______ is also called full costing, and asumes that products absorb all costs incurred to produce them.
What is absorbtion costing.
100
the _____ is the sales level at which a company neither earns a profit nor incurs a loss.
What is break even point.
100
What does ABC stand for?
What is Activity Based Costing
100
the _____ is a way to estimate the cost equation by graphically connecting the two cost amounts at the highest and lowest unit volumes.
What is high low method.
100
An Inventory management philosophy that focuses on purchasing raw materials just in time for production and completing finished goods just in time for delivery to customers.
What is Just in time?
200
under absorbtion costing, ____ and ____ overhead costs are included in product costs.
What is variable and fixed.
200
the _____ is the amount by which a products unit selling price exceeds its total variable cost per unit.
What is contribution margin
200
a ______ is a collection of costs that are related to the same or similar activity.
What is activity cost pool.
200
The X or (run) values for High-low.
What is number of units?
200
Cost incurred to avoid poor quality goods or services.
What is Prevention Costs?
300
under _____ costing, only costs that change in total with changes in production levels are included in the products cost.
What is variable costing
300
Costs that change, but not in direct proportion to changes in volume. They have both variable costs and fixed costs components.
What is Mixed Costs?
300
total overhead costs for company X = 4,000,000. Total direct labor hours are estimated to be $400,000. What is the plantwide overhead rate based on DL hours?
What is $10/DLH
300
High-low, regression and scatter plots are used to calculate this kind of cost behavior.
What is Mixed Cost?
300
An example is a machine set up for a order of 100 of a product in a manufacturing plant.
What is Batch-level activity costs?
400
using the following data:
1000 units produced
DM = $6
DL $10
V OH = $6
V Selling and administrative = $2
Fixed overhead = $6,000
Fixed selling and administrative = $2,000
WHAT IS THE PRODUCT COST UNDER ABSORBTION COSTING?
What is $28
400
Patents on the process used to create materials used in a shoe is an example of this cost behavior.
What is Fixed cost?
400
name an advantage of using a plantwide overhead rate?
What is SIMPLICITY and INFORMATION READILY AVAILABLE
400
Find the Variable costs per unit using High-low method
Month Units FOH
1 1,520 $36,375
2 1,250 38,000
3 1,750 41,750
4 1,600 42,360
5 2,350 55,080
6 2,100 48,100
7 3,000 59,000
8 2,750 56,800
What is 12$?
400
Overcosting some products while undercosting some products.
What is cost distortion?
500
using the following data:
1000 units produced
DM = $6
DL $10
V OH = $6
V Selling and administrative = $2
Fixed overhead = $6,000
Fixed selling and administrative = $2,000
WHAT IS THE PRODUCT COST UNDER VARIABLE COSTING?
What is $24
500
A cost behavior that increases directly proportional to units produced.
What is Variable Costing?
500
a _____ is an activity that causes costs to be incurred.
What is cost driver.
500
The band of volume where total fixed costs remain constant at a certain level and where the variable cost per unit remains constant at a certain level.
What is Relevant Range?
500
Cost incurred when the company does not detect poor-quality goods or services until after delivery is made to the customer.