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Study sets matching "cost accounting chp2"

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Study sets matching "cost accounting chp2"

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
66 terms
Chapter 2 Cost Accounting
21. Which of the following statements…
22. Which of the following statements…
23. Which of the following best distin…
24. Which of the following accounts wo…
A. Only (1) is true.
A. Only (1) is false.
D. Opportunity costs are sacrifices from foregone alternative…
E. Freight out.
21. Which of the following statements…
A. Only (1) is true.
22. Which of the following statements…
A. Only (1) is false.
31 terms
Cost Accounting - Chapter 2
Cost
Unexpired cost
Expired cost
Direct cost
Reflects the monetary measure of resources consumed to attain…
The balance sheet value of an asset
Portion of asset's value consumed or sacrificed during a peri…
Conveniently and economically traceable to the cost object
Cost
Reflects the monetary measure of resources consumed to attain…
Unexpired cost
The balance sheet value of an asset
36 terms
Cost Accounting chapter 2
Cost
Actual cost
Budgeted Cost:
Cost object
resource sacrificed or foregone to achieve an objective... - mon…
cost incurred (Historical)
Predicted or forecasted cost
thing that cost is associated with/determined by... anything of…
Cost
resource sacrificed or foregone to achieve an objective... - mon…
Actual cost
cost incurred (Historical)
Cost accounting chapter 2
average cost (unit cost)
budgeted cost
actual cost
conversion cost
calculated by dividing the total cost by the related number o…
a predicted, or forecasted, cost (a future cost)
the cost incurred (a historical or past cost)
all manufacturing costs other than direct materials costs (di…
average cost (unit cost)
calculated by dividing the total cost by the related number o…
budgeted cost
a predicted, or forecasted, cost (a future cost)
15 terms
Cost Accounting Chapter 2
Cost-Object
Direct-Cost
Indirect-Cost
Cost Assignment
Anything included to measure the cost of an object (material,…
Specific only to one item (DM, DL)
cannot be traced to only one item, allocate indirect cost ove…
Direct = Trace cost... Indirect = Allocate cost
Cost-Object
Anything included to measure the cost of an object (material,…
Direct-Cost
Specific only to one item (DM, DL)
35 terms
cost accounting chapter 2
cost
unexpired cost
expired cost
cost management system
monetary measure of resources consumed to attain objective
BS value of asset
portion of asset's value consumed/sacrificed (AKA "EXPENSE")
formal methods developed for planning/controlling organizatio…
cost
monetary measure of resources consumed to attain objective
unexpired cost
BS value of asset
Cost Accounting Chapter 2
Cost
Expense
Outlay Cost
Opportunity Cost
Sacrifice of resources
Cost that is charged against revenue in a accounting period.
Past, present, or future cash outflow.
Forgone benefit from the best (forgone) alternative course of…
Cost
Sacrifice of resources
Expense
Cost that is charged against revenue in a accounting period.
36 terms
Cost Accounting Chapter 2
Administrative costs
Contribution margin
Conversion costs
Cost
Costs required to manage the organization and provide staff s…
Sales price - variable costs per unit. (58)
Sum of direct labor and manufacturing overhead. (45)
Sacrifice of resources. (40)
Administrative costs
Costs required to manage the organization and provide staff s…
Contribution margin
Sales price - variable costs per unit. (58)
33 terms
Cost Accounting: Chapter 2
Financial Statements include...
Cost
Expense
Product Costs (Inventoriable Costs)
-balance sheet... -income statement... -statement of owner's equity…
a sacrifice made (a resource given up) to achieve a particula…
the cost incurred when an asset is used up or sold for the pu…
only costs that are assigned (related) to goods that were eit…
Financial Statements include...
