MA Flashcards
Are any expenses that change based on how much a company produces and sells.
Variable cost
Is an expense that does not change when sales or production volumes increases or decreases and remain constant.
Fixed cost
Cost has both variables and fixed components
Mixed cost
All cost involved in acquiring or making a product
Product cost
All cost that are incurred to secure customer orders and get finished goods product to the customer.
Selling cost
is anything for which cost data are desired- including products, customers and organizational subunits.
Cost object
is a cost that cannot be easily and conveniently traced to a specified
Er. Rent, Utilities, Greseal affice expenses
cost object.
Indirect cost
is a cost that can be easily and conveniently traced to a specified
Ex. Direct labor, Materials, Supplies
cost object.
Direct cost
-is a cost that incurred to support a number of cost object but cannot be traced to them individually.
Common cost
is the sum of direct materials cost and direct labor cost.
Prime cost
are raw materials, such as the sold used to make electrical connections in a Samsung HDTV
Indirect materials
the sum of costs of all resources consumed in the process of making a product.
Manufacturing cost
the materials that go into the final product usually called raw matcrials.
Direct materials
refers to employees, such as janitors, supervisors, materials handles maintenance workers, and night security guards, that play an essential role in running.
Indirect labor
Consists of labor costs that can be easily traced to individual units of product.
Direct labor
include all costs associated with the general management of an organization rather than with manufacturing or selling.
Administrative cost
Because product costs are initially assigned to inventories, they are also known as
Inventoriable cost
are all the costs that are not product costs.
Period cost
consist of completed units of product that have not yet been sold to customers.
Finished goods
consists of units of product that are only partially complete and will require further work before they are ready for sale to the customer.
Work in progress
ASSIGNING COSTS TO COST OBJECT(2)
Direct Cost
Indirect Cost
ACCOUNTING FOR COST IN MANUFACTURING (7)
Manufacturing cost
Direct materials
Direct labor
Manufacturing overhead
Non-manufacturing
Selling cost
Administrative cost
PREPARING FINANCIAL STATEMENT(2)
Product cost
Period cost
PREDICTING COST BEHAVIOR (3)
Variable cost
Fixed cost
Mixed cost
MAKING DECISION (3)
Differential cost
Sunk cost
Opportunity cost
is used in situations where many different products, each with individual and unique features, are produced each period.
Job order costing
is a document that list the quantity of each type of materials needed to complete a unit product.
Bill of materials
- is a document that specifies the type, and quantity of materials to be drawn from the storeroom and identifies the job that will be charged for the cost of material.
Material Requisition form
- records the materials, labor and manufacturing overhead cost charged to specific job.
Job Cost Sheet
is an hour by hour summary of employces activity through out the day
Time ticket
-is a measure such as DL Hours or Machine tours that is used to assign of casts to products i services.
Allocating base
