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System System!!
Cost Assignment
Formulas
What Am I?
100
It works by using processes to transform inputs into outputs that satisfy specific objectives?
What is a system? (Ref: Chapter 2, Objective 1, page 25.)
100
This can be anything for which costs are measured and assigned.
What is a cost object? (Ref: Chapter 2, Objective 2, page 31.)
100
Direct Materials cost + Direct Labor cost = ??
What is Prime Cost? (Ref: Chapter 2, Objective 3, page 36.)
100
An expired cost.
What is an expense? (Ref: Chapter 2, Objective 2, page 30.)
200
It can be divided into two major subsystem: (1) financial accounting information system and (2) cost management information system.
What is an accounting information system? (Ref: Chapter 2, Objective 1, page 26.)
200
The process of identifying and assigning costs to a cost object that are specifically or physically associated with the cost object.
What is direct tracing? (Ref: Chapter 2, Objective 2, page 32.)
200
Direct Labor Cost + Overhead Cost = ??
What is Conversion Cost? (Ref: Chapter 2, Objective 3, page 36.)
200
A cost that expires without producing any revenue benefit.
What is a loss? (Ref: Chapter 2, Objective 1, page 31.)
300
This system is concerned primarily with producing outputs for external users.
What is the financial accounting information system? (Ref: Chapter 2, Objective 1, page 27.)
300
Factors that causes changes in resource usage, activity usage, costs, and revenues.
What are drivers? (Ref: Chapter 2, Objective 2, page 32.)
300
Cost of good available for sale - Ending finished goods = ??
What is Cost of Goods Sold? (Ref: Chapter 2, Objective 4, page 41.)
300
Costs associated with making poor decisions based on bad cost information.
What are error costs? (Ref: Chapter 2, Objective 5, page 46.)
400
This system has three broad objectives: (1) Costing services, products, and other objects (2) Planning and control (3) Decision making
What is the cost management information system? (Ref: Chapter 2, Objective 1, page 27.)
400
The assignment of indirect costs to cost objects.
What is allocation? (Ref: Chapter 2, Objective 2, page 32.)
400
Beginning Inventory + Purchases - Ending Inventory = ?????
What is Direct Materials Used in Production? (Ref: Chapter 2, Objective 4, page 39.)
400
Consists of all partially completed units found in production at a specific point in time.
What is Work in Process (WIP). (Ref: Chapter 2, Objective 4, page 40.)