Process Costing
Balance Scorecard and Environmental Disclosures
Variance Analysis
Activity Based Costing
Performance Measurement and Incentives
100
The type of object that process costing is trying to calculate costs for.
What are identical or similar mass-produced units of goods or services?
100
The three dimensions of the Triple bottom line.
What are People, Planet and Profit?
100
A budget prepared with all the assumptions managers made in the planning process at the beginning of the year but adjusted for the actual sales for the year.
What is a flexible budget?
100
The costs that in an ABC system are treated in a different way to the way they are treated in a traditional (a.k.a. peanut-butter) system.
What are overhead (indirect) costs?
100
A performance metric that measures the value created above the return required by investors.
What is residual income?
200
A derived amount of output that takes the quantity of each input (cost category) in units completed and units in process and converts the quantity of input (cost category) into the amount of completed units that could be produced with that quantity of input.
What is equivalent units?
200
It is the fourth dimension of the Balanced Scorecard with (1) Financial, (2) Customer, and (3) Internal Processes.
What is Learning and Growth?
200
A variance that indicates that the actual results, compared to the budgeted results, imply a lower operating income.
What is an unfavorable variance?
200
The result of using traditional (a.k.a. peanut butter) costing systems when calculating the cost of resources required for specialty, unique, or complex products.
What is undercosting?
200
The characteristics of an ideal performance measure.
What are objective, complete and responsive?
300
She was cold-called because she is the cat woman.
Who is Jenna Gagen?
300
The greenhouse gas indirect emissions from consumption of purchased electricity, heat, or steam.
What are Scope 2 emissions?
300
(Actual Price of Input - Budgeted Price of Input) x Actual quantity of Input Used
What is Input Price Variance?
300
Costs that are incurred to support products or services regardless of the number of units or batches in which the units are produced.
What are product-sustaining or service-sustaining costs?
300
The total assets if asset turnover is 4.5, operating income $675,000 and sales $9,000,000.
What is $2,000,000?
400
This method: (1) assigns the cost of the previous accounting period’s equivalent units in beginning WIP inventory to the first units completed and, (2) assigns the cost of equivalent units worked on during the current period first to complete beginning WIP inventory, next to start and complete units, and finally to ending WIP inventory.
What is the FIFO (first-in-first-out) process costing method?
400
The product or service of value divided by environmental influence (f. ex. consumption of energy, materials or water, or emissions of greenhouse gases or ozone depleting substances).
What is an eco-efficiency indicator?
400
The variance that is most likely to be reported when machine-hours are used as an overhead cost-allocation base, and the factory receives a rush order resulting in unplanned overtime that uses less-skilled workers on the machines.
What is an unfavorable variable overhead efficiency variance?
400
Budgeted total indirect cost divided by budgeted total units of the cost driver.
What is (budgeted) indirect cost allocation rate?
400
The measurement of investment that creates the highest incentive to eliminate idle capacity when managers are compensated on ROI.
What is total assets available?
500
Process costing is very simple if you do not have either of them.
What are beginning and ending inventory?
500
According to Prof. Vera-Muñoz and her coauthors this is the average decrease in value a firm experiences for every metric ton of carbon emissions it produces.
What is $212?
500
This is the variable manufacturing overhead spending variance when: - VMOH is allocated based on machine-hours - Budgeted allocation rate is $11.25 per machine-hour - Actual allocation rate is $11.00 per machine-hour - Machine-hours allowed given actual output are 27,000 - Actual machine-hours are 30,000
What is $7,500 favorable?
500
Overhead allocated to a product that requires 50 setups and 10 inspections in a company that budgeted total setup costs of $270,000 and a total of 45,000 setups and an allocation rate of $5 per inspection.
What is $350?
500
The WACC of a project funded with $1,000,000 of debt and $1,000,000 of equity when the cost of debt is 8%, the cost of equity 12% and the marginal tax rate 40%.
What is 8.4%?
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