Terms in this set (42)
Reports are usually prepared quarterly and annually
Information is verified by external auditors
Main characteristic of information is that is must be relevant
Reports tend to be prepared for the parts of the organization rather than whole
Primary users are internal (i.e., company managers)
It is governed by Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).
The primary characteristics of information are that it must be reliable and objective.
Reports are prepared as needed.
it is not governed by legal requirements
Reporting is based mainly on the company as a whole.
Junior Department sales clerks
Cost of Juniors clothing
Cost of hangers used to display the clothing in the store
Cost of radio advertising for the store
Juniors clothing buyers' salaries (these buyers buy for all the Juniors Departments of Kohl's stores)
Cost of bags used to package customer purchases at the main registers for the store
The Stow Kohl's store manager's salary
Cost of the security staff at the Stow store
Wages and benefits paid to assembly-line workers in the manufacturing plant
Depreciation on automated production equipment
Salaries paid to quality control inspectors in the plant
Repairs and maintenance on factory equipment
product cost (MOH)
Standard packaging materials used to package individual units of product for
sale (for example, cereal boxes in which cereal is packaged)
product cost (DM)
Lease payment on administrative headquarters
telecommunications cost for the customer service call center
Predetermined Overhead Rate
EST. MOH Cost/ EST. DL COST
predetermined MOH rate * actual direct labor cost
POHR x Actual Cost Driver
When work-in-process inventories increase during the period (the ending balance is greater than the beginning balance), what can be said of the relationship between total manufacturing costs and the cost of goods manufactured? (Assume no change in per unit costs.)
Total Manufacturing Costs are greater than the Cost of Goods To Manufactured
Actual and normal costing are similar in their accounting for
direct material and direct labor costs.
A job costing system can be used by which types of companies?
Service, manufacturing, and merchandising businesses
If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then
Cost of Goods Sold on the income statement should be decreased.
Manufacturing overhead is underallocated if the amount
allocated during the period is less than the actual amount incurred.
Compared to a unit-based cost system (i.e. plantwide) an ABC cost system will improve costing accuracy when:
non-unit-level costs are a high proportion of total overhead cost.
the firm produces highly diverse products
overhead is a significant portion of total costs.
Raw Materials Inventory
As the number of units in a batch increases, the cost per unit will generally
Gross Profit Margin
sales - expense
Which of the following cost of quality categories represent the cost incurred to detect poor quality goods or services prior to consumer delivery in the marketplace?
are incurred to determine whether products and services are conforming to
requirements or customer needs. The main objective is to prevent nonconforming goods from
being shipped to customers.