Manufacturing Cost Flashcards
When used in products, both electricity and crude oil are classified as what type of cost?
Manufacturing overhead.
In a traditional job order cost system, the issue of indirect materials to a production department increases ?
Factory overhead control.
What is another name for product costs ?
Inventoriable costs or manufacturing costs.
What is another name for period costs?
selling and administrative costs.
What is Marginal Cost or Revenue ?
additional cost or revenue resulting from one more unit of output.
What is Accounting Cost?
explicit costs that are “accounted for,” typically as evidenced by an entry in a fundamental book or accounting record (e.g., the general ledger).
What happen to Average fixed cost as volume increases?
decreases as volume increases (subject to the relevant range)
What happen to Average variable as volume increases?
increases as volume increases (subject to the relevant range)
What is Committed cost ?
Cost which cannot be avoided in the current accounting time period (the opposite of discretionary costs).
What is Discretionary cost?
Cost which may or may not be included in the budget and can be considered avoidable as determined by a decision maker with the authority to do so (opposite of discretionary cost).
