How can we help?

You can also find more resources in our Help Center.

Study sets matching "chapter 4 cost accounting"

Study sets
Classes
Users

Study sets matching "chapter 4 cost accounting"

24 terms
cost accounting: chapter 4
unit level product costing
predetermined overhead rate
normal cost system
drivers
- assigns only manufacturing costs to products ... - these costs…
- calculated at the beginning of the year ... - budgeted annuel…
- uses predetermined overhead rates and actual cost for direc…
- causal factors that measure the consumption of overhead by…
unit level product costing
- assigns only manufacturing costs to products ... - these costs…
predetermined overhead rate
- calculated at the beginning of the year ... - budgeted annuel…
25 terms
Cost Accounting Chapter 4
actual costing
actual indirect-cost rate
adjusted allocation-rate approach
budgeted indirect-cost rate
a costing system that traces direct costs to a cost object by…
is calculated by divid- ing actual total indirect costs in th…
restates all overhead entries in the general ledger and subsi…
Budgeted indirect = Budgeted annual indirect costs... cost rate…
actual costing
a costing system that traces direct costs to a cost object by…
actual indirect-cost rate
is calculated by divid- ing actual total indirect costs in th…
29 terms
Cost Accounting Chapter 4
Costing Systems
Job Costing System
Process-costing system
Cost object
The two types of costing systems are job-costing system and p…
Distinct unites of a product or service.... EG specific unfits o…
Masses of identical or similar units of a product or service.…
Anything for which a separate measurement of cost is desired
Costing Systems
The two types of costing systems are job-costing system and p…
Job Costing System
Distinct unites of a product or service.... EG specific unfits o…
20 terms
Chapter 4 Cost Accounting
Bottleneck
Constraint
Contribution Margin per Unit of Scarce…
Differential Analysis
Operation where the work required limits production.
Activity, resource, or policy that limits or bounds the attai…
Contribution margin per unit of a particular input with limit…
Process of estimating revenues and costs of alternative actio…
Bottleneck
Operation where the work required limits production.
Constraint
Activity, resource, or policy that limits or bounds the attai…
57 terms
Cost Accounting - Chapter 4
Differential Analysis
Differential Analysis is used for both…
Generally, when the term Short-Run is…
One important distinction between shor…
Process of estimating revenues and costs of alternative actio…
Short run and long run decisions
one year is used for convenience
Whether the timing of cash receipts and cash disbursements is…
Differential Analysis
Process of estimating revenues and costs of alternative actio…
Differential Analysis is used for both…
Short run and long run decisions
17 terms
Cost Accounting - Chapter 4
Cost-Volume-Profit Analysis (CVP)
Break-Even Point
Contribution Margin Income Statement
Contribution Margin
Estimates how changes in costs (both variable and fixed), sal…
Is the point where total revenue equals total cost (the point…
The income statement format that is based on the separation o…
The difference between sales and variable expense
Cost-Volume-Profit Analysis (CVP)
Estimates how changes in costs (both variable and fixed), sal…
Break-Even Point
Is the point where total revenue equals total cost (the point…
20 terms
Chapter 4 Cost Accounting
Differential Analysis
Short Run
Differential Costs
Sunk Costs
Process of estimating revenues and costs of alternative actio…
A period of time over which capacity will be unchanged , usua…
With two or more alternatives, costs that differ among or bet…
Costs incurred in the past that cannot be changed by present…
Differential Analysis
Process of estimating revenues and costs of alternative actio…
Short Run
A period of time over which capacity will be unchanged , usua…
27 terms
Cost Accounting Chapter 4
activity attributes
activity dictionary
activity drivers
activity inventory
financial and nonfinancial information items that provide des…
lists the activities in an organization along with desired at…
measure the demands that cost objects place on activities
a listing of the activities performed within an organization
