Exam 2 Flashcards
1
Q
Cost distortion
A
Occurs when some costs are over costed and others are under costed by the cost allocation
2
Q
Plant wide overhead rate
A
Rate for every department is the same
3
Q
Department overhead rate
A
Different rate for every department
4
Q
Unit level activities
A
Spend cost for each and every individual unit
5
Q
Batch level activities
A
Spend for each batch
6
Q
Product level activities
A
Spend for each product line
7
Q
Prevention cost
A
Avoiding poor quality
8
Q
Appraisal cost
A
Detect poor quality goods
9
Q
Internal failure
A
Fixing or disposing of poor quality goods
10
Q
External failure
A
Fix poor quality goods after theyve already been delivered to customers
