Job Costing
This is used by businesses to price identical products.
What is process costing?
This system creates homogeneous activity-related cost pools.
What is ABC (activity based costing)?
This schedule is the starting point for producing a budget.
What is the revenue schedule?
A ________ is anything for which a measurement of costs is desired.
What is a cost object?
This is the source document for direct materials purchased.
What is a purchase invoice?
This is used by businesses to price unique products for different jobs.
What is job costing?
These are the fundamental cost objects of ABC.
What are activities?
This type of accounting focuses on who should be asked about the information.
What is responsibility accounting?
A ________ is a grouping of individual indirect cost items.
What is a cost pool?
This is the source document for direct materials used.
What is a materials requisition record?
This is what you find by taking the budgeted annual indirect costs divided by the actual quantity of cost-allocation base.
What is a predetermined indirect cost rate?
When this occurs, a product may result in being priced too high.
What is overcosting?
This is the initial plan of what the company intends to accomplish in the period and evolves from both the operating and financing decisions.
What is a master budget?
Assigning direct costs to a cost object is called ________.
What is cost tracing?
This is the source document for direct manufacturing labor.
What is a labor time card?
If a cost cannot be classified as direct materials or direct manufacturing labor costs, then it will be classified as _______.
What are indirect costs or manufacturing overhead?
The goal of a properly constructed ABC system is to identify more of these in hopes of reducing costs.
What are indirect costs?
A budgeted balance sheet would represent a type of this budget.
What is a financial budget?
________ is the process of assigning indirect costs to products.
What is cost allocation?
This is the source document for finished goods.
What is job-cost record?
This helps managers get information earlier and take corrective measures to improve labor efficiency.
What is normal costing?
ABC and traditional systems are similar in their treatment of these costs.
What are direct costs?
A budgeted income statement would represent a type of this budget.
What is operating budget?
This includes both traced direct costs and allocated indirect costs.
What is cost assignment?
This is the source document for cost of goods sold.
What is sales invoice?