activity attributes
financial and nonfinancial information items that provide des…
activity dictionary
lists the activities in an organization along with desired at…
23 terms
Cost Accounting Chapter 4
Actual costing
Actual indirect-cost rate
Adjusted allocation-rate approach
Budgeted indirect-cost rate
costing system that traces direct costs to a cost object by u…
cost pool divided by the actual total quantity of the cost al…
restates all overhead entries in the general ledger and subsi…
cost pool divided by the budgeted annual quantity of the cost…
Actual costing
costing system that traces direct costs to a cost object by u…
Actual indirect-cost rate
cost pool divided by the actual total quantity of the cost al…
20 terms
Chapter 4 - Cost Accounting
differential analysis
short run
differential costs
sunk costs
process of estimating revenues and costs of alternative actio…
period of time over which capacity will be unchanged, usually…
with two or more alternatives, costs that differ among or bet…
costs incurred in the past that cannot be changed by present…
differential analysis
process of estimating revenues and costs of alternative actio…
short run
period of time over which capacity will be unchanged, usually…
25 terms
Cost Accounting Chapter 4
differential analysis
short run
differential costs
sunk costs
process of estimating revenues and costs of alternative actio…
period of time over which capacity will be unchanged, usually…
with two or more alternatives, costs that differ among or bet…
costs incurred in the past that cannot be changed by present…
differential analysis
process of estimating revenues and costs of alternative actio…
short run
period of time over which capacity will be unchanged, usually…
21 terms
Cost Accounting Chapter 4
Direct Costs
Indirect Costs
general administrative costs
Cost object
traceable costs to a specific job
allocated... supervisory labor, company owned equipment, constru…
allocated:... office rent, utilities, general insurance to each…
thing which cost is desired
Direct Costs
traceable costs to a specific job
Indirect Costs
allocated... supervisory labor, company owned equipment, constru…
21 terms
Cost Accounting - Chapter 4
Normal Cost System
Unit Level Drivers
Applied Overhead
Overhead Variance
-A cost measurement system in which the actual costs of direc…
-Explain changes in cost as units produced change... -Units Prod…
-The overhead assigned to production using a predetermined ov…
-The difference between the actual overhead and the applied o…
Normal Cost System
-A cost measurement system in which the actual costs of direc…
Unit Level Drivers
-Explain changes in cost as units produced change... -Units Prod…
35 terms
Cost Accounting Chapter 4
What is costing?
What three choices does management nee…
What are the cost accumulation methods?
What are the cost measurement methods?
The process of accumulating classifying and assigning direct…
The cost accumulation method, the cost measurement method, th…
Job costing, process costing, or joint costing
actual, normal, or standard
What is costing?
The process of accumulating classifying and assigning direct…
What three choices does management nee…
The cost accumulation method, the cost measurement method, th…
24 terms
Cost Accounting Chapter 4 Terms
Predetermined Overhead Rate
Normal Cost System
Unit-level Drivers
Applied Overhead
Budgeted annual overhead/Budgeted annual driver level; Used b…
A cost system that uses predetermined overhead rates and actu…
Factors that measure the demands placed on unit-level activit…
Total overhead assigned to actual production at any point in…
Predetermined Overhead Rate
Budgeted annual overhead/Budgeted annual driver level; Used b…
Normal Cost System
A cost system that uses predetermined overhead rates and actu…
9 terms
Cost Accounting Chapter 4: Job Costing
Adjusted allocation-rate approach
Budgeted indirect-cost rate
Job-cost record (job-cost sheet)
Labour-time sheet
Approach that restates all overhead entries in the general le…
For each cost pool, the budgeted annual indirect costs divide…
The document where the costs for a job are recorded and accum…
A source document recording the type of labour, quantity of t…
Adjusted allocation-rate approach
Approach that restates all overhead entries in the general le…
Budgeted indirect-cost rate
For each cost pool, the budgeted annual indirect costs divide…
19 terms
cost accounting chapter 4
cost object
Cost pool
Cost-allocation base
JOB COSTING SYSTEM
are anything for which a measurement of cost is desired
a grouping of individual indirect cost items
a systematic way to link an indirect cost or group of indirec…
In a _______ ________ ___________, the cost object is a unit…
cost object
are anything for which a measurement of cost is desired
Cost pool
a grouping of individual indirect cost items
18 terms
Cost Accounting-Chapter 4
Cost Pool
Cost-Allocation Base/Cost-Application…
Job-Costing System
Job
A grouping of individual indirect cost items
A systematic way to link an indirect cost or group of indirec…
The cost object is a unit or multiple units of a distinct pro…
A unit or multiple units of a distinct product or service
Cost Pool
A grouping of individual indirect cost items
Cost-Allocation Base/Cost-Application…
A systematic way to link an indirect cost or group of indirec…
15 terms
Cost Accounting Chapter 4
Cost Pool
Cost-Allocation Base
Cost-Application Base
Job-Costing System
A grouping of individual indirect cost items
A systematic way to link an indirect cost or group of indirec…
When the cost object is a job, product, or customer, the cost…
System where a cost object is a unit or multiple units of a d…
Cost Pool
A grouping of individual indirect cost items
Cost-Allocation Base
A systematic way to link an indirect cost or group of indirec…
20 terms
Cost Accounting Chapter 4
bottleneck
constraints
contribution margin per unit of scare…
differential analysis
operation where the work required limits production
activities, resources, or policies that limit or bound the at…
contribution margin per unit of a particular input with limit…
process of estimating revenues and costs of alternative actio…
bottleneck
operation where the work required limits production
constraints
activities, resources, or policies that limit or bound the at…
14 terms
Cost Accounting Chapter 4
cost object
direct costs of a cost object
indirect costs of a cost object
cost pool
anything for which a measurement of costs is desired
costs related to a particular cost object that can be traced…
costs related to a particular cost object that cannot be trac…
grouping of individual indirect cost items; organized in conj…
cost object
anything for which a measurement of costs is desired
direct costs of a cost object
costs related to a particular cost object that can be traced…
17 terms
Cost Accounting Chapter 4
Cost management systems (CMS)
Cost accounting
Cost object
Cost accumulation
a collection of tools and techniques that identify how manage…
the part of the cost management system that measures cost for…
anything for which decision makers desire a separate measurem…
collecting costs by some natural classification such as activ…
Cost management systems (CMS)
a collection of tools and techniques that identify how manage…
Cost accounting
the part of the cost management system that measures cost for…
23 terms
Cost accounting chapter 4
Cost object
Direct costs of a cost object
Indirect costs of a cost object
Cost pool
An object for which a measurement is desired
Costs that can be traced in an economically feasible manner
Costs related that cannot be traced in a economically feasibl…
Group of indirect costs
Cost object
An object for which a measurement is desired
Direct costs of a cost object
Costs that can be traced in an economically feasible manner
21 terms
Cost Accounting Chapter 4
differential analysiss
short run
differential costs
sunk costs
Process of estimating revenues and costs of alternative actio…
Period of time over which capacity will be unchanged, usually…
With two or more alternatives, costs that differ among or bet…
Costs incurred in the past that cannot be changed by present…
differential analysiss
Process of estimating revenues and costs of alternative actio…
short run
Period of time over which capacity will be unchanged, usually…
25 terms
Cost Accounting Chapter 4
Activity Based Management
Activity
Activity Analysis
Value-Added Activity
A business process model focusing on the control of productio…
Any repetitive action that is performed in fulfillment of a b…
