Chapter 5 Accounting
Order by
16 terms
Terms | Definitions |
|---|---|
 Job costing | a costing system that accumulates, tracks, and assigns costs for each job produced by a company |
| Process costing | a costing system that accumulates and tracks costs for each process performed and then assigns those costs equally to each unit produced |
| Operations costing | a hybrid of job and process costing; used by companies that make products in batches |
| Normal spoilage | spoilage resulting from the regular operations of the production process |
| Abnormal spoilage | spoilage resulting from unusual circumstances, including improper handling, poorly trained employees, faulty equipment, and so on |
| Fringe benefits | payroll costs in addition to the basic hourly wage |
| Idle time | worker time that is not used in the production of the finished product |
| Overtime premium | an additional amount added to the basic hourly wage owing to overtime worked by the workers |
| Allocation | the process of finding a logical method of assigning overhead costs to the products or services a company produces or provides |
| Cost drivers | factors that cause, or drive, the incurrence of costs |
| Cost pools | groups of overhead costs that are similar; used to simplify the task of assigning costs to products using ABC costing |
| Normal costing | a method of costing using an estimate of overhead and predetermined overhead rates instead of the actual amount of overhead |
| Predetermined overhead rates | used to apply overhead to products; calculated by dividing the estimated overhead for a cost pool by the estimated units of the cost driver |
| Overapplied overhead | the amount of applied overhead in excess of actual overhead |
| Underapplied overhead | the amount of actual overhead in excess of applied overhead |
| Equivalent units | the number of finished units that can be made from the materials, labor, and overhead included in partially completed units |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.