Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Fall 24 > ACCTG 404 Exam 1 > Flashcards

ACCTG 404 Exam 1 Flashcards

1
Q

Activity base

A

measure of whatever causes a variable cost to be incurred

total cost of surgical gloves in a hospital will increase as the number of surgeries increase, number of surgeries is the activity base

direct labor hours or machine hours

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Administrative Costs

A

all executive, organizational, clerical cost associated with general operation

office supplies, utilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Committed Fixed Costs

A

Investments in facilities, equipment, basic organizational structure that are long term

investments that you are committed to long term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Common Cost

A

cost incurred to support a number of cost objects that cannot be traced individually

rent for a building that contains multiple departments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Contribution Approach

A

costs are separated into variable and fixed categories, used to assess profitability of different business segments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Contribution Margin

A

amount remaining from sales revenue after all variable expenses have been deducted

selling price - variable costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

conversion cost

A

direct labor plus manufacturing overhead cost

costs incurred to convert raw materials into finished products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

cost behavior

A

way in which a cost reacts to changes in the level of activity (variable costs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

cost object

A

anything for which cost data is desired

usually entails DM, DL, MOH

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

cost structure

A

relative proportion of fixed, variable, and mixed costs incurred

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

differential cost

A

a future cost that differs between any two alternatives

company deciding between two methods

same as incremental cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

direct cost

A

a cost easily traced to a specified cost object

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

direct labor

A

factory labor costs easily traced to a specific product

wages for factory line workers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

direct materials

A

materials that become an integral part of a finished product and costs are easily traced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

discretionary fixed costs

A

fixed cost that arise from annual decisions by management to spend on certain fixed cost items

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

financial accounting

A

reports historical financial information to external parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

finished goods

A

units of product that have been completed but not yet sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

fixed cost

A

cost remains constant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

indirect cost

A

cost cannot easily be traced to a cost object

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

indirect labor

A

labor costs of workers that cannot easily be traced to particular products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

indirect materials

A

small items of material such as glue and nails that may be integral part of a finished product, not easily traced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

inventoriable (product) costs

A

costs associated with getting a product ready for sale

DM, DL, MOH, expensed as COGS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

managerial accounting

A

provides information to managers for use within the organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

manufacturing overhead

A

all manufacturing costs except direct materials and direct labor

includes indirect costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

mixed cost

A

cost with variable and fixed cost elements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

opportunity cost

A

potential benefit given up when one alternative is selected over another

27
Q

period costs

A

costs taken directly to the income statement as expenses in period incurred

selling and administrative expenses

28
Q

prime costs

A

direct materials plus direct labor

29
Q

raw materials

A

any materials going into the final product

30
Q

relevant benefit

A

benefit that will be directly affected by a specific decision, important in decision making process

31
Q

relevant range

A

range of activity within which assumptions about variable and fixed cost behavior

32
Q

selling costs

A

all costs incurred to secure customer orders

sales commission, advertising expense

33
Q

sunk costs

A

cost already incurred that cannot be changed by any decision made now or in future

34
Q

variable cost

A

cost that varies in direct proportion to changes in activity level

35
Q

work in process

A

partially complete units of product requiring further work before they are ready for sale to the customer

36
Q

absorption costing

A

costing method that includes all manufacturing costs (direct materials, direct labor, manufacturing overhead) in unit product costs

37
Q

allocation base

A

measure of activity used to assign costs to cost objecct

38
Q

bill of materials

A

document showing quantity of each type of direct material required to make a product

estimate of what it takes to build 1 unit of an object

39
Q

cost driver

A

a factor that causes overhead costs

40
Q

cost-plus pricing

A

a predetermined markup is applied to a cost base to determine target selling price

100 * 1.5 = selling price of 150

41
Q

job cost sheet

A

form that records direct materials, direct labor, moh charged to a job

42
Q

job order costing

A

assigns costs to specific jobs that have unique items

used when each project is unique, like construction

specific DL, DM, MOH

43
Q

materials requisition form

A

document specifying the type and quantity of materials to be drawn from the storeroom and the job charged for the cost of those materials

44
Q

multiple predetermined overhead rates

A

costing system with multiple overhead cost pools and a different predetermined overhead rate for each cost pool

45
Q

normal cost system

A

costing system that applies overhead costs to jobs by multiplying a predetermined overhead rate by the actual amount of allocation base incurred by the job

46
Q

overhead application

A

process of assigning overhead cost to specific jobs

47
Q

plantwide overhead rate

A

single predetermined overhead rate used throughout a plant

48
Q

predetermined overhead rate

A

rate used to charge manufacturing overhead cost to jobs that is established in advance of each period

49
Q

cost of goods manufactured

A

manufacturing costs associated with units off product completed during period

50
Q

finished goods

A

unit of product completed but not yet sold to customers

51
Q

overapplied overhead

A

credit balance in MOH that occurs when overhead cost in WIP is greater than overhead cost actually incurred

52
Q

overhead application

A

process of assigning overhead cost to specific jobs

53
Q

schedule of goods manufactured

A

schedule that contains direct materials, direct labor, and MOH

54
Q

schedule of cost of goods sold

A

schedule containing product costs

55
Q

underapplied overhead

A

debit balance in MOH occuring when overhead cost in WIP is less than overhead actually incurred

56
Q

conversion costs

A

direct labor cost plus MOH cost

57
Q

equivalent units

A

product of the number of partially completed units and their percentage of completion with respect to a particular cost

58
Q

Equivalent Units of Production (Weighted Average Method)

A

units transferred to next department (or to finished goods) during period plus equivalent units in departments ending WIP inventory

averages cost of beginning inventory and new production in a period

59
Q

Operation Costing

A

hybrid costing system used when products have common characteristics and some individual characteristics

hybrid of job order costing and process costing

60
Q

Process Costing

A

used when identical products are produced on a continual basis

61
Q

Processing Department

A

work is performed on a product and where materials, labor, and MOH cost are added to product

62
Q

Weighted Average Method

A

calculates unit cost by combining costs and outputs from current and prior periods

63
Q

Key Performance Indicator

A

percentage of production capacity used (EFFICIENCY)

more units in system = more money

64
Q

roll forward analysis

A

tracks changes in an account from one period to the next by rolling forward balance

Fall 24 (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions