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Study sets matching "accounting cost"

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Study sets matching "accounting cost"

15 terms
Cost Accounting
prime cost
cost centre
direct cost
indirect cost
total of direct costs
section of business to which costs can be charged
cost that can be identified with a unit of output
cost that cannot be identified with a unit of output
prime cost
total of direct costs
cost centre
section of business to which costs can be charged
10 terms
Cost Accounting
What is Job Costing?
Contract costing is...
The unit cost of a batch of goods can…
What is Contract costing?
Involves the calculation of costs involved in a construction…
The identification and assignment of costs related to produci…
Dividing the batch cost by the number of units produced.
The tracking of costs associated with a specific contract wit…
What is Job Costing?
Involves the calculation of costs involved in a construction…
Contract costing is...
The identification and assignment of costs related to produci…
83 terms
Cost Accounting
value chain
efficiency
effectiveness
differential revenues and costs
set of activities that transforms raw resources into goods/se…
being able to operate in a cost effective manner
being able to reach customers and have them buy your products
costs/revenues that change in response to a particular course…
value chain
set of activities that transforms raw resources into goods/se…
efficiency
being able to operate in a cost effective manner
Cost Accounting
Value chain
value-added activities
supply chain
distribution chain
set of activities that transforms ra materials into the goods…
activities customers perceive as adding utility to the goods…
providers of the materials and services used
consumers of the product (not always the end user)
Value chain
set of activities that transforms ra materials into the goods…
value-added activities
activities customers perceive as adding utility to the goods…
Cost Accounting - Chapter 1
Financial Accounting
Enterprise Resource Planning (ERP)
Management Accounting
database (or data warehouse or info-ba…
Focuses on reporting to external parties such as investors, g…
Single databases that collect data and feed it into applicati…
Measures, analyzes, and reports financial and non-financial i…
Consists of small, detailed bits of information that can be u…
Financial Accounting
Focuses on reporting to external parties such as investors, g…
Enterprise Resource Planning (ERP)
Single databases that collect data and feed it into applicati…
43 terms
Cost Accounting Exam 1
This describes the flow of goods, serv…
The 5 steps of the decision making pro…
The 3 key management accounting guidel…
A cost already incurred
Supply Chain
1. Identify the problem and uncertainties... 2. Obtain informati…
1. employ a cost-benefit approach... 2. give full recognition to…
Actual Cost
This describes the flow of goods, serv…
Supply Chain
The 5 steps of the decision making pro…
1. Identify the problem and uncertainties... 2. Obtain informati…
66 terms
Cost Accounting
___________________ measures, analyzes…
____________ specifies how an organiza…
What are the two broad strategies?
______________________ describes cost…
Cost accounting
Strategy
cost leadership and product differentiation
Strategic cost management
___________________ measures, analyzes…
Cost accounting
____________ specifies how an organiza…
Strategy
52 terms
Cost Accounting
Information Purpose
Primary Users of financial and managem…
Focus and emphasis of financial and ma…
Rules of measurement and reporting for…
Management: Helps managers make informed decisions to fulfill…
Management: Managers of the organisation... Financial: Outside…
management: future orientated (budget for the year ahead)... Fi…
management: based on cost-benefit analysis but do not have to…
Information Purpose
Management: Helps managers make informed decisions to fulfill…
Primary Users of financial and managem…
Management: Managers of the organisation... Financial: Outside…
22 terms
Cost accounting
Manufacturing
Nonmanufacturing
Product
Period
Direst material, direct labor etc
Selling costs, Administrative cost
all costs involved in acquiring or making a product
costs that are not product costs
Manufacturing
Direst material, direct labor etc
Nonmanufacturing
Selling costs, Administrative cost
30 terms
Cost Accounting
