Study sets matching "cost accounting"

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Study sets matching "cost accounting"

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…
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 - 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…
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
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…
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
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
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
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…
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
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…
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
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
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
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
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
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
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
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
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
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
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…
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…
14 terms
Cost Accounting Ch 1
Cost Accounting
What is Planning?
What is control
What is a budget?
Measures and reports financial and nonfinancial data
1. Setting Goals 2. Predicting Results 3. Deciding How to Att…
1. Deciding & taking actions 2. Deciding on performance evalu…
Quantitative expression of a proposed plan of action
Cost Accounting
Measures and reports financial and nonfinancial data
What is Planning?
1. Setting Goals 2. Predicting Results 3. Deciding How to Att…
17 terms
Cost Accounting Chapter 5
Product Undercosting
Product Overcosting
Product-Cost Cross-Subsidization
Refined Costing System
A product consumes a high level of resources but is reported…
A product consumes a low level of resources but is reported t…
If a company undercosts one of its products, it will overcost…
Reduces the use of broad averages for assigning the cost of r…
Product Undercosting
A product consumes a high level of resources but is reported…
Product Overcosting
A product consumes a low level of resources but is reported t…
34 terms
Cost Accounting Chapter 6
Budget
Benefits of a budget
Cooordination
Communication
a) The quantitative expression of a proposed plan of action b…
~Promote coordination and communication among subunits within…
Is meshing an balancing all aspect of production or service a…
Is making sure those goals are understood by all employees
Budget
a) The quantitative expression of a proposed plan of action b…
Benefits of a budget
~Promote coordination and communication among subunits within…
Cost Accounting ch.1
Financial Accounting
Managerial Accounting
What is Management Accounting
C I M A
focus on external users and GAAP rules
focus on internal users and is not necessarily GAAP-driven
The process of identification, measurement, accumulation, ana…
Chartered Institute of Management Accountants
Financial Accounting
focus on external users and GAAP rules
Managerial Accounting
focus on internal users and is not necessarily GAAP-driven
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…
35 terms
Cost Accounting Test 1
Job costing is ________.
Answer the following questions using t…
Total manufacturing costs is comprised…
The approach often used when dealing w…
used by businesses to price unique products for different jobs
$5.25 Explanation: D) $420,000/80,000 mh = $5.25 per mh
direct materials cost, direct manufacturing labor costs, and…
write-off to cost of goods sold
Job costing is ________.
used by businesses to price unique products for different jobs
Answer the following questions using t…
$5.25 Explanation: D) $420,000/80,000 mh = $5.25 per mh
14 terms
Cost Accounting Chapter 20
Purchasing Cost
Ordering Cost
Carrying Cost
Stockout Cost
cost of goods acquired from suppliers including incoming frei…
The costs associated with ordering inventory, including the c…
costs associated with holding inventory
the costs incurred when a company runs out of a product, incl…
Purchasing Cost
cost of goods acquired from suppliers including incoming frei…
Ordering Cost
The costs associated with ordering inventory, including the c…
55 terms
Cost Accounting Exam 1
Managerial Accounting
Financial Accounting
Cost of Making a Product
Direct Materials
Future orientation, helps managers make decisions, No GAAP, d…
Follows GAAP rules, summarized information for external users.
DM, DL, FO
the direct and variable costs that can be traced back to the…
Managerial Accounting
Future orientation, helps managers make decisions, No GAAP, d…
Financial Accounting
Follows GAAP rules, summarized information for external users.
54 terms
Cost Accounting Chapter 7
1. A job is a product or service that…
2. Job cost sheets are used in account…
3. Job shops have three types of inven…
4. The cost in the ending Finished Goo…
TURE
TRUE
TRUE
FALSE
1. A job is a product or service that…
TURE
2. Job cost sheets are used in account…
TRUE
24 terms
Cost Accounting Chapter 10
account analysis method
r^2 (coefficient of determination)
t-stat
constant
Approach to cost function estimation that classifies various…
the closer to one the r2 is the better the fit is (the percen…
greater than 2 and less than -2 to indicate correlation (mean…
the component of total cost that within the relevant range do…
account analysis method
Approach to cost function estimation that classifies various…
r^2 (coefficient of determination)
the closer to one the r2 is the better the fit is (the percen…
Cost Accounting Chapter 9
absorption costing
direct costing
variable costing
super-variable costing
a method of inventory costing in which all variable manufactu…
another term used to describe variable costing
a method of inventory costing in which all variable manufactu…
another term used for throughput costing
absorption costing
a method of inventory costing in which all variable manufactu…
direct costing
another term used to describe variable costing
65 terms
Chapter 3 Cost Accounting
21. Cost-volume-profit (CVP) analysis…
22. Which of the following would not c…
23. If the fixed costs for a product d…
24. The Blue Company is currently sell…
C. Aids in evaluating tax planning alternatives.
C. Sales volume decreases.
B. b (Increased/Decreased)
B. decrease
21. Cost-volume-profit (CVP) analysis…
C. Aids in evaluating tax planning alternatives.
22. Which of the following would not c…
C. Sales volume decreases.
Cost Accounting Test 4
Standard Cost
A standard cost has 2 components:
A standard is like a norm.
Usefulness of Standard Costs
A standard cost is the predetermined cost of manufacturing a…
1) A physical standard... -which is a standard quantity of inpu…
A standard should be thought of as a norm for production inpu…
A standard cost system can be used in connection with either…
Standard Cost
A standard cost is the predetermined cost of manufacturing a…
A standard cost has 2 components:
1) A physical standard... -which is a standard quantity of inpu…
76 terms
Cost Accounting Final
what are the primary purposes of budge…
what is the master budget?
of the entire master budget (12 schedu…
what is the sales budget (schedule 1)?
1. planning... 2. communication and coordination (within organiz…
1. part of an overall organizational plan... 2. a set of interde…
10. budgeted schedule of cost of goods manufactured and sold…
detailed schedule showing expected sales for the coming perio…
what are the primary purposes of budge…
1. planning... 2. communication and coordination (within organiz…
what is the master budget?
1. part of an overall organizational plan... 2. a set of interde…
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…
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…
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
34 terms
Cost Accounting - Chapter 3
Cost Behavior
Fixed Cost
Variable Cost
Unit-Level Drivers
-The term used to describe whether a cost change when the lev…
-Costs that in total are constant within the relevant range a…
-Costs that in total vary in direct proportion to changes of…
-Explain changes in cost as units produced change... -Pounds of…
Cost Behavior
-The term used to describe whether a cost change when the lev…
Fixed Cost
-Costs that in total are constant within the relevant range a…
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…
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…
66 terms
Cost Accounting Chapter 8
21. Which of the following statements…
22. Which of the following organizatio…
23. The following examples briefly des…
24. An equivalent unit of conversion c…
B. Only B is true.
A. Gasoline refinery
C. c
B. start and complete a unit.
21. Which of the following statements…
B. Only B is true.
22. Which of the following organizatio…
A. Gasoline refinery
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
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