Save
Upgrade to remove ads
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
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

Accounting CH 15

TermDefinition
Cost accounting system A way of measuring, recording, and reporting product costs
Job order costing Specialized per customer order
Process costing Large volumes of similar products
What debits/credits raw materials inventory Debit is purchases Credit is DM and IM
What debits/Credits Factory labor Debit is Labor costs, benefits, payroll taxes Credit is DL and IL
Manufacturing Overhead Debits and Credits Debit is IM, IL, and Other Indirect Credit is Applications or estimates
What 3 components does a job cost sheet summarize DL, DM, MOH Applied
Predetermined overhead rate formula Estimated Annual Overhead Cost/Estimated Annual Operating Activity
Activity Any event, task, operation, business transaction, or work sequence that incurs overhead costs. These are activities that occur when the business is producing a product or performing a service.
Activity cost pool The overhead costs attributed to a distinct activity
Cost driver Any measurable factor or activity that has a direct cause-effect relationship with the resources consumed
Plantwide Method Overhead costs change with allocation base, all products use overhead in the same proportions
Departmental Method Different products are similar in volume, complexity, and production quantitates, Costs are proportional to department allocation base
Volume based measures Direct labor hours and machine hours
Activities that drive costs Machine set up, material order, design change, labor hour
Journal entry for Purchased raw materials on credit Debit Raw materials inventory Credit accounts payable
Journal entry to close underapplied overhead Debit Cost of goods sold Credit Factory overhead
Journal entry to close overapplied overhead Debit Factory overhead Credit Cost of goods sold
Journal entry: Sold job 240 on credit Debit accounts receivable Credit Sales
Journal entry: Cost of goods sold Debit: Cost of goods sold Credit: Finished goods inventory
What do you do when you are asked for product cost per unit Divide the DM, DL, and OH by units and add all 3 together
True or False: Overhead costs are not allocated by means of arbitrary volume-based cost drivers under ABC False, ABC uses volume based cost drivers
True or False: Activity-based costing does not change the amount of overhead costs, but it does allocate those costs in a more accurate manner True
True or False: Under ABC, overhead costs are shifted from the high-volume product to the low-volume product True
What is a high-volume product Process
Low-volume product Job order
True or False: Before costs are allocated to the cost pools, the cost drivers for each cost pool must be identifiesd False, after ( you have to create the cost pools before you determine your cost driver)
True or False: Value-added activities increase the worth of a product or service to customers and involve resource usage that customers are willing to pay for True, adding value increases the worth
Economic events Cause changes in the financial position of the company
Net Realizable value Estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation
Current cost Cost that would be incurred to purchase or reproduce the asset
Present value The current value of future cash flows, calculated by applying the time value of money
Fair value Bases measurements on the price that would be received to sell assets or paid to transfer liabilities in an orderly market transaction
Interest formula Principal x Rate x (months/12)
Created by: sekavecr
 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards