Chapter 2/3

Question 1

Value Chain

Answer 1

R/D, Design, Production/Purchases, Marketing, Distribution, Customer services

Question 2

Cost Object

Answer 2

Anything that you want to know the cost of

Question 3

Period cost

Answer 3

Every other section of Value chain

Question 4

Product cost

Answer 4

Includes only the Product and purchases of the value chain

Question 5

Product costs for Manufacturing

Answer 5

DM, DL, and MOH

Question 6

Prime cost

Answer 6

DM+DL

Question 7

Converesion cost

Answer 7

DL + MOH

Question 8

Where do DM, DL, MOH go on the income statements?

Answer 8

Labeled as C.O.G.S. on the balance sheet’s inventory

Question 9

Where do period costs go?

Answer 9

Straight into the income statement

Question 10

Income statement for merch/manu comp

Answer 10

Rev-C.O.G.S.= Gross Profit

Gross Pofit- Operating Ex= Operating Income

Question 11

Service comp income statement

Answer 11

Rev- Operating Expensive= Operating income

Question 12

What would the operating expense include?

Answer 12

Period Costs

Question 13

Flow of inventory Merch company

Answer 13

Beg Inv + Purchases - C.O.G.S. = Ending Inventory

Question 14

Raw Material Formula

Answer 14

Beg RM+ purchases -DM used = Ending RM

Question 15

WIP formula

Answer 15

Beg WIP + DM/DL/MOH- C.O.G.M.= Ending WIP

Question 16

Finished Good

Answer 16

Beg FG + C.O.G.M. - C.O.G.S. = Ending

Question 17

Gross profit formula

Answer 17

REV-COGS=GP

Question 18

Fixed Cost in Total

Answer 18

Remains constant

Question 19

Variable Cost in Total

Answer 19

Changes directly

Question 20

Fixed Cost per Unit

Answer 20

Changes indirectly

Question 21

Variable Cost per Unit

Answer 21

Remains constant

Question 22

Stock inventory

Answer 22

Stock of what a company sells on a regular basis

Question 23

Production schedule

Answer 23

Indicates the quantity and types of inventory

Question 24

Bill of materials

Answer 24

Losts all of the raw material needed to manufacture the job

Question 25

Raw material record

Answer 25

Detailed information about each stock item

Question 26

Purchase order

Answer 26

Sent to suppliers for any needed part

Question 27

Recieving report

Answer 27

Where all incoming raw materials are recorded

Question 28

Job cost record

Answer 28

Keeps track of all the direct materials and direct labor used on the job

Question 29

Material requisition

Answer 29

Document itemizing the materials currently needed from the store room

Question 30

Labor time records

Answer 30

Records the time spent by each employee on each job they’ve worked on

Question 31

Process costing

Answer 31

Identical product ls made in large batches in an uniform process

Question 32

Job costing

Answer 32

Unique products, smaller batches, differing procedures

Question 33

Steps for MOH job costing

Answer 33

1. Estimate total MOH
2. A.b.
3. Divide step 1 by 2
4. Predetimined MOH X a.b. rate

Question 34

Formula to find If it is under or over allocated

Answer 34

(Est. MOH/ Est. A.B.) -Actual MOH