Chapter 9-10 Vocab Flashcards
The total cost of products manufactured during the period.
Cost of goods manufactured
A variance that indicates the difference in material cost due to change in the amount paid to purchase materials.
Direct materials price variance
The estimated amount of overhead divided by the estimated amount of cost driver; used to apply overhead to work-in-process.
Predetermined overhead rate
The dollar amount of receivables the company expects to eventually collect after making allowances for estimated uncollectable accounts.
Net receivable value
A cost flow assumption where costs are charged to Cost of Goods Sold in reverse chronological order.
Last-in, First-out (LIFO)
The difference between the standard and actual amounts of input.
Variance
The amount of overhead incurred during the period.
Actual manufacturing overhead
A variance that indicates the difference in revenue due to a change in selling price.
Sales price variance
The amount of overhead applied to products is greater than the actual amount of overhead.
Overapplied overhead
A variance that indicates the difference in labor cost due to a change in the number of hours worked per unit produced.
Direct labor usage variance
The amount of overhead applied to production that is less than the actual amount of overhead incurred.
Underapplied overhead
An account that represents the costs incurred to purchase and receive direct materials.
Direct Materials Inventory
A variance that indicates the difference in materials cost due to a change in the amount of materials used per unit produced.
Direct materials usage variance
A variance that indicates the difference in direct material cost due to purchasing a different quantity of materials than what was used.
Direct materials inventory variance
A temporary account used to reflect the indirect manufacturing costs of the period.
Manufacturing overhead
An account that represents the costs of products completed but not yet sold.
Finished Goods Inventory
The amount of overhead applied to work-in-process during the period.
Applied manufacturing overhead
A temporary account used to record cash discounts taken by customers.
Sales Discount
A variance that indicates the difference in revenue due to a change in sales volume.
Sales quantity variance
A temporary account that represents the returns by customers and price allowances granted to customers.
Sales Returns and Allowances
An account that represents the cost of products started but not completed.
Work-in-Process Inventory
A system for assigning costs to cost objects.
Activity-based costing (ABC)
A report showing changes that occurred in the Raw Materials Inventory and Work-in-Process Inventory accounts.
Cost of goods manufactured report
A group of costs that change in response to the same cost driver.
Cost pool
A costing system where the price paid for an item is specifically identified with the item and expensed when the item is sold.
Specific identification method
A costing system in which all production costs are applied to the products manufactured during the period.
Full-absorption costing
A variance that indicates the difference in labor cost due to a change in the average wage rate paid to direct labor.
Direct labor price variance
A cost flow assumption where costs are charged to Cost of Goods Sold in chronological order.
First-in, First-out (FIFO)