Cost Accounting
Cost Object
Direct Costs
Measures, analyzes, and reports financial and nonfinancial in…
Anything for which a measurement of costs is desired
Costs related to the particular cost object that can be trace…
Cost Accounting
Measures, analyzes, and reports financial and nonfinancial in…
Cost Object
Anything for which a measurement of costs is desired
68 terms
Cost Accounting
Joint Costs
Splitoff Point
Separable Costs
Product
costs of a production process that yields multiple products s…
when 2 or more products become separately identifiable
all costs incurred beyond the splitoff point that are assigna…
any output that has a positive total sales value
Joint Costs
costs of a production process that yields multiple products s…
Splitoff Point
when 2 or more products become separately identifiable
34 terms
Cost Accounting 1 Exam
Non-Value Added Activities
Cost Driver
Differential Costs
Non-Differential Costs
Activities that don't add value to the good or service from t…
Factors that causes, or "drives", costs
Costs that change in response to a particular course of action
Costs that can be ignored for decision-making purposes
Non-Value Added Activities
Activities that don't add value to the good or service from t…
Cost Driver
Factors that causes, or "drives", costs
138 terms
Cost Accounting
Manufacturing Overhead
Prime Cost
Conversion costs
Cost behavior/Cost Function
-indirect materials... -indirect labor... -repair and maintenance o…
Direct materials + Direct Labor
Direct labor + Manufacturing overhead
how cost reacts to changes in the level of activity
Manufacturing Overhead
-indirect materials... -indirect labor... -repair and maintenance o…
Prime Cost
Direct materials + Direct Labor
14 terms
Cost Accounting
Schedule of Cost of Goods Manufactured
Direct Materials Costs
Direct Manufacturing Labor
Indirect Manufacturing Costs
Direct Material Costs ... Direct Manufacturing Labor Costs ... Indi…
Direct Material Beg Inv.... +Direct Materials Purchased ... =Cost o…
Direct Manufacturing Labor
(Overhead) Plant Supplies Used ... Property Taxes on Plant ... Plan…
Schedule of Cost of Goods Manufactured
Direct Material Costs ... Direct Manufacturing Labor Costs ... Indi…
Direct Materials Costs
Direct Material Beg Inv.... +Direct Materials Purchased ... =Cost o…
18 terms
Cost Accounting
What controls does the food flow have?
AP (as purchased)
EP (edible portion)
What is yield %?
Quality, cost and sanitation
raw product which was purchased from your purveyor delivered…
amount of edible food after trimming, deboning and cooking.
EP/APx100
What controls does the food flow have?
Quality, cost and sanitation
AP (as purchased)
raw product which was purchased from your purveyor delivered…
26 terms
Cost Accounting
Cost formula and independent/dependent…
Which variable is the cost driver?
What is the relevant range?
What is a mixed cost
TC = F+Vx... TC=dependent... X = independent
x (volume)
the range in which the cost assumptions (fixed/variable) rema…
some variable/some fixed components (ex. phone bill)
Cost formula and independent/dependent…
TC = F+Vx... TC=dependent... X = independent
Which variable is the cost driver?
x (volume)
66 terms
Cost Accounting
Price variance
Efficiency variance
Flexible budget variance
Spending variance
actual - (actual input* budgeted rate)
(actual input* budgeted rate) - flexible
actual - flexible
actual - flexible (static)
Price variance
actual - (actual input* budgeted rate)
Efficiency variance
(actual input* budgeted rate) - flexible
10 terms
ABC Costing - Cost Accounting
Consequences of Over/under estimating…
Three ways ABC eliminates cost distort…
Four-level cost hierarchy
Unit-Level (or output-level costs)
Makes it seem more/less profitable based on general costs
Increase the number of costs tracked... Increase the number of i…
Unit-level costs are used for specific individual units of pr…
used for specific individual units of products/consumers/serv…
Consequences of Over/under estimating…
Makes it seem more/less profitable based on general costs
Three ways ABC eliminates cost distort…
Increase the number of costs tracked... Increase the number of i…
23 terms
Cost Accounting
Predetermined overhead rate (141)
Normal cost system(141)
Unit-level drivers(142)
Applied overhead(142)
estimated overhead divided by the estimated level of producti…
A cost measurement system in which the actual costs of direct…
...
...
