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41 Cards in this Set
- Front
- Back
Administrative Costs
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All excecutive, organizationla, and clerical costs associated with the general management of an organization rather than with manufacturing, marketing, or selling.
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Budget
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A detailed plan for th future, usually expressed in formal quantitative terms.
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Common Cost
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A cost that is incurred to support a number of cost objects but cannot be traced to them individually. (Wage of a plane pilot is common cost to all passengers)
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Control
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The process of instituting procedures and obtaiing feedback to ensure that all parts of the organization are functioning effectively and moving toward overall company goals.
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Controlling
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Ensuring that the plan is actually carried out and is appropriatly modified as circumstances change.
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Conversion Cost
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Direct labor cost plus manufacturing overhead cost.
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Cost Behavior
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The way in which a cost reacts to changes in the level of activity.
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Cost object
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Anything for which cost data are desired. Examples of possible costs objects are products, product lines, customers, jobs, etc.
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Cost of goods manufactured
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The manufacturing costs associated with the goods that werefinished during the period.
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Differential Cost
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A difference in cost between any two alternatives.
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Differential revenue
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A difference in revenue between two alternatives
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Direct Cost
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A cost that can be easily and conveniently traced to a specific cost object.
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Direct Labor
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Labor costs that can be easily traced to individual unito of product
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Direct Materials
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Materials that become an in tegral part of a finished product and whose costs can be conveniently traced to it.
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Directing and Motivating
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Mobilizing people to carry out plans and run routine operations
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Feedback
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Accounting and other reports that help mangers montor performance and focus on problems and/or opportunites
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Financial Accounting
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The phase of accoutning concerned with providing information to stockholders, creditors, and other outised the organization.
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Finished Goods
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Units of product that have been completed but have not yet been sold to customers
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Fixed Cost
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A cost that remains constant, in total, regardless of changes int he level of activity with in the releveant range. (ex. rent)
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Incremental Cost
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An intreas in cost between two alternatives.
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Indirect Cost
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A cost that cannot be easily and conveniently traced to a specific cost object.
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Indirect Labor
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The labor costs of janitors, supervisors, material handlers, and other factory workers that cannot be conveniently traced directly to particular producs
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Indirect Materials
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Small items of material such as glue and nails. Costs cannot be convieniently traced.
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Inventoriable Costs
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Product Costs
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Mangerial Accounting
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The phase of accounting concerned with providing information to managers for use in planning an controlling operations and in decision making.
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Manufacturing overhead
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all costs associated with manufacuring except direct materials and direct labor.
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Opportunity Cost
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A potential benefit that is given up with one alternative is lselcted over another
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Performance report
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A detailed report comparing budgeted data to actual data.
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Period Costs
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Costs that are teken directly to the income statement as expnses in the period in wihd tey are incurred or accrued.
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Planning
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Selection a course of actiona nd specifying how the action will be implemented.
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Planning and Controlling Cycle
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The flow of management activites through planning, direction and motivation, and controlling, then back to planning again.
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Prime Cost
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Direct materials cost pluse direct labor cost.
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Product Costs
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All costs that are involved in the the purchase or manufacture of goods. (Direct Materials + Direct Labor+ Manufacturing Overhead)
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Raw materials
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Materials that are used to make a product.
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Relevant Range
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The range of activity within which assumptions about variable and fixed cost behavior are valid.
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Scheduel of cost of goods manufactured
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A schedule showing the direct materials, driect labor, and MO, costs incurred during a period and the portion fo those costs assigned to Work in Progress and Finished Goods
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Segment
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Any part of an org. that can be evaluation independently of other parts and about wich the manager seeks financial data. (product line, sales territory, etc)
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Selling Costs
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All costs necessary to secure customer orders and get hte finished product or service ion the hands of the customer.
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Sunk Cost
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A cost that has alread been incurred and that cannot be changed by any decsion made now or in the future.
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Variable Cost
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A cost that varies, in total, in driect proportion to changes in the level of activity.
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Work in process
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Units of product that are only partially complete and will require further work before they are ready for sale to a customer.
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