-balance sheet... -income statement... -statement of owner's equity…
Cost
a sacrifice made (a resource given up) to achieve a particula…
49 terms
Cost Accounting Chapter 2
Cost
Expense
outlay cost
opportunity cost
sacrifice of resources... - when we buy one thing, we give up (s…
cost that is charged against revenue in an accounting period
past, present, or future cash outflow
forgone benefit from the best (forgone) alternative course of…
Cost
sacrifice of resources... - when we buy one thing, we give up (s…
Expense
cost that is charged against revenue in an accounting period
36 terms
Cost Accounting - Chapter 2
administrative costs
contribution margin
conversion costs
cost
Costs required to manage the organization and provide staff s…
Sales price - Variable costs per unit.
Sum of direct labor and manufacturing overhead.
Sacrifice of resources.
administrative costs
Costs required to manage the organization and provide staff s…
contribution margin
Sales price - Variable costs per unit.
33 terms
Cost Accounting: Chapter 2
Cost
Unexpired Cost
Expired Cost
Cost Management System (CMS)
The cost or cash equivalent value necessary to attain an obje…
An asset.
An expense or a loss.
A set of formal methods developed for planning and controllin…
Cost
The cost or cash equivalent value necessary to attain an obje…
Unexpired Cost
An asset.
26 terms
Cost Accounting - Chapter 2
Cost
Expenses
Loss
Assets
-Cash or cash equivalent value sacrificed for goods and servi…
-Expired costs that are deducted from revenues
-Cost that expire without producing any revenue benefit
-Unexpired costs and appear on the balance sheet
Cost
-Cash or cash equivalent value sacrificed for goods and servi…
Expenses
-Expired costs that are deducted from revenues
43 terms
Cost Accounting: Chapter 2
Cost
Cost Objective
Budgeted Cost
Actual Cost
A resource sacrificed or forgone to achieve a specified objec…
Anything for which a measurement of cost is desired
A predicted or forecasted cost
The cost incurred (a historic or past cost)
Cost
A resource sacrificed or forgone to achieve a specified objec…
Cost Objective
Anything for which a measurement of cost is desired
38 terms
Cost Accounting Chapter 2
Actual Cost 29
Average Cost 36
Budgeted Cost 29
Conversion Cost 46
The cost incurred (historical or past cost)
Another name for unit cost, calculated by dividing the total…
Predicted or Forecasted Cost.
All manufacturing costs other than direct material costs. Rep…
Actual Cost 29
The cost incurred (historical or past cost)
Average Cost 36
Another name for unit cost, calculated by dividing the total…
12 terms
Chapter 2 Cost Accounting
Define cost object and give three exam…
Define direct costs and indirect costs.
Why do managers consider direct costs…
Name three factors that will affect th…
A cost object is anything for which a separate measurement of…
Direct costs= the particular cost object and can be traced to…
Because direct costs that are traced to a particular cost obj…
Three factors:... -The materiality of the cost in question.... -Ava…
Define cost object and give three exam…
A cost object is anything for which a separate measurement of…
Define direct costs and indirect costs.
Direct costs= the particular cost object and can be traced to…
37 terms
Cost Accounting Chapter 2
Cost
Expense
Outlay cost
Opportunity cost
sacrifice of resources
cost that is charged against revenue in an accounting period
past, present, or future cash outflow
forgone benefit from the best alternative course of action
Cost
sacrifice of resources
Expense
cost that is charged against revenue in an accounting period
35 terms
Cost Accounting - Chapter 2
Cost
Expense
Product Cost
Costs of Goods Sold
can be defined as the sacrifice made, usually measured by the…
the cost incurred when an asset is used up or sold for the pu…
a cost assigned to goods that were either purchased or manufa…
in the period of the sale, the product costs are recognized a…
Cost
can be defined as the sacrifice made, usually measured by the…
Expense
the cost incurred when an asset is used up or sold for the pu…
35 terms
Cost Accounting: Chapter 2
Cost
Cost management system
Cost object
Direct costs
