5 Written questions
5 Matching questions
- Normal cost
- Engineering estimate
- flexible budget line
- Account analysis
- a unit of a product that is easily distinguishable from another units
- b cost estimate based on measurement and pricing of the work involved in a task
- c cost estimation method that calls for a review of each account making up the total cost being analyzed
- d expected monthly costs at different output levels.
- e cost of job determined by actual direct material and labor cost plus overhead applied using a predetermined rate and an actual allocation base
5 Multiple choice questions
- a past, present, or future cash flow.
- standardized method or technique that is repetitively performed
- costs are collected for each unit produced. Process costing accumulates costs in a department for an accounting period and then spreads them evenly, or on an average basis, over all units produced that period. process costing assumes that each unit produced is relatively uniform.
- 1)identify the activities 2)identify the cost drivers associated with each activity 3)compute a cost rate per driver unit or transaction 4)assign costs to products by multiplying the cost driver rate by the volume of cost driver units consumed by the product.
- contribution margin per unit of a particular input with limited availability
5 True/False questions
operating budgets → excess of operating revenues over the operating costs necessary to generate those revenues.
cost driver → collection of costs to be assigned in the cost objects
Full absorption cost → all variable and fixed manufacturing costs; used to compute a product's inventory value under GAAP
Cost allocation rule → factor that causes, or "drives" an activity's costs
profit variance analysis → analysis of the causes of differences between budgeted profits and the actual profits earned.