Show:
Traditional Costing
ABC Costing
Formulas (Includes previous chapters)
Classifying Activity Levels
Older Chapters
100
These are the unit costs under traditional costing.
What is direct materials, direct labor, and overhead?
100
This is the long name for the abbreviated term, ABC.
What is activity-based costing?
100
Estimated Overhead Per Activity / Expected Use of Cost Drivers Per Activity
What is activity-based overhead rate?
100
Activities performed for each batch of products rather than each unit
What is batch-level activities?
100
These are the three job cost sheets.
What is materials requistion slip, time ticket, and POR
200
Under traditional costing, this is the professional service performed, and it is the basis for overhead application to each audit job.
What is direct labor?
200
These are the two main terms used for ABC costing.
What is activity cost pools and cost drivers?
200
Estimated Annual Overhead Costs / Expected Annual Operating Activity
What is Predetermined Overhead Rate?
200
Activities performed for each unit of production.
What is unit-level activities?
200
These are the three manufacturing costs.
What is direct materials, direct labor, and manufacturing overhead?
300
This is the main advantage when using traditional costing over ABC costing.
What is less expensive?
300
A benefit of ABC costing is that it leads to better of these.
What are management decisions?
300
Actual Overhead > Applied Overhead
What is underapplied?
300
Activities performed in support of an entire product line.
What is product-level activities?
300
A balance sheet helps to find this as a total.
What are current assets?
400
Along with the unit of direct labor, this is used to help calculate the overhead for traditional costing.
What is predetermined overhead rate?
400
Any factor or activity that has a direct cause-effect relationship with the resources consumed.
What is a cost driver?
400
Beg. finished goods inventory + Cost of goods manufactured - Ending finished goods inventory =
What is Cost of goods sold?
400
Activities required to support or sustain an entire production process
What is facility-level activities?
400
These are the four T-accounts in the job order cost flow.
What are: manufacturing costs, work in process inventory, finished goods inventory, and cost of good sold
500
T or F..Traditional costing systems can determine the exact cost of a product or service every time.
What is false?
500
This is the reasoning behind ABC cost allocation. HINT: page 149
What is "Products consume activities, and activities consume resources"
500
Selling Expenses + Administrative Expenses=
What is Period costs?
500
This is not always performed every time a new unit or batch of products is produced.
What is product-level activities?
500
For a manufacturing overhead T-Account, this is on the debit side and that is on the credit side. (Say "this" first then "that" second)
What is actual and applied?