5 Written questions
5 Matching questions
- Underapplied overhead
- Assigning Costs Using First-in, First-Out (FIFO) Process Costing
- How to make cost information more useful for managers
- Marketing and Administrative costs are treated like
- Normal cost
- a cost of job determined by actual direct material and labor cost plus overhead applied using a predetermined rate and an actual allocation base
- b A disadvantage of weighted average costing is that it mixes current period costs with the costs of product in beginning inventory, making it impossible for managers to know how much it cost to make a product THIS PERIOD.
- c production costs. Variable costs are expected to change as activity changes.
- d excess of actual overhead costs incurred over applied overhead costs
- e full absorption costing, variable costing, and managerial costing
5 Multiple choice questions
- any cost that can be directly (unambiguously) related to a cost object at reasonable cost.
- the basic approach in product costing is to allocate costs in the cost pool to the individual cost objects, which are the products or services of interest. we assign, or allocate, these costs to the individual cost objects by using appropriate cost allocation bases or cost drivers.
- difference between revenues per unit (price) and variable cost per unit
- 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
5 True/False questions
A Cost-Benefit Decision → the choice of whether to use a plantwide rate or departmental rates depends on the products and the production process. If the company manufactures products that are quite similar and that use the same set of resources, the plantwide rate is probably sufficient. if multiple products use the manufacturing facilities in many different ways, departmental rates provide a better picture of the use of manufacturing resources by the different products.
Managerial costing → only variable manufacturing costs are product costs, others are period costs
sales price variance → difference between the actual revenue and actual units sold multiplied by budgeted selling price.
static budget → budget that indicates revenues, costs, and profits for different levels of activity, including the ex post actual activity level
Variance → difference between planned result and actual outcome. Uses this difference to evaluate the performance of individuals and business units and identify possible sources of deviations between budgeted and actual performance.