It reflects the monetary measure of resources consumed to att…
It is a set of formal methods developed for planning and cont…
It is anything for which management wants to collect or accum…
These are costs that are conveniently and economically tracea…
Cost
It reflects the monetary measure of resources consumed to att…
Cost management system
It is a set of formal methods developed for planning and cont…
28 terms
Cost Accounting Chapter 2
Cost
Actual Cost
Budgeted Cost
Cost Object
A sacrificed resource to achieve a specific object
A cost that has occurred
A predicted cost
anything of interest for which a cost is desired
Cost
A sacrificed resource to achieve a specific object
Actual Cost
A cost that has occurred
34 terms
Cost Accounting Chapter 2
Actual Cost
Average Cost
Budgeted Cost:
Conversion costs
cost incurred (a historical or past cost) as distinguished fr…
cost computed by dividing total cost by number of units (aka…
predicted cost as distinguished from actual/historical cost
all manufacturing costs other than direct material costs
Actual Cost
cost incurred (a historical or past cost) as distinguished fr…
Average Cost
cost computed by dividing total cost by number of units (aka…
12 terms
Cost Accounting Chapter 2 - Cost-Volume-Profit
Cost-Volume-Profit Analysis (CVP)
Contribution Margin
Contribution Margin Per Unit
Contribution Margin Ratio (CMR)
Technique that examines changes in profits in response to cha…
Total Revenue - Variable Costs
Selling price per unit - Variable cost per unit
Percentage by which the selling price (or revenue) per unit e…
Cost-Volume-Profit Analysis (CVP)
Technique that examines changes in profits in response to cha…
Contribution Margin
Total Revenue - Variable Costs
39 terms
Cost Accounting; Cost Concepts and Behavior: Chapter 2
Cost
Expense
Outlay Cost
Opportunity Cost
A sacrifice of resources.
A cost charged against revenue in an accounting period.
A past, present, or future cash outflow. Ex. College tuition.
The forgone benefit that could have been realized from the be…
Cost
A sacrifice of resources.
Expense
A cost charged against revenue in an accounting period.
19 terms
Chapter 2: Managerial Accounting and Cost Concepts
Cost Object
Direct Cost
Indirect Cost
Common Cost
Anything for which cost data are desired (products, customers…
A cost that can easily be traced to a specified cost object.
A cost that cannot be easily traced to a specified cost object.
A cost that is incurred to support a number of cost objects b…
Cost Object
Anything for which cost data are desired (products, customers…
Direct Cost
A cost that can easily be traced to a specified cost object.
42 terms
Cost Accounting Chapter 2 Terms
System
Accounting Information System
Cost
Expense
A set of interrelated parts that performs one or more process…
Consists of interrelated manual and computer parts and uses p…
The cash or cash equivalent value sacrificed for goods and se…
Expired costs
System
A set of interrelated parts that performs one or more process…
Accounting Information System
Consists of interrelated manual and computer parts and uses p…
124 terms
Cost Accounting Chapter 2
Cost objects include:... A) products... B) c…
Actual costs are:
The general term used to identify both…
In order to make decisions, managers n…
D) All of these answers are correct.
the costs incurred
cost assignment
both costs
Cost objects include:... A) products... B) c…
D) All of these answers are correct.
Actual costs are:
the costs incurred
21 terms
Cost Accounting-Chapter 2
Cost
Actual Cost
Budgeted Cost
Cost object
A sacrificed or forgone resource to achieve a specific object…
A cost that has occurred
A predicted cost
Anything for which a cost measurement is desired
Cost
A sacrificed or forgone resource to achieve a specific object…
Actual Cost
A cost that has occurred
41 terms
Chapter 2 Cost accounting
Cost
Actual cost
Budgeted cost
cost object
a sacrificed or forgone resource to achieve a specific object…
a cost that has occurred.
a predicted cost.
anything for which a cost measurement is desired.
Cost
a sacrificed or forgone resource to achieve a specific object…
Actual cost
a cost that has occurred.
