An area of accounting that involves measuring, recording, and reporting product costs.
What is Cost Accounting?
100
Manufacturing Costs, Work in Process Inventory, Finished Goods Inventory and Cost of Goods Sold.
What is the Flow of Costs?
100
A form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job.
What is a Job Cost Sheet?
100
Extends ABC from product costing to a comprehensive management tool that focuses on reducing costs and improving processes and decision making.
What is Activity-based Management (ABM)?
100
An activity that adds cost to or increases the time spent on a product or service without increasing its market value.
What is Non-value-added Activity?
200
A cost accounting system in which costs are assigned to each job or batch.
What is a Job Order Cost System?
200
It contains: Raw Materials, Factory Labor and Manufacturing Overhead.
What is Manufacturing Costs?
200
A document authorizing the issuance of raw materials from the storeroom to production.
What is a Materials Requisition Slip?
200
Activities required to support or sustain an entire production process.
What is Facility-level Activities?
200
Activities performed for each batch of products rather than for each unit.
What is Batch-level Activities?
300
The objective is to compute the cost per job.
What is an important feature of job order costing?
300
The three accounts that companies first accumulate manufacturing costs.
What is Raw Materials Inventory, Factory Labor, and Manufacturing Overhead?
300
A situation in which overhead assigned to work in process is greater than the overhead incurred.
What is Overapplied Overhead?
300
A processing system dedicated to having the right amount of materials, parts, or products arrive as they are needed, thereby reducing the amount of inventory.
What is Just-in-Time Processing (JIT)?
300
Activities performed for each unit of production.
What is Unit-level Activities?
400
A cost system used when a company manufactures a large volume of similar products.
What is a Process Cost System?
400
What companies do to Factory Labor costs as they are incurred.
What is a debit?
400
A rate based on the relationship between estimated annual overhead costs and expected annual operating activity, expressed in terms of a common activity base.
What is a Predetermined Overhead Rate?
400
Any event, action, transaction, or work sequence that incurs cost when producing a product or providing a service.
What is Activity?
400
Activities performed in support of an entire product line, but not always performed every time a new unit or batch of products is produced.
What is Product-level Activities?
500
Manufacturing cost accounts that are fully integrated into the general ledger of a company.
What is a Cost Accounting System?
500
How Manufacturing Overhead Costs are recognized by a company.
What is daily or periodically?
500
A situation in which overhead assigned to work in process is less than the overhead incurred.
What is Underapplied Overhead?
500
An overhead cost-allocation system that allocates overhead to multiple activity cost pools and assigns the activity cost pools to products or services by means of cost drivers that represent the activities used.
What is Activity-Based Costing (ABC)?
500
Any factor or activity that has a direct cause-effect relationship with the resources consumed. In ABC, cost drivers are used to assign activity cost pools to products or services.