Exam 2 Review Flashcards
job costing
assigning costs to unique products
process costing
accumulate cost by production process
activity based costing
assigns costs based on specific cost drivers/ activities
cost plus pricing
charging a percentage above cost of g/s
time driven activity based costing
allocates cost to how long it takes an employee to perform a certain activity
predetermined overhead rate
estimated total costs / estimated allocation base
allocation base
the cost object that is sed to drive overhead distribution
over applied overhead
when more over head is applied that necessary to inventory
under applied overhead
when too little overhead is applied to inventory
single-stage cost allocations
using a single allocation base to apply overhead
two-stage cost allocation
allocating cost to a cost pool then cost objects
direct method
allocate support department costs to production department
stepdown method
reciprocal method
physical units method
sales value at split off method
net realizable value method
constant gross margin method