61 terms
Cost Accounting Chapter 2
Cost
Expense
outlay cost
opportunity cost
sacrifice of resources... - when we buy one thing, we give up (s…
cost that is charged against revenue in an accounting period
past, present, or future cash outflow
forgone benefit from the best (forgone) alternative course of…
Cost
sacrifice of resources... - when we buy one thing, we give up (s…
Expense
cost that is charged against revenue in an accounting period
34 terms
Chapter 2 Cost Accounting
Actual cost
Budgeted cost
Cost object
Cost accumulation
the cost incurred (a historical or past cost), as distinguish…
a predicted or forecasted cost (future cost) as distinguished…
anything for which a measurement of costs is desired
the collection of cost data in some organized way by means of…
Actual cost
the cost incurred (a historical or past cost), as distinguish…
Budgeted cost
a predicted or forecasted cost (future cost) as distinguished…
35 terms
Cost Accounting: Chapter 2
Cost
Expense
Outlay Cost
Opportunity Cost
Sacrifice of resources
Cost that is charged against revenue in an accounting period
Past, present, or future cash outflow
Forgone benefit from the best (forgone) alternative course of…
Cost
Sacrifice of resources
Expense
Cost that is charged against revenue in an accounting period
108 terms
Cost Accounting Chapter 2
Cost accounting system
Cost
Price
Expense
records and maintains the use of economic resources by the or…
Sacrifice of resources
Measures the sacrifice we must make to acquire an item
A cost charged against revenue in an accounting period
Cost accounting system
records and maintains the use of economic resources by the or…
Cost
Sacrifice of resources
47 terms
Cost Accounting Chapter 2
Cost
Actual cost
cost object
1. cost accumulation... 2. cost assignment
1. A resource sacrificed or forgone to achieve a specific obj…
1. cost incurred... 2. historical or past cost
anything for which a cost measurement is desired
Cost system
Cost
1. A resource sacrificed or forgone to achieve a specific obj…
Actual cost
1. cost incurred... 2. historical or past cost
20 terms
cost accounting chapter 2
cost
actual cost
budgeted cost
cost object
a sacrificed or forgone resource to achieve a specific object…
a cost that has occurred
a predicted cost
anything for which a cost measurement is desired
cost
a sacrificed or forgone resource to achieve a specific object…
actual cost
a cost that has occurred
19 terms
cost accounting - chapter 2
cost
cost object
cost accumulation
indirect costs
resource sacrificed
anything for which a measurement of costs is desired
the collection of cost data in some organized way by an accou…
cannot be traced
cost
resource sacrificed
cost object
anything for which a measurement of costs is desired
25 terms
Cost Accounting - Chapter 2
A Cost
An Actual Cost
Budgeted Cost
Cost Object
A resource sacrificed or forgone to achieve a specific object…
The cost incurred (a historical or past cost)
A predicted or forecasted type of cost
Anything for which a cost measurement is desired
A Cost
A resource sacrificed or forgone to achieve a specific object…
An Actual Cost
The cost incurred (a historical or past cost)
8 terms
Cost Accounting Chapter 2
Direct Cost
Indirect Cost
Common Cost
Raw Materials
Can easily and conveniently be traced
Cannot easily and conveniently be traced
type of indirect cost that is incurred to support a number of…
Refer to any materials that are use in final product. And the…
Direct Cost
Can easily and conveniently be traced
Indirect Cost
Cannot easily and conveniently be traced
8 terms
Chapter 2 Cost Accounting Equations
Prime cost
Conversion cost
Variable manufacturing cost
Full unit cost
DL + DM
DL + MO (fixed and variable)
DL + DM + Variable MO
All unit fixed costs + all unit variable costs
Prime cost
DL + DM
Conversion cost
DL + MO (fixed and variable)
37 terms
Cost Accounting: Chapter 2
Actual Cost System
Appraisal Cost
Conversion Cost
Cost
A valuation method that uses actual direct material, direct l…
A quality control cost incurred for monitoring or inspection;…
The sum of direct labor & overhead cost; the cost necessary t…
The cash or cash equivalent value necessary to obtain an obje…
Actual Cost System
A valuation method that uses actual direct material, direct l…
Appraisal Cost
A quality control cost incurred for monitoring or inspection;…
Cost Accounting Chapter 2
Cost Object
Examples of a Cost Object
Direct Cost
Indirect Cost
