Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Chapter 5
Terms
| Term | Definition |
|---|---|
| Actual cost system | an approach that assigns actual costs of direct materials, direct labor, and overhead to products. |
| Adjusted cost of goods sold | the cost of goods sold after all adjustments for overhead variances are made. |
| Applied overhead | overhead assigned to production using predetermined rates. |
| Causal factors | activities or variables that invoke service costs. Generally, it is desirable to use causal factors as the basis for allocating service costs. |
| Common costs | the costs of resources used in the output of two or more services or products. |
| Department overhead rate | estimated overhead for a single department divided by the estimated activity level for that same department. |
| Direct method | a method that allocates service costs directly to producing departments. This method ignores any interactions that may exist among support departments. |
| Job | one distinct unit or set of units for which the costs of production must be assigned. |
| Job-order costing system | a costing system in which costs are collected and assigned to units of production for each individual job. |
| Job-order cost sheet | a subsidiary account to the work-in-process account on which the total costs of materials, labor, and overhead for a single job are accumulated. |
| Materials requisition form | a source document that records the type, quantity, and unit price of the direct materials issued to each job. |
| Normal cost of goods sold | the cost of goods sold before adjustment for any overhead variance. |
| Normal cost system | an approach that assigns the actual costs of direct materials and direct labor to products but uses a predetermined rate to assign overhead costs. |
| Overapplied overhead | the amount by which applied overhead exceeds actual overhead. |
| Overhead variance | the difference between actual overhead and applied overhead. |
| Plantwide overhead rate | a single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory. |
| Predetermined overhead rate | an overhead rate computed using estimated data. |
| Process-costing system | a costing system that accumulates production costs by process or by department for a given period of time. |
| Producing departments | units within an organization responsible for producing the products or services that are sold to customers. |
| Reciprocal method | a method that simultaneously allocates service costs to all user departments. It gives full consideration to interactions among support departments. |
| Sequential method | a method that allocates service costs to user departments in a sequential manner. It gives partial consideration to interactions among support departments. |
| Support departments | units within an organization that provide essential support services for producing departments. |
| Time ticket | a source document by which direct labor costs are assigned to individual jobs. |
| Underapplied overhead | the amount by which actual overhead exceeds applied overhead. |
Created by:
javi8392