The primary users of managerial accounting reports
Internal Management
Selling and Administrative Costs are classified as
Period Costs
Allocation Base is also known as
Cost Driver
The method to allocate overhead using activity costs pools is called
Activity Based Costing
Separate manufacturing overhead rates for each department are called
Departmental Overhead Rates
Management runs the company operations on a day-to-day basis is called
Directing
What 3 cost classifications make up product costs?
DM + DL + MOH
The formula for calculating the predetermined overhead rate (POHR)
Estimated MOH / Estimated Cost Driver
A statistical measure that indicates the strength and relationship between two variables
Correlation
When overhead is allocated to every product using the same overhead rate
Plantwide Overhead Rate
Setting goals and objectives for the company is called
Planning
The payroll cost of employees who physically convert the raw materials into the product
Direct Labor Cost
Widdig Corp allocates overhead based on DL Hours. The POHR is $10. Job 700 has $200 of Direct Materials, $200 of direct labor cost and direct labor workers make $50 per hour. What is the total cost of Job 700?
$440= DM $200+DL $200+ MOH $40
Overcosting some products while undercosting other products
Cost Distortion
Which Cost of Quality catagories would represent lost profits from lost customers
External Failure Costs
The ethical standard to abstain from engaging in activities that would discredit the accounting profession
Integrity
Completed goods that have not been sold yet.
Finished Goods Inventory
How is product cost affected if allocated overhead was more than the actual overhead incurred?
The product was overcosted
Another term for lean operations
Just in Time Manufacturing
A machine set-up would be which type of cost?
Unit, Batch, Product, Facility
Batch Level Cost
The professional standard that states the accountant should be able to preform duties in accordance with relevant laws, regulations and technical standards
Competence
Costs that stay constant in total dispite changes in volume
Fixed Costs
A manufacturing company would have 3 inventory accounts, what are they?
Raw Materials
WIP (Work in process)
Finished Goods
Name the four costs of quality classifications we discussed in class
Prevention Costs
Appraisal Costs
Internal Failure Costs
External Failure Costs
Reworking defective units before they are sold to the customer would be classified as what type of quality cost?
Internal Failure Costs