Chapter 6 Flashcards
Cost management system
Provides information about the costs of the goods and services sold by the firm and the processes used to produce the goods and services
Predetermined overhead rate
Estimated overhead/estimated allocation base; Cost per unit of the allocation base used to charge overhead products
Two-stage cost allocation
Process of first allocating costs to intermediate cost pools and then to the individual cost objects using different allocation bases
Job
Unit of a product that is easily distinguishable from other units (individual units or small groups of units)
Job costing
An accounting system that records costs and revenues for each job
Process costing
An accounting system is used when identical units are produced through uniform production steps
Continuous flow processing
A process system that generally mass-produces a single, homogeneous product in a continuing process
Operations costing
A hybrid of job and process costing
Operation
A standardized method of making a product that is performed repeatedly in production
