Activity Based Costing
Each activity may have a different cost ____
If the total estimated MOH is $100 and the total estimated cost driver is 10 machine hours, what is the allocated MOH rate?
What is $10/MH?
These are costs that vary in proportion to the number of units produced.
What are variable costs?
This does not require a standardized, explicit format and does not have to be GAAP approved.
What is managerial accounting?
This kind of cost is incurred each time a unit is produced.
What is unit-level cost?
If the allocated MOH is $10/DLH and 10,000 DLH has been incurred so far, what is the MOH cost?
What is $100,000?
What is increases?
These are the components/ways in which manufacturing overhead can be broken down.
What are indirect materials, indirect labor, and other MOH?
This is the function of managerial accounting in which managers create a budget for the period.
What is planning?
For activity-based costing, we find the allocated MOH according to each _____'s specific cost driver
What is activity?
This is the costing methodology in which costs are accumulated for each job.
What is job costing?
The difference between sales and variable costs in a variable costing income statement is.
What is the contribution margin?
These are the three stages an item goes through in a production process. Also known as inventory flow of goods.
What are raw materials, work-in-process, and finished goods?
These are the three functions of managerial accounting.
What is planning, directing, and controlling?
This kind of cost is incurred when frito-lays starts producing a batch of Lays chips
What is a batch level cost?
In this situation, we subtract from the COGS since the actual MOH turned out to be less than the allocated MOH for a period. We say that we ___applied MOH.
What is over?
As units produced increases, the fixed cost per unit ____
What is decreases?
These are the components of the income statement.
What are sales revenue, COGS, gross margin, operating expenses, and net income/operating income?
This is the function of managerial accounting in which managers act on the plan, overseeing day to day operations.
What is directing?
These are the four cost hierarchies.
What are unit level costs, batch level costs, product level costs, and facility level costs?
In order to find the allocated MOH rate, we would need to take the total ____ MOH and divide it by the total ____ cost driver
What is estimated?
When using the high-low method, we pick the highest and lowest ____ produced.
What is units?
These are the six components of the value chain.
What are R&D, design, production, marketing, distribution, and customer service?
This is the function of managerial accounting in which managers reflect on the feedback they got throughout the period and compare the results to the plan.
What is controlling?