cost accounting & performance management Flashcards
for purposes of allocating JC to J products , the sales price at point of sale, reduced by cost to complete after split off
Net Sales Value at Split off point
allocating Joint cost to joint products the sales price at point of sale reduced by cost to complete after split off is assumed to be equal to
sales value at split off point
Joint Costs assigned to a product if costs are assigned using the NRV
Sale - Separable Costs = NRV
Activity based costing divides the production process into activitities where cost are accumulated
the production process assumes activities consume resources
in an activity based costing system, what should be used to assign a department’s manufacturing overhead costs to products produced in varying lot sizes
multiple cause and effects relationships
Activity-based costing assigns costs to activities or santractions and allocates them to products according to their use of each activity t
this method means multiple cause and effect relationships
multiple or departamental overhead rates are considered preferable to single or plant wide o/h rates
when various products are manufactured that do not pass through the same departments or use the same manufacturing techniques
multiple or departamental overhead rates are considered preferable to single or plant wide o/h rates
when various products are manufactured that do not pass through the same departments or use the same manufacturing techniques
ABC refines product cost information becasuse the cost system
emplasizes long term product analyasis (when fixed costs become variable costs
ABC refines product cost information because the cost system
emphasize long term product analysis (when fixed costs become variable costs
each should be considered in the selection of appropriate cost drivers for ABC
Cost of Measurement
Degree of Correlation
Behavioral effects
Volume based production is a hallmark of
Traditional Costing where the volume alone is the essential driver of how costs are allocated.
Performance reports should include
excptional items that are controllable, user focus, specific time horizon
Critical success factors identified in the balanced scorecard generally include
financial, internal business processes, customer, and human resource consideration
Critical success factors identified in the balanced scorecard generally include
financial, internal business processes, customer, and human resource consideration
Controllable margin is computed as contribution margin net of controllable costs
Controllable costs represent those fixed costs that managers can impact in lass than one year.
financial and non financial features of an organization
that contribute to its success in achieving strategy are referred to as critical success factors and are classified as
an increase in conformance costs resulted in a higher quality product
therefore in a decrease in non-conformance costs
an increase in conformance costs(Prevention & Appraisal) resulted
in a higher quality product and a decresed in non-conformace costs(Internal and external failure)
an increase in conformance costs(Prevention & Appraisal) resulted
in a higher quality product and a decreased in non-conformance costs(Internal and external failure)
rework
is an internal failure cost
Maintenance is a
prevention cost
inspection
is a prevention cost
Product recall
is an external failure