Predetermined overhead rate (141)
estimated overhead divided by the estimated level of producti…
Normal cost system(141)
A cost measurement system in which the actual costs of direct…
68 terms
Cost Accounting
Cost
Actual Cost
Cost Objective
Cost Accumulation
A resource sacrificed or forgone to achieve a specific object…
Is the cost incurred as distinguished from a budgeted cosh, w…
Anything for which a measurement is deisred
Is the collection of cost data in some organized way by means…
Cost
A resource sacrificed or forgone to achieve a specific object…
Actual Cost
Is the cost incurred as distinguished from a budgeted cosh, w…
12 terms
Cost accounting
Financial acc
Cost acc
Direct cost (prime)
Variable cost (direct)
It provides info for ouside people (shareholders, creditors)
Info for inside people
Cost of raw materials and labour
Change with production volume
Financial acc
It provides info for ouside people (shareholders, creditors)
Cost acc
Info for inside people
23 terms
Cost accounting
Vadiable cost
Fixed costs
Unit variable costs
Cost driver
Changes in total in peopeition to changes in the related leve…
Remains unchanged in total for a given time period
Doesn't change based on volume
Is a variable like the level of activity or volume that affec…
Vadiable cost
Changes in total in peopeition to changes in the related leve…
Fixed costs
Remains unchanged in total for a given time period
32 terms
Cost accounting
Activity
Resource
Cost driver
Resource consumption cost driver
A specific task or action of work done
An economic element needed or consumed in performing activities
A factor that causes or relates to change in the cost of an a…
A measure of the amount of resources consumed by an activity
Activity
A specific task or action of work done
Resource
An economic element needed or consumed in performing activities
13 terms
Cost accounting
Cost acctg
O/H rate
Applied O/H
Cost of goods manufacturered
Measure product cost , income and efficiency (PIE)
Budgeted oh cost/Estimated cost driver
Actual cost driver*o/h rate
Wip(beg)... +dm used(including freight in)+dl+oh applied ... Total…
Cost acctg
Measure product cost , income and efficiency (PIE)
O/H rate
Budgeted oh cost/Estimated cost driver
26 terms
cost accounting
Which statements are true regarding po…
Which of the following would be a reas…
Which one of the following counts is n…
the electricity used for production ma…
Both A and B
number of components per completed unit
allocations incurred
volume related activity
Which statements are true regarding po…
Both A and B
Which of the following would be a reas…
number of components per completed unit
12 terms
Cost Accounting - Job Costing
Describe the relationship between Job…
What is a Proxy?
What are the types of proxies?
What are the three ways to assign over…
Job Costing vs Process Costing ... Job Costing = identifiable a…
Proxy :... imperfect representation of their underlying constructs
Types of Proxies :... noise = random and unpredictable differenc…
Three ways to Assign overhead to jobs are:... 1) Actual Costing…
Describe the relationship between Job…
Job Costing vs Process Costing ... Job Costing = identifiable a…
What is a Proxy?
Proxy :... imperfect representation of their underlying constructs
23 terms
Cost Accounting
Variable Cost
Fixed Cost
Direct Cost
Indirect Cost
Changes in total in proportion to changes to making product
Remains unchanged in total in proportion to changes to making…
1:1 Relationship to product (Directly related to making product
1:Many Relationship to product (Indirectly related to making…
Variable Cost
Changes in total in proportion to changes to making product
Fixed Cost
Remains unchanged in total in proportion to changes to making…
26 terms
cost accounting
2) Which of the following is a fixed c…
1) Which of the following is true if t…
3) Cost behavior refers to ________.…
6) Variable costs ________. ... A) are al…
Answer: A
c
Answer: A
b
2) Which of the following is a fixed c…
Answer: A
1) Which of the following is true if t…
c
21 terms
Cost Accounting
What is standard cost?
What is a cost object?
What is a direct cost?
What is an indirect cost?
A predetermined cost based on a preconceived benchmark.
Any object for which costs are generated or assigned.
Costs that are easily traceable to a product or service with…
Costs that are not easily traceable to a product or service.
What is standard cost?
A predetermined cost based on a preconceived benchmark.
What is a cost object?
Any object for which costs are generated or assigned.
