5 Written questions
5 Matching questions
- Work in process
- Overapplied overhead
- first in, first out (FIFO) process costing
- Operating profit
- Special order
- a inventory method whereby the first goods received are the first one charged out when sold or transferred. keeps the costs and the work separate and, in effect, computes separate unit costs for the two periods
- b excess of operating revenues over the operating costs necessary to generate those revenues.
- c product in the production process but not yet complete
- d excess of applied overhead costs incurred over actual overhead during a period.
- e order that will not affect other sales and is usually a short run occurrences
5 Multiple choice questions
- sum of direct labor and manufacturing overhead
- costs added to inventory accounts.
- sum of all costs of manufacturing and selling a unit of product (includes both fixed and variable costs)
- account that records financial transactions for a specific customer, vendor or job
- revenue minus cost of goods sold on income statements. Per unit, the gross margin equals sales price minus full absorption cost per unit.
5 True/False questions
Throughout contribution → sales dollars minus direct materials costs and variables such as energy and piecework labor
operating budgets → budgeted income statement, production budget, budgeted cost of goods sold, and supporting budgets.
spending (budget) variance → price variance for fixed overhead
total cost variance → difference between the actual revenue and actual units sold multiplied by budgeted selling price.
Cost management system → system to provide information about the costs of process, products, and services used and produced by an organization.