The process of studying actives to... 1) Classify them into one…
Increases the worth of a product or service to a customer and…
Activity Based Management
A business process model focusing on the control of productio…
Activity
Any repetitive action that is performed in fulfillment of a b…
25 terms
Cost Accounting Chapter 4
actual costing
actual indirect-cost rate
adjusted allocation-rate approach
budgeted indirect-cost rate
a costing system that traces direct costs to a cost object by…
is calculated by divid- ing actual total indirect costs in th…
restates all overhead entries in the general ledger and subsi…
Budgeted indirect = Budgeted annual indirect costs... cost rate…
actual costing
a costing system that traces direct costs to a cost object by…
actual indirect-cost rate
is calculated by divid- ing actual total indirect costs in th…
26 terms
Chapter 4 - Cost Accounting
Cost Pool
Cost-Allocation Base
Cost-application base
Job costing system
A grouping of individual indirect cost items. Cost pools can…
a systematic way to link an indirect cost or group of indirec…
when the cost object is a job, product, or customer, the cost…
costing system in which the cost object is a unit or multiple…
Cost Pool
A grouping of individual indirect cost items. Cost pools can…
Cost-Allocation Base
a systematic way to link an indirect cost or group of indirec…
18 terms
Cost Accounting Chapter 4
actual accounting
adjusted allocation rate approach
budgeted indirect cost rate
cost allocation base
costing system that traces direct costs to cost object baked…
restates all overhead entries in general ledger and subsidiar…
budgeted annual indirect costs/budgeted annual quantity of co…
systematic way to link an indirect cost to cost objects
actual accounting
costing system that traces direct costs to cost object baked…
adjusted allocation rate approach
restates all overhead entries in general ledger and subsidiar…
14 terms
Cost Accounting Chapter 4
differential analysis
short run
differential costs
sunk costs
process of estimating revenues and costs of alternative actio…
-capacity does not change; fixed costs do not change... -period…
with two or more alternatives, costs that differ among or bet…
cost incurred in the past that cannot be changed by present o…
differential analysis
process of estimating revenues and costs of alternative actio…
short run
-capacity does not change; fixed costs do not change... -period…
37 terms
Cost Accounting - Chapter 4
cost object
direct costs
indirect costs
cost assignment
anything for which a measurement of costs is desired
costs related to a particular cost object that can be traced…
costs related to a particular cost object that cannot be trac…
general term for assigning costs, whether direct or indirect,…
cost object
anything for which a measurement of costs is desired
direct costs
costs related to a particular cost object that can be traced…
Chapter 4 cost accounting
Differential analysis
Short run
Differential costs
Sunk costs
Process of estimating revenues and cost of alternate actions…
. A time over which capacity will be unchanged, usually one y…
With two or more art or alternatives, costs that differ among…
Cost incurred in the past that cannot be changed by present o…
Differential analysis
Process of estimating revenues and cost of alternate actions…
Short run
. A time over which capacity will be unchanged, usually one y…
57 terms
Cost Accounting - Chapter 4
Differential Analysis
Differential Analysis is used for both…
Generally, when the term Short-Run is…
One important distinction between shor…
Process of estimating revenues and costs of alternative actio…
Short run and long run decisions
one year is used for convenience
Whether the timing of cash receipts and cash disbursements is…
Differential Analysis
Process of estimating revenues and costs of alternative actio…
Differential Analysis is used for both…
Short run and long run decisions
13 terms
Cost Accounting Chapter 4
Factory overhead
Variable cost
Semivariable cost
Step cost
Everything except for direct materials and direct labor
Costs that vary in direct proportion to volume changes
Combination of fixed and variable costs
Looks like steps
Factory overhead
Everything except for direct materials and direct labor