21 terms
Cost accounting
Management accounting
Financial accounting
Job/product costing
Costs
-Producing reports... -Providing financial information... -Used by…
-Process of producing general purpose financial reports used…
-Assigning of costs to inventories as raw materials are conve…
-Economic sacrifice of resources for a particular purpose... -A…
Management accounting
-Producing reports... -Providing financial information... -Used by…
Financial accounting
-Process of producing general purpose financial reports used…
40 terms
Cost Accounting
Cost Allocation
Economic-decision purpose (cost alloca…
Motivation purpose (cost allocation)
Cost-reimbursement purpose (cost alloc…
involves assigning indirect costs to cost objects:
can be for short-run or long-run economic decisions. When foc…
includes costs that emphasize to decision makers how costs in…
includes costs that are reimbursable, often subject to contra…
Cost Allocation
involves assigning indirect costs to cost objects:
Economic-decision purpose (cost alloca…
can be for short-run or long-run economic decisions. When foc…
13 terms
Cost accounting
Cost accounting
Strategic cost management
Strategy
The value chain
Is the process of measuring analyzing and reporting financial…
Describes the cost management that specifically focus on stra…
Specifies how the organization matches its own capabilities w…
Is the sequence of business functions by which a product is m…
Cost accounting
Is the process of measuring analyzing and reporting financial…
Strategic cost management
Describes the cost management that specifically focus on stra…
37 terms
Cost accounting
activity
activity- based costing
activity- based management
batch-level costs
an event, task, or unit of work with a specified purpose (thi…
refines a costing system by identifying individual activities…
is a method of management decision making that uses an activi…
costs of activities related to a group of units of a product…
activity
an event, task, or unit of work with a specified purpose (thi…
activity- based costing
refines a costing system by identifying individual activities…
138 terms
Cost Accounting
Manufacturing Overhead
Prime Cost
Conversion costs
Cost behavior/Cost Function
-indirect materials... -indirect labor... -repair and maintenance o…
Direct materials + Direct Labor
Direct labor + Manufacturing overhead
how cost reacts to changes in the level of activity
Manufacturing Overhead
-indirect materials... -indirect labor... -repair and maintenance o…
Prime Cost
Direct materials + Direct Labor
134 terms
Cost Accounting
value chain
efficiency
effectiveness
differential revenues and costs
set of activities that transforms raw resources into goods/se…
being able to operate in a cost effective manner
being able to reach customers and have them buy your products
costs/revenues that change in response to a particular course…
value chain
set of activities that transforms raw resources into goods/se…
efficiency
being able to operate in a cost effective manner
20 terms
Cost Accounting
Customers Importance Rankings
Components' Cost Breakdown
Component contribution requirement
Integrity
Qualities expected in a Product
Level of effort actually being performed
Level at which a component is associated (related) with the a…
1. Sufficient in details... 2. Full Disclosure... 3. Transparency
Customers Importance Rankings
Qualities expected in a Product
Components' Cost Breakdown
Level of effort actually being performed
55 terms
Cost Accounting
Definition of accountancy
Structure of accountancy
Functions of accountancy (3)
Planning functions in cost/performance…
The accountancy system is the information system of the enter…
Accountancy in its contextual structuring consists of differe…
Planning function:... The accountancy system fulfills planning f…
Preparation of information for:... - determining lower price li…
Definition of accountancy
The accountancy system is the information system of the enter…
Structure of accountancy
Accountancy in its contextual structuring consists of differe…
24 terms
Cost Accounting
Transfer Price
Outlay Cost
Opportunity Cost
Transfer Price Equation
When one division of a company sells a product to another div…
Cost of making or obtaining the product (making a hat for $2)
The profit the division could make by selling the product in…
Outlay Cost + Opportunity Cost (hat: $2 + $3)
Transfer Price
When one division of a company sells a product to another div…
Outlay Cost
Cost of making or obtaining the product (making a hat for $2)
18 terms
Cost Accounting
Cost
Assets
Expenses
Cost Object
the economic sacrifice incurred or economic resources foregon…
bundles of future economic value and will be used to generate…
The cost of the assets used up or consumed in generating reve…
Accountants always measure the cost of "something". That some…
Cost
the economic sacrifice incurred or economic resources foregon…
