Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
40 Cards in this Set
- Front
- Back
Administrative Costs
|
All executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing or selling
|
|
common cost
|
a cost that is incurred to support a number of cost objects but cannot be traced to them individually.
|
|
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. ie: products, customers, jobs.
|
|
Cost of goods manufactured
|
the manufacturing costs associated with the goods that were finished during the period
|
|
differential cost
|
a difference in cost between two alternatives (see incremental cost)
|
|
differential revenue
|
the difference in revenue between two alternatives
|
|
direct cost
|
a cost that can be easily and conveniently traced to a specified cost object
|
|
direct labor
|
factory labor costs that can be easily traced to individual units of product. also called touch labor.
|
|
direct materials
|
materials that become an integral part of a finished product and whose costs can be conveniently traced to it
|
|
finished goods
|
units of product that have been completed but not yet sold to customers
|
|
fixed cost
|
a cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. if a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity
|
|
incremental cost
|
an increase in cost between two alternatives (see differential cost)
|
|
indirect cost
|
a cost that cannot be easily and conveniently traced to a specified cost object
|
|
indirect labor
|
the labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be conveniently traced to particular products
|
|
indirect materials
|
small items of material such as glue and nails that may be an integral part of the finished product, but whose costs cannot be easily or conveniently traced to it
|
|
inventoriable costs
|
synonym for product costs
|
|
manufacturing overhead
|
all manufacturing costs except direct materials and direct labor
|
|
opportunity cost
|
the potential benefit that is given up when one alternative is selected over another
|
|
period costs
|
costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued
|
|
prime cost
|
direct materials cost plus direct labor cost
|
|
product costs
|
all costs that are involved in acquiring or making a product. in the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead. (see inventoriable costs)
|
|
raw materials
|
any materials that go into the final product
|
|
relevant range
|
the range of activity within which assumptions about variable and fixed cost behavior are valid
|
|
schedule of cost of goods manufactured
|
a schedule showing the direct materials, direct labor, and manufacturing overhead costs incurred during a period and the portion of those costs that are assigned to Work in Process and Finished goods.
|
|
Selling costs
|
all costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer
|
|
sunk cost
|
a cost that has already been incurred and that cannot be changed by any decision made now or in the future
|
|
variable cost
|
a cost that varies, in total, in direct proportion to changes in the level of activity. a variable cost is constant per unit.
|
|
work in process (WIP)
|
units of product that are only partially complete
|
|
appraisal costs
|
costs that are incurred to identify defective products before the products are shipped to customers
|
|
external failure costs
|
costs that are incurred when a product or service that is defective is delivered to a customer
|
|
internal failure costs
|
costs that are incurred as a result of identifying defective products before they are shipped to customers
|
|
ISO 9000 standards
|
quality control requirements issued by the international organization for standardization that relate the products sold in European countries
|
|
prevention costs
|
costs that are incurred to keep defects from occurring
|
|
quality circles
|
small groups of employees that meet on a regular basis to discuss ways of improving quality
|
|
quality cost
|
costs that are incurred to prevent defective products from falling into the hands of customers or that are incurred as a result of defective units
|
|
quality cost report
|
a report that details prevention costs, appraisal costs, and the costs of internal and external failures
|
|
quality of conformance
|
the degree to which a product or service meets or exceeds its design specifications and is free of defects or other problems that mar its appearance or degrade its performance
|
|
statistical process control
|
a charting technique used to monitor the quality of work being done in a workstation for the purpose of immediately correcting any problems
|