B3-M2 Cost Accounting 2 Flashcards
How to calculate cost of jobs completed (or cost of goods manufactured)?
it equals DM used + DL + OH applied + beg. WIP - end. WIP
what to compare when applying over/underapplied OH?
compare applied OH to actual OH. Overapplied is credit. Underapplied is debit
what is process costing?
a method of allocating production costs to products and services by averaging the cost over the total units produced. costs are usually accumulated by department rather than by job
what is job order costing?
a method of allocating production costs to products and services that are identifiable as separate units and require greater or lesser amounts of work to complete
what is activity-based costing?
a system that accumulates all costs of overhead for each of the activities of the organization and then allocates those activity costs to the cost objects that caused the activity