Assets
bundles of future economic value and will be used to generate…
25 terms
Cost Accounting
Decision Model
Relevant Costs
Relevant Revenues
Sunk Costs
formal method of making a choice that often involves quantita…
expected future costs
expected future revenues
past costs; unavoidable, cannot be changed no matter what act…
Decision Model
formal method of making a choice that often involves quantita…
Relevant Costs
expected future costs
19 terms
Cost Accounting
contribution margin
cm ratio
break even sales revenue
break even in units
price - variance
cm / price
fixed costs / cm ratio
fixed costs/ c margin
contribution margin
price - variance
cm ratio
cm / price
32 terms
Cost Accounting
Product differentiation
Cost Leadership
Financial perspective
Customer Perspective
An organization's ability to offer products or services its c…
An organization's ability to achieve lower costs relative to…
This perspective evaluates the profitability of the strategy…
This perspective identifies targeted customer and market segm…
Product differentiation
An organization's ability to offer products or services its c…
Cost Leadership
An organization's ability to achieve lower costs relative to…
53 terms
Cost Accounting
Financial Accounting
Cost Management
Cost accounting information system
Operational control information system
produces outputs for external users such as financial stateme…
produces outputs for internal users ... -used to cost services,…
assigns cost to individual products and services
provides accurate and timely feedback concerning performance
Financial Accounting
produces outputs for external users such as financial stateme…
Cost Management
produces outputs for internal users ... -used to cost services,…
36 terms
Cost Accounting - Chapter 2
Cost
Expenses
Price
Accumulating Costs
The amount of cash or cash equivalent sacrificed for goods an…
Expired Costs from the production of revenues
The revenue per unit
A type of cost that is measured and recorded and also tells t…
Cost
The amount of cash or cash equivalent sacrificed for goods an…
Expenses
Expired Costs from the production of revenues
26 terms
Cost Accounting
Financial Accounting
Cost Accounting
Cost
Cost types
addresses formal reporting requirements and external stakehol…
Internally orientated function supporting the decision - maki…
A cost is incurred when a firm uses a resource for some purpose
Fixed cost (FC) - remains constant in total regardless of the…
Financial Accounting
addresses formal reporting requirements and external stakehol…
Cost Accounting
Internally orientated function supporting the decision - maki…
103 terms
cost accounting
Value chain
Research and Development, Design, Purc…
Marketing, Distribution, Customer Serv…
Financial Accounting Information
describes a set of activities that transforms raw materials a…
upstream activities
Downstream activities
designed for decision makers who are not directly involved in…
Value chain
describes a set of activities that transforms raw materials a…
Research and Development, Design, Purc…
upstream activities
45 terms
Cost Accounting
CPA
CMA
PCAOB
IMA
certified Public Accountant
Certified Management Accountant
Public Company Accounting Oversight Board
Institute of Management Accountants
CPA
certified Public Accountant
CMA
Certified Management Accountant
36 terms
Cost Accounting
Job-costing
Process Costing
valuing inventory
determining how much work has been don…
have a few jobs, each different from the next
used for companies that mass produce identical or very simila…
key process of process costing:
major costing problem of process costing:
Job-costing
have a few jobs, each different from the next
Process Costing
used for companies that mass produce identical or very simila…
11 terms
Cost Accounting
standard price/unit
standard quantity/unit
standard rate/hour
standard hours/unit
purchase cost... shipping costs(goods/freight in)... less: bulk pur…
bill of materials... add: allowance for rejects (human/warehouse…
hourly wage... fringe benefits(employer paid healthcare, 401k, s…
d.l. hours (engineering expectation)... add: allowance for rejec…
standard price/unit
purchase cost... shipping costs(goods/freight in)... less: bulk pur…
standard quantity/unit
bill of materials... add: allowance for rejects (human/warehouse…
29 terms
Cost Accounting
equivalent units
FIFO process costing
operation
operation costing
number of completed physical units to which units in inventor…
inventory method whereby the first goods received are the fir…
standardized method or technique of making a product that is…
hybrid costing system used in manufacturing goods that have s…
equivalent units
number of completed physical units to which units in inventor…
FIFO process costing
inventory method whereby the first goods received are the fir…
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