Back 87

product(service) sustaining costs

Front 88

the costs of activities that managers cannot trace to individual products or services but that support the organization as a whole

Back 88

facility sustaining costs

Front 89

a method of management decision making that uses activity based costing information to improve customer satisfaction and profitability

Back 89

activity based management (ABM)

Front 90

costs incurred in previous departments that are carried forward as the product's cost when it moves to a subsequent process in the production cycle

Back 90

transferred in costs/ previous department costs