Accounting test 2
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12 terms
Terms | Definitions |
|---|---|
 When a partner is added to a partnership | the previous partnership ends |
| The costs that should be incurred under normal conditions to produce a specific product or component or to perform a specific service are | standard costs |
| The board of directors of a corporation | are responsible for and have final authority for managing corporate activities |
| Expenses that are easily traced and assigned to a specific department because they are incurred for the sole benefit of that department are called | direct expenses |
| Retained earnings | Generally consists of a company's cummulative net income less any net losses and dividends declared since its inception |
| Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called | participating preferred stock |
| Mutual agency means | A partner can commit or bind the partnership in any contract within the scope of the partnership business |
| The process of examining the differences between actual and budgeted costs and describing them in terms of the amounts that resulted from price and quantity differences is called | cost variance analysis |
| Earnings per share | (income available to common stock holders)/ (weighted average of common stock outstanding) |
| Price variance | AQ(AP-SP) |
| Quantity variance | SP(AQ-SQ) |
| Overhead Application Rate | (Total Estimated Manufacturing Overhead) / (Total estimated Cost Driver) |
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