Long Test 2 Flashcards
A manager that is establishing objectives is performing which management function?
Planning
The term “relevant range” as used in cost Accounting means that range over which
cost relationships are valid
The term “conversion costs” refers to
the sum of direct labor and all factory overhead costs
Does not appear on the balance sheet of a manufacturing company
Cost of goods manufactured
This method draws a straight line through two data points
high-low method
In accumulating raw materials costs, companies debit the cost of raw materials purchased in a perpetual system to
raw materials inventory
Raw materials are assigned to a job when
the materials are issued by the materials storeroom
The wage of a time keeper in the factory would be classified as
indirect cost
In a job order costing system, the net cost of normal spoilage is equal to
the cost of spoiled work minus the estimated disposal value
Deduction that are not levied on the employer
Income taxes witheld
The employer’s portion of SSS premuim is
An expense for the employer
Idle time of factory workers usually charged to
FOH or Factory overhead
Income taxes withheld levied on the
Employee only
Factory workers fringe the benefits
FOH or Factory Overhead
It is a product costing system that is usually used for just-in-time production system since it eliminates the detailed tracking of cost throughout the production system and only prepares journal entries at the specified trigger points
Backflush costing
