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37 Cards in this Set
- Front
- Back
actual cost
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cost incured (a historical or past cost) as distinguished from a budgeted or forcasted cost
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average cost
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(or unit cost) cost computed by dividing total cost by the number of units
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budgeted cost
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predicted or forcasted cost (future cost) as distinguished from an acual or historical cost.
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conversion costs
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all manufacturing costs other than direct materials cost
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cost
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resource sacrificed or forgone to achieve a specific objective
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cost accumulation
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collection of cost data in some organized way by means of an accounting system
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cost allocation
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assighnment of indirect costs to a particular cost object
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cost assignment
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general term that emnompasses both tracing accumulated costs that have a direct relationship to a cost object and allocating accumulated costs that have an indirect relationship to a cost object
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cost driver
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a variable, such as the level of activity or voumet that casually affects costs over a given time span
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cost object
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anything for which a measurement of costs is desired
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cost of goods manufactred
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cost of goods brought to completion, whether they were started before or during the current accounting period
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cost tracing
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describes the assighment of direct costs to a particular cost object
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direct costs of a cost object
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costs related to the particular cost object that can be traced to the at object in an economically feasible (cost effective) way
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direct manufacturing labor costs
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include the compensation of all manufacturing labor that can be traced to the cost object (work in process and then finished goods) in an economically feasible way
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direct material costs
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Acquisition of costs of all materials that eventually becom part of the cost object (work in process and then finished goods) and that can be traced to the cost object in an economically feasible way
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direct material inventory
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direct materials in stock and awaiting use in the manufacturing process
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factory overhead costs
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(indirect manufacturing costs) All manufacturing costs that are related to the cost object (work in process and then finished goods)but that cannot be traced to that object in an economically feasible way.
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finished goods inventory
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goods completed but not yet sold
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fixed cost
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cost that remains unchanged in total for a given time period despite wide changes in the related activity in total activity or volume
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idle time
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wages paid for unproductive time caused by lack of orders, machine breakdowns, material shortages, poor scheduling and the like
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indirect costs of a cost object
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costs related to the particular cost object that cannot be traced to that object in an economically feasible way
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indirect manufacturing costs
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all manufacturing costs that are related to the cost object (work in process and then finished goods) but that cannot be traced to that cost object in an economically feasible way (also called manufacturing overhead costs and factory overhead costs)
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inventoriable costs
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all costs of a product that are considered as assets in the balance sheet when they are incurred and that become cost of goods sold only when the product is sold
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manufacturing overhead costs
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(indirect manufacturing costs)all manufacturing costs that are related to the cost object (work in process and then finished goods) but that cannot be traced to that cost object in an economically feasible way
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manufactring sector companies
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companies that purchase materials and componets and convert them into various finished goods
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merchandising sector companies
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Companies that purchase and then sell tangible products without changing their basic form
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operating income
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total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)
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overtime premium
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Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straightime rates)
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period costs
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all costs in the income statemnt other than costs of goods sold
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prime costs
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all direct manufacturing costs
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product cost
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sum of the costs assigned to a product for a specific purpose
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relevant range
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band of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question
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revenues
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inflows of assets (usually cash or accounts receivable) received for products or services provided to customers
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service sector companies
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companies that provide services or ingtangible products to their customers
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unit cost
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cost computed by dividing total cost by the number of units (also called average cost)
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variable cost
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cost that changes in total in proportion to changes in the related level of total activity or volume
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work in process inventory
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goods partially worked but not yet completed
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