Concepts
Accumulates costs by job number
Job order costing
Not just the first three letters of the alphabet
ABC
Irrelevant cost that went down with the ship
Sunk
Normal starting point for master budget
Sales
Year the Browns went to the SuperBowl.
NEVER!
Ind mat, ind lab, factory ins, depn, taxes...
Manufacturing overhead
Not what the lion tamer cracks
Potential benefit given up to select another
Opportunity cost
Budgeted sales + end inv - beg inv
Prod or purchases
Std costing is tool of this management practice
Mgmt by exception
DM + DL + MFG OH + BEG WIP - END WIP
CGM
Popular continuous improvement technique
TQM
Common cost incurred up to the split-off point
Joint costs
Budget designed for several levels of activity
Flexible
Kent State Grad who started largest CPA review course.
Newt Becker
Direct materials + Direct labor
Prime costs
Pull inventory and production system
JIT
Criteria for sell or process further
Do increase rev > increase costs
US Pres and 'Father' of zero based budgeting
Jimmy Carter
Christine Ross became this in 1899
First Woman CPA
Where underapplied overhead ends up
CCS
Net operating income / ave operating assets
ROI
Maximizes profit when constrained resource
CR/constrant resource
Discount rate at which the NPV of a project is 0
IRR
Who starred in "The Accountant".
Ben Afleck