Study sets, textbooks, questions
Upgrade to remove ads
Managerial Accounting CH. 2
Terms in this set (42)
To assign an indirect cost to a cost object.
To attach a cost to a cost object.
The total cost divided by the number of units.
Costs that can be influenced or changed by management.
The combination of direct labor and manufacturing overhead costs.
Anything for which managers want a separate measurement of costs.
Cost of Goods Manufactured
The cost of manufacturing the goods that were finished during the period.
Support provided for customers after the sale.
Detailed engineering of products and services and the processes for producing them.
The difference in cost between two alternatives courses of action.
A cost that can be traced to a cost object.
The cost of compensating employees who physically convert raw materials into the company's products; labor costs that are directly traceable to the finished product.
Primary raw materials that become a physical part of a finished product and whose costs are traceable to the finished product.
Delivery of products or services to customers.
Finished Goods Inventory
Completed goods that have not yet been sold.
Costs that stay constant in total despite wide changes in volume.
The unfortunate practice of overstating a company's commitment to sustainability.
A cost that relates to the cost object but cannot be traced to it.
Labor costs that are difficult to trace to specific products.
Materials whose costs are difficult to trace to specific products.
Inventoriable Product Costs
All costs of a product that GAAP requires companies to treat as an asset (inventory) for external financial reporting. These costs are not expensed until the product is sold.
A company that uses labor, plant, and equipment to convert raw materials into new finished products.
All manufacturing costs other than direct materials and direct labor; also called factory overhead and indirect manufacturing cost.
The cost of producing one more unit.
Promotion and advertising of products or services.
A company that resells tangible products previously bought from suppliers.
Earnings generated from the company's primary ongoing operations; the company's earnings before interest and taxes.
Other Indirect Manufacturing Costs
All manufacturing overhead costs aside from indirect materials and indirect labor.
Costs that are expensed in the period in which they are incurred; often called operating expenses or selling, general, and administrative expenses.
The combination of direct material and direct labor costs.
Production or Purchases
Resources used to produce a product or service, or to purchase finished merchandise intended for resale.
Raw Materials Inventory
All raw materials (direct materials and indirect materials) not yet used in manufacturing.
Research and Development (R&D)
Researching and developing new or improved products or services or the processes for producing them.
Merchandising company that sells to consumers.
A company that sells intangible services rather than tangible products.
A cost that has already been incurred.
The cost of all resources used throughout the value chain.
Costs that cannot be changed or influenced in the short run by management.
The activities that add value to a firm's products and services; includes R&D, design, production or purchases, marketing, distribution, and customer service.
Costs that change in total in direct proportion to changes in volume.
Merchandising companies that buy in bulk from manufacturers, mark up the prices, and then sell those products to retailers.
Work in Process Inventory
Goods that are partway through the manufacturing process but not yet complete.
Recommended textbook explanations
Glencoe Accounting: First Year Course
Bradford D. Jordan, Randolph W. Westerfield, Stephen A. Ross
Charles T. Horngren, Walter T Harrison, Walter T. Harrison Jr.
Don Herrmann, J. David Spiceland, Wayne Thomas
Sets with similar terms
Managerial Accounting Chapter 2
Managerial Accounting Chapter 16
ACCT Chapter 16
Other sets by this creator
CH 10: Gifting Strategies
CH 9: Income Taxation of Trusts, Estates, and Bene…
CH 8: Trusts
CH 7: Incapacity Planning