anything for which a measurement of costs is desired
a product, service, project, a customer, brand category, acti…
cost related to the particular cost object that can be traced…
cost related to a particular cost object that cannot be trace…
Cost Object
anything for which a measurement of costs is desired
Examples of a Cost Object
a product, service, project, a customer, brand category, acti…
11 terms
Cost Accounting Chapter 2
Cost Accumulation
Direct Costs of a Cost Object
Cost Tracing
Indirect costs of a cost object
The collection of cost data in some organized way by means of…
related to the particular cost object and can be traced to it…
the assignment of direct costs to a particular cost object
related to the particular cost object but cannot be traced to…
Cost Accumulation
The collection of cost data in some organized way by means of…
Direct Costs of a Cost Object
related to the particular cost object and can be traced to it…
8 terms
cost accounting chapter 2
cost
unexpired and expired cost
cost management system
cost objective
reflects the money amount of resources used to attain an obje…
an asset is an unexpired cost until used then it is an expens…
a set of formal methods developed for planning and controllin…
anything for which management wants to collect or accumulate…
cost
reflects the money amount of resources used to attain an obje…
unexpired and expired cost
an asset is an unexpired cost until used then it is an expens…
24 terms
Cost Accounting Chapter 2
Cost
Actual Cost
Budgeted Cost
Cost Object
A resource sacrificed or forgone to achieve a specific object…
The cost incurred (a historical or past cost)
A predicted, or forecasted cost (a future cost)
Anything for which a cost measurement is desired
Cost
A resource sacrificed or forgone to achieve a specific object…
Actual Cost
The cost incurred (a historical or past cost)
12 terms
Cost Accounting chapter 2
direct cost
indirect cost
Materiality of cost, information-gathe…
variable cost
traceable to cost object in cost-effective manner
not traceable to cost object in cost-effective manner
factors affecting classification
total-change in direct proportion w/ respect to changes in co…
direct cost
traceable to cost object in cost-effective manner
indirect cost
not traceable to cost object in cost-effective manner
33 terms
Cost Accounting - Chapter 2
Cost
Actual Cost
Budgeted Cost
Cost objective
Is a resource sacrificed or foregone to achieve a specific ob…
is the cost incurred (a historical cost)
Predicted or forecasted cost (future cost)
Anything for which a cost measurement is desired
Cost
Is a resource sacrificed or foregone to achieve a specific ob…
Actual Cost
is the cost incurred (a historical cost)
36 terms
Cost Accounting Chapter 2
administrative costs
contribution margin
conversion costs
cost
costs required to manage the organization and provide staff s…
sales price minus variable costs per unit
sum of direct labor and manufacturing overhead
sacrifice of resources
administrative costs
costs required to manage the organization and provide staff s…
contribution margin
sales price minus variable costs per unit
28 terms
Cost Accounting Chapter 2
actual cost
budgeted cost
cost object
cost accumulation
the cost incurred (a historical or past cost)
is predicted, or forecasted, cost (a future cost)
in which anything for which a cost is desired
the collection of cost data in some organized way by means of…
actual cost
the cost incurred (a historical or past cost)
budgeted cost
is predicted, or forecasted, cost (a future cost)
18 terms
Cost Accounting Chapter 2
Types of Companies
Service Companies
Merchandisers
Manufacturers
service, merchandise, manufacturing
provide service only; no inventory (advertising, bank, law fi…
resell products purchased from suppliers, one inventory accou…
use labor and other inputs to convert raw materials into fini…
Types of Companies
service, merchandise, manufacturing
Service Companies
provide service only; no inventory (advertising, bank, law fi…
36 terms
Cost Accounting Chapter 2
Cost
Expense
Outlay Cost
Opportunity Cost
Sacrifice of Resources
Cost that is charged against revenue in an accounting period
Past, present, or future cash outflow
Forgone benefit from the best (foregone) alternative course o…
Cost
Sacrifice of Resources
Expense
Cost that is charged against revenue in an accounting period
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