Variable cost
Costs that vary in direct proportion to volume changes
57 terms
Cost Accounting - Chapter 4
Differential Analysis
Differential Analysis is used for both…
Generally, when the term Short-Run is…
One important distinction between shor…
Process of estimating revenues and costs of alternative actio…
Short run and long run decisions
one year is used for convenience
Whether the timing of cash receipts and cash disbursements is…
Differential Analysis
Process of estimating revenues and costs of alternative actio…
Differential Analysis is used for both…
Short run and long run decisions
20 terms
Chapter 4 (Job Costing-Strategic Cost Accounting)
3 Characteristics of Costing methods:
Actual costing system
Normal costing system
Standard costing system
3 Characteristics of Costing methods: ... 1) The cost accumulat…
Actual costing system: uses actual costs incurred for all pro…
Normal costing system: uses actual costs for direct materials…
Standard costing system: uses standard costs and quantities f…
3 Characteristics of Costing methods:
3 Characteristics of Costing methods: ... 1) The cost accumulat…
Actual costing system
Actual costing system: uses actual costs incurred for all pro…
20 terms
Cost Accounting Chapter 4: Job Costing
Job
Cost
Cost Object
Cost Accumulation
A unit or multiple related units of a unique product or servi…
a resource sacrificed to achieve a specific objective
Anything of interest for which a cost is desired
An organized collection of cost data
Job
A unit or multiple related units of a unique product or servi…
Cost
a resource sacrificed to achieve a specific objective
19 terms
Cost Accounting Chapter 4
Cost pool
Cost-allocation base
What are two basic types of costing sy…
Job-costing system
A grouping of individual indirect cost item. Cost pools can r…
a systematic way to link an indirect cost or group of indirec…
1. Job-costing system... 2. Process-costing system
System accounting for distinct cost objects called jobs. Each…
Cost pool
A grouping of individual indirect cost item. Cost pools can r…
Cost-allocation base
a systematic way to link an indirect cost or group of indirec…
17 terms
Cost accounting chapter 4
Cost allocation
How does a job-costing system differ f…
Why might an advertising agency use jo…
Seven steps in job costing
The assigning of indirect costs to the chosen cost object
A job-costing assigns costs to distinct units; a process-cost…
Job costing enables all the specific aspects of each job to b…
1)identify the job that is the chosen cost object... 2)identify…
Cost allocation
The assigning of indirect costs to the chosen cost object
How does a job-costing system differ f…
A job-costing assigns costs to distinct units; a process-cost…
14 terms
Cost Accounting Chapter 4
What is a cost object?
What are the direct costs of a cost ob…
what are the indirect costs of a cost…
How are indirect costs allocated to co…
anything for which a measurement of cost is desired
costs related to a particular cost object that can be traced…
costs related to a particular cost object that cannot be trac…
Using a cost allocation method
What is a cost object?
anything for which a measurement of cost is desired
What are the direct costs of a cost ob…
costs related to a particular cost object that can be traced…
35 terms
Cost Accounting Chapter 4
What is costing?
What three choices does management nee…
What are the cost accumulation methods?
What are the cost measurement methods?
The process of accumulating classifying and assigning direct…
The cost accumulation method, the cost measurement method, th…
Job costing, process costing, or joint costing
actual, normal, or standard
What is costing?
The process of accumulating classifying and assigning direct…
What three choices does management nee…
The cost accumulation method, the cost measurement method, th…
13 terms
Cost Accounting Chapter 4 Study Guide
Cost Pool
Cost Tracing
Cost Allocation
Cost-Allocation Base
A grouping of individual cost items.
The assigning of direct costs to the chosen cost object.
The assigning of indirect costs to the chosen cost object.
A factor that links, in a systematic way, an indirect cost or…
Cost Pool
A grouping of individual cost items.
Cost Tracing
The assigning of direct costs to the chosen cost object.
