Create an account
all executive, organization, and clerical costs associated with the general management of an organization rather than with manufacturing or selling; a nonmanufacturing/period cost; i.e. executive compensation, general acct, secretarial, public relations
cost of goods manufactured
the manufacturing costs associated with the goods that were finished during the period; need to adjust total manufacturing cost with cost for partially completed goods - work in process
small items of material such as glue and nails that may be an integral part of a finished product, but whose costs cannot be easily or conveniently traced to it
synonym for product costs; costs go directly into inventory acct as they are incurred and remain as assets if goods are only partially completed or are unsold at end of period
all manufacturing costs except direct materials and direct labor; i.e. indirect manufacturing costs, maintenance and reparis on production equipment, property taxes, depreciation, insurance on manufacturing facilities
costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued; i.e. sales commissions, rental costs of admin offices
all costs that are involved in acquiring or making a product; in the case of manufactured goods, they consist of direct materials, direct labor, and manufacturing overhead
schedule of cost of goods manufactured
a schedule showing the direct materials, direct labor, and manufacutring overhead costs incurred during a period and the portion of those costs that are assigned to Work in Process and Finished Goods
all costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer; i.e. advertising, shipping, sales travel, sales commissions, sales salaries, costs of finished goods warehouses
materials that become an integral part of a finished product and whose costs can be conveniently traced to it
cost of goods sold in merchandising company
beg merchandise inventory + purchases - end merchandise inventory
cost of goods sold in manufacturing company
beg finished goods inventory + cost of goods manufactured - end finished goods inventory
a cost that varies, in total, in direct proportion to changes in the level of activity; this cost is constant per unit
a cost that remains constsant, in total, regardless of changes in the level of activity within the relevant range; thsi cost varies inversely with the level of activity on a per unit basis
a cost that is incurred to support a number of cost objects but cannot be traced to them individually; a type of indirect cost
a difference in cost between 2 alternatives; the only cost that is relevant in a decision
anything for which cost data are desired; i.e. products, customers, jobs, parts of org such as deparments/divisions
the potential benefit that is given up when one alternative is selected over another
a cost that has already been incurred and that cannot be changed by an decision made now or in the future; should be ignored in decision making
costs that are incurred to identify defective products before the products are shipped to customers
external failure costs
costs that are incurred when a product or service that is defective is delievered to a customer
internal failure costs
costs that are incurred as a result of identifying defective products before they are shipped to customers
ISO 9000 standards
quality control requirements issued by the International Organization for Standardization that relate to products sold in European countries
small groups of employees that meet on a regular basis to discuss ways of improving quality
costs that re incurred to prevent defective products from falling into the hands of customers or that are incurre as a result of defective units
quality cost report
a report that details prevention costs, appraisal costs, and the costsz of internal and external failures
quality of conformance
the degree to which a product or service meets or exceeds its design specifications and is free of defects or other problems that mar its appearance or degrade its performance
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