The practice of allocation manufacturing overhead cost by using one overhead cost rate for all products.
What is Broad averaging or Peanut-butter costing?
100
The examination of the behavior of total revenues, total costs, and operating income as changes occur in the units sold, the selling price, the variable cost per unit, or the fixed costs of a product.
What is Cost-volume-profit (CVP) analysis?
100
The costing system used when a company produces unique items.
What is job costing?
100
A department that provides a service to other departments but do not generate revenues.
What is a support department?
100
The costs of a production process that yields multiple products simultaneously.
What is Joints costs?
200
When a company undercosts one of its products and overcosts at least one of its other products.
What is Product-cost crosss subsidization?
200
SP-VCu/SP
What is the Contribution Margin Ratio?
200
A costing system that traces direct costs to a cost object by using the actual direct-cost rates times the actual quantities of the direct-cost inputs.
What is actual costing?
200
Allocate support department costs directly to operating departments.
What is the Direct method?
200
The juncture in a joint production process when two or more products become separately identifiable.
What is the Slitoff point?
300
Assigns costs to products based on its usage of resources.
What is ABC (Activity Based Costing)?
300
Sales minus Breakeven
What is Margin of Safety
300
Budgeted annual manufacturing overhead costs divided by the budgeted annual activity.
What is the budgeted (predetermined) overhead cost rate?
300
Fully recognizes the usage of all departments to others.
What is the Reciprocal method?
300
The product of a joint production process that have low total sales values compared to the total sales values of all products.
What is a Byproduct?
400
1. Identify the problem/uncertainties
2. Obtain information
3. Make predictions about the future.
4. Make decisions by choosing among alternatives.
5. Implement the decisions, evaluate performance and learn.
What is the Five-step decision making process?
400
Cost per unit remains constant.
What is variable costs?
400
WIP 78,000
MOH Control 8,000
Raw Materials Inventory 86,000
What is the journal entry to record the usage of direct and indirect materials?
400
Determines the weights for cost allocation by considering each user of the cost as a separate entity.
What is the Stand-alone method?
400
Allocates joints costs to joint products in whereas each product achieves an identical gross margin percentage.
What is the Constant gross margin Percentage method?
500
Calculating a cost rate for each activity and using that rate to allocated cost to a product.
What is implementing activity based costing?
500
Calculate the Breakeven, SP $200, VCu $120, Fixed Costs $2,000.
What is 25 units
500
MOH Control has a balance of 1,000,000 and MOH Applied has a balance of 989,000 resulting in a difference of $11,000.
What is underallocated MOH?
500
Ranks individual products in a bundle as determined by management and then uses this ranking to allocate bundled revenues to individual products.
What is the Incremental Revenue allocation method?
500
To compute inventoriable costs and costs of goods sold for financial reporting, tax authorities; internal reporting; cost reimbursement; insurance settlement; or litigation.