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16 Cards in this Set
- Front
- Back
since overhead costs are indirect costs, |
they require some process of allocation |
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cost allocation is the assignment of (blank) costs to one or more products using a reasonable basis |
indirect |
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an actual cost system differs from a normal cost system in that an actual cost system |
assigns overhead at the end of the manufacturing process |
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in a normal cost system, which of the following is used? 1. annual DM 2. annual DL 3. annual OVHD |
annual DM and annual DL |
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redetermined overhead rates are computed based on |
estimated overhead costs and estimated level of activity |
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a mixed cost has what components |
variable and fixed |
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in the formula y= a + bX, y represents |
total costs |
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in the formula y= a + bX, a represents |
fixed costs |
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in relationship to changes in activity, variable overhead changes |
in total not per unit |
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in relationship to changes in activity, fixed overhead changes |
per unit |
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if the level of activity increases |
total cost will increase and fixed cost per unit will decrease |
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if there is no "a" value in a linear cost equation, this is an indication that the cost is |
variable |
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applied overhead consists of |
actual activity times predetermined overhead rate |
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if a company used two overhead accounts (actual overhead and applied overhead), the one that would receive the most debits would be |
actual overhead |
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if underapplied overhead is considered to be immaterial, it is closed to what account |
cost of goods sold |
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overapplied overhead will result if |
overhead costs incurred were less than overhead costs charged to production |