22 terms
Cost Accounting Chapter 4 Notes
Product/Service
1. Determine the price... 2. Determine in…
Batches
1. Auditing... 2. Consulting Services
__________ is the cost object
Managers need to know the cost of the product or service in o…
Job Order Costing is used by firms whose products are identif…
What are 2 examples of types of companies that would implemen…
Product/Service
__________ is the cost object
1. Determine the price... 2. Determine in…
Managers need to know the cost of the product or service in o…
21 terms
Cost Accounting Chapter 4 Definitions
Cost Object
Direct Costs of a Cost Object
Indirect Costs of a Cost Object
Cost Allocation
Anything for which a measurement of costs is desired
Costs related to a particular cost object that can be traced…
Costs related to a particular cost object that cannot be trac…
The process of assigning indirect costs
Cost Object
Anything for which a measurement of costs is desired
Direct Costs of a Cost Object
Costs related to a particular cost object that can be traced…
25 terms
Cost Accounting Chapter 4 Definitions
actual costing
actual indirect-cost rate
adjusted allocation-rate approach
budgeted indirect-cost rate
a costing system that traces direct costs to a cost object by…
is calculated by divid- ing actual total indirect costs in th…
restates all overhead entries in the general ledger and subsi…
Budgeted indirect = Budgeted annual indirect costs... cost rate…
actual costing
a costing system that traces direct costs to a cost object by…
actual indirect-cost rate
is calculated by divid- ing actual total indirect costs in th…
11 terms
Cost accounting terms Chapter 4
Cost Pool
Job Cost
Process Cost
Cost center
All the overhead is allocated together
Heavy in direct labor and direct materials. Cost is allocated…
Costs are apply to the process. Think mass produced
a department with a supervisor where indirect costs are counted
Cost Pool
All the overhead is allocated together
Job Cost
Heavy in direct labor and direct materials. Cost is allocated…
30 terms
Cost Accounting 8 ed chapter 4
activity pg 114
activity analysis pg 114
activity- based costing (ABC) pg 124
activity-based management (ABM) pg 114
a repetitive action performed in fulfillment of business func…
the process of detailing the various repetitive actions that…
a process using multiple cost drivers to predict and allocate…
A discipline that focuses on the activities incurred during t…
activity pg 114
a repetitive action performed in fulfillment of business func…
activity analysis pg 114
the process of detailing the various repetitive actions that…
18 terms
Cost Accounting 320: Chapter 4
Cost Pool
Cost-Allocation Base
Cost-Application Base
Job-Costing System
Grouping of individual indirect cost items
A systematic way to link an indirect cost or group of indirec…
When the cost object is a job, product, or customer, the cost…
The cost object is a unit or multiple units of a distinct pro…
Cost Pool
Grouping of individual indirect cost items
Cost-Allocation Base
A systematic way to link an indirect cost or group of indirec…
10 terms
Cost Accounting Formulas chapter 4
Ending WIP Formula
Direct Materials Inventory Formula
Direct Manufacturing Labor Costs Formula
Finished Goods Available for Sale Form…
Beginning WIP + Total Manuf. Cost - COGM = End WIP
Beg. DM Inventory + DM Purchased = DM Available for Productio…
Total Manufacturing Costs Incurred - Total Manuf. Overhead Co…
Beginning FG Inventory + COGM = Ending Finished Goods Inventory
Ending WIP Formula
Beginning WIP + Total Manuf. Cost - COGM = End WIP
Direct Materials Inventory Formula
Beg. DM Inventory + DM Purchased = DM Available for Productio…
11 terms
Managerial Accounting Chapter 4 - Quality and Cost Management
Activity-based costing
Activity center
Backflush costing
Balanced scorecard
A costing method that first assigns costs to activities, then…
An activity center is a unit of the organization that perform…
Backflush costing is a method of assigning costs to inventori…
A set of performance targets and results that show an organiz…
Activity-based costing
A costing method that first assigns costs to activities, then…
Activity center
An activity center is a unit of the organization that perform…
17 terms
ABC Cost Accounting Chapter 4
ABC Management
Activity
Objective of ABC MGT
Value Added Activity
Focuses on activities during production and identifies "cost…
A business/manufacturing function performed in making products
To improve the value received by customers and enhance profit…
Increases worth of product or service to a customer
ABC Management
Focuses on activities during production and identifies "cost…
Activity
A business/manufacturing function performed in making products
1 of 10