Chapter 9-10 Vocab

Question 1

The total cost of products manufactured during the period.

Answer 1

Cost of goods manufactured

Question 2

A variance that indicates the difference in material cost due to change in the amount paid to purchase materials.

Answer 2

Direct materials price variance

Question 3

The estimated amount of overhead divided by the estimated amount of cost driver; used to apply overhead to work-in-process.

Answer 3

Predetermined overhead rate

Question 4

The dollar amount of receivables the company expects to eventually collect after making allowances for estimated uncollectable accounts.

Answer 4

Net receivable value

Question 5

A cost flow assumption where costs are charged to Cost of Goods Sold in reverse chronological order.

Answer 5

Last-in, First-out (LIFO)

Question 6

The difference between the standard and actual amounts of input.

Answer 6

Variance

Question 7

The amount of overhead incurred during the period.

Answer 7

Actual manufacturing overhead

Question 8

A variance that indicates the difference in revenue due to a change in selling price.

Answer 8

Sales price variance

Question 9

The amount of overhead applied to products is greater than the actual amount of overhead.

Answer 9

Overapplied overhead

Question 10

A variance that indicates the difference in labor cost due to a change in the number of hours worked per unit produced.

Answer 10

Direct labor usage variance

Question 11

The amount of overhead applied to production that is less than the actual amount of overhead incurred.

Answer 11

Underapplied overhead

Question 12

An account that represents the costs incurred to purchase and receive direct materials.

Answer 12

Direct Materials Inventory

Question 13

A variance that indicates the difference in materials cost due to a change in the amount of materials used per unit produced.

Answer 13

Direct materials usage variance

Question 14

A variance that indicates the difference in direct material cost due to purchasing a different quantity of materials than what was used.

Answer 14

Direct materials inventory variance

Question 15

A temporary account used to reflect the indirect manufacturing costs of the period.

Answer 15

Manufacturing overhead

Question 16

An account that represents the costs of products completed but not yet sold.

Answer 16

Finished Goods Inventory

Question 17

The amount of overhead applied to work-in-process during the period.

Answer 17

Applied manufacturing overhead

Question 18

A temporary account used to record cash discounts taken by customers.

Answer 18

Sales Discount

Question 19

A variance that indicates the difference in revenue due to a change in sales volume.

Answer 19

Sales quantity variance

Question 20

A temporary account that represents the returns by customers and price allowances granted to customers.

Answer 20

Sales Returns and Allowances

Question 21

An account that represents the cost of products started but not completed.

Answer 21

Work-in-Process Inventory

Question 22

A system for assigning costs to cost objects.

Answer 22

Activity-based costing (ABC)

Question 23

A report showing changes that occurred in the Raw Materials Inventory and Work-in-Process Inventory accounts.

Answer 23

Cost of goods manufactured report

Question 24

A group of costs that change in response to the same cost driver.

Answer 24

Cost pool

Question 25

A costing system where the price paid for an item is specifically identified with the item and expensed when the item is sold.

Answer 25

Specific identification method

Question 26

A costing system in which all production costs are applied to the products manufactured during the period.

Answer 26

Full-absorption costing

Question 27

A variance that indicates the difference in labor cost due to a change in the average wage rate paid to direct labor.

Answer 27

Direct labor price variance

Question 28

A cost flow assumption where costs are charged to Cost of Goods Sold in chronological order.

Answer 28

First-in, First-out (FIFO)