ch3 vocab Flashcards
bill of materials
a list of all of the raw materials needed to manufacture a job
bill rate
the labor rate charged to the customer, which includes both cost and profit components
cost driver
the primary factor that causes a cost
cost-plus pricing
a pricing approach in which the company adds a desired level of profit to the product’s cost
job cost record
a written/elec document that lists the direct materials, direct labor, and manufacturing overhead costs assigned to each individual job
job costing
a system for assigning costs to products or services that differ in the amount of materials, labor, and overhead required. Typically used by manufacturers that produce unique, or custom-ordered products in small batches
invoice
bill from a supplier
labor time record
a written/elec document that identifies the employee, the amount of time spent on a particular job, and the labor cost charged to a job
materials requisition
a written/elec document that requests specific materials be transferred from the raw materials inventory storeroom to the production floor
overallocated manufacturing overhead
the amount of manufacturing overhead allocated to jobs is more than the amount of manufacturing overhead costs actually incurred; overcosted
pick
storeroom workers remove items from raw materials inventory that are needed by production
predetermined manufacturing overhead rate
the rate used to allocate manufacturing overhead to individual jobs; calculated before the year begins.
process costing
a system for assigning costs to a large number of identical units that typically pass through a series of uniform production steps.
production schedule
a written/elec document indicating the quality and types of inventory that will be manufactured during a specified time frame
purchase order
a written/elec document authorizing the purchase of specific raw materials from a specific supplier
