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
mangerial accounting
| Question | Answer |
|---|---|
| step cost | a cost that remains constant over a certain activity range then jumps to a new cost EX: ordering another delivery truck when it reaches capacity |
| mixed cost | variable and fixed cost. (fixed +(variable rate x activity) EX: car rental w flat day fee but have to pay cost per mile |
| Discretionary fixed cost | Fized cost that management can adjust or eliminate without causing changes to company EX: advertising budget. Can change short term. Optional |
| Common fixed | fixed costs that support muli departmentsor whole company cant be traced to a single product company etc. EX:Ceos salary. Cant be changed short term, supports whole company |
| Relevant range | Range of activity over which cost behaviors hold true, fixed costs stay fixed, variable cost per unit remains constant. Important for accurate cost prediction, decision making and avoiding errors |
| Formula for cost behavior | y=a+bx ( y is total cost, a is fixed cost, b is variable cost per unit, x is activity level |
| what are the three methods used to estimate cost behavior | Account analyis - costs can be fixed variable or mixed, use knowledge of people High low method: b=(cost at highest activity level - cost at lowest activity level)/(highest activity -lowest activity) Regression analysis uses all data points |
| What are the strengths and weaknesses of account analysis will these methods always yield exactly the same results | Account anaylsis: Simple and inexpensive, uses expert knowledge, highly subjective, can misclassify costs like mixed |
| Strength and weaknesses of high low | High-low method: quick and simple, uses actual data points, only uses two points and ignores others.gives reasonable estimate outliers |
| strength and weaknesses of regression analysis | more accurate than other two methods, uses all data points, more complex, can be effected by extreme outliers |
| Why would a company use process costing rather than job order costing to compute product cost? | the company manufactures a product using a series of continuous processes that results in units that are virtually indentical from one to the next. |
| Predetermined overhead rate is | Estimated total manufacturing overhead/estimated total machine hours |
| What costs are recorded directly into the Work in process inventory account? | Direct Materials, Direct labor |
| Actual manufacturing overhead costs are recorded | on the left (debit) side of the manufacturing overhead account |
| how do you calculate over/underapplied overhead | Applied overhead-actual overhead = overapplied/underapp;ed then adjust cogs: unadjusted cogs-overapplied overhead - answer |
| Job order costing | unique products and services like construction projects, customized to the needs of the customer or client, costs accumulated by job/project/customer, job cost sheet for each unique job/project/customer |
| Process costing | Homogenuous products and services, mass produced with standardized process, costs accumulated by process, production report for each major process |
| prime costs | direct materials plus direct labor = total of your most direct prodution expenses |
| total manufacturing cost | dm+dl+moh |
| conversion cost | dl+moh |
Created by:
abbypennewell