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12 Cards in this Set
- Front
- Back
Cost management system
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System to provide information about the cost of process, products, and services used and produced by an organization.
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Cost Systems should have
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1) Cost Systems should have a decision focus.
2) Different cost information is used for different purposes. 3) Cost information for managerial purposes must meet the cost-benefit test. |
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Predetermined overhead rate
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Estimate overhead/Estimated allocation base
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Two stage cost allocation
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Process of first allocating costs to intermediate cost pools and then to individual cost objects using different allocation bases.
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job
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unit of product that is easily distinguished from other units
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continuous flow processing
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system that mass-produces a single, homogenous output in a conituning process
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job costing
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accounting system that traces costs to individual units or to specific jobs, contracts, or batches of goods.
ie. construction, consulting, hospitals |
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process costing
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accounting system used when identical units are produced through a series of uniform production steps
ie. Pertroleum, Paint |
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operation costing
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Hybrid costing system often used in manufacturing goods that have some common characteristics plus some individual characteristics
ie. Clothing, Automobile, Furniture |
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operation
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standarized method or technique that is repetively performed.
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overhead as a percentage of labor costs
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overhead related to direct labor/ direct labor costs
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Watch Allocation Base!!, Make sure to convert to labor hours etcetra
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If units are produced are given, multiply by labor hours used for to produce units to get total labor hours!
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