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BUS 371 - Chapter 2 Terms
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- 1Product Costs/Inventoriable CostsRelated to making or acquiring the products or providing the services that directly generate the revenues of an entity
- 2Period CostsRelated to business functions other than production, such as selling and administrative
- 3Direct MaterialAny material that can be easily and economically traced to a product
- 4Actual Cost SystemActual direct material and actual direct labor costs are accumulated in Work in Process Inventory as costs are incurred
- 5CostReflects the monetary measure of resources consumed to attain an objective such as making a good or performing a service
- 6Unexpired CostThe balance sheet value of an asset
- 7Expired CostThe portion of an asset's value consumed or sacrificed during a period
- 8Cost Management SystemA set of formal methods developed for planning and controlling an organization's cost-generating activities relative to its strategy, goals, and objectives
- 9Cost ObjectAnything for which management wants to collect or accumulate costs
- 10Direct CostsConveniently and economically traceable to the cost object
- 11Relevant RangeThe assumed range of activity that reflects the company's normal operating range
- 12Variable CostA cost that varies in total proportionately with activity
- 13Fixed CostA cost that remains constant in total within the relevant range of activity
- 14Mixed CostCost that has both a variable and fixed component
- 15Step CostA cost that shifts upward or downward when activity changes by a certain interval or "step".
- 16PredictorAn activity that, when changed, is accompanied by a consistent, observable change in a cost item
- 17Cost DriverA predictor that has an absolute cause-and-effect relationship to a cost
- 18Overhead CostsIndirect Costs
- 19Direct LaborThe time spent by individuals who work specifically on manufacturing a product or performing a service
- 20Conversion CostsSum of direct labor and overhead costs
- 21Prime CostSum of direct material and direct labor cost
- 22Distribution CostAny cost incurred to warehouse, transport, or deliver a product or service
- 23ManufacturerAny company engaged in a high degree of conversion of raw material input into a tangible output
- 24Service CompanyA firm that uses a significant amount of labor to engage in a high or moderate degree of conversion
- 25Raw MaterialWork not started
- 26Work in ProcessWork started but not completed
- 27Finished GoodsWork Completed
- 28Prevention CostsCosts incurred to improve quality by precluding product defects and improper processing from occurring
- 29Appraisal CostsAmounts incurred for monitoring or inspecting
- 30Failure CostsThe inability to control quality results
- 31Cost AllocationThe assignment of an indirect cost to one or more cost objects using some reasonable allocation base or driver
- 32Normal Cost SystemCombines actual direct material and direct labor costs with overhead that is assigned using a predetermined rate or rates
- 33Predetermined Overhead Rate/ Overhead Application RateA charge per unit of activity that is used to allocate (or apply) overhead cost from the Overhead Control account to Work in Process Inventory for the period's production or services.
- 34Cost of Goods Manufactured (CGM)The total production cost of the goods that were completed and transferred to Finished Goods inventory during the period
- 35Total Costs to Account forBeginning Work in Process inventory cost is added to total current manufacturing costs to obtain a subtotal amount
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- Beschreibung
- BUS 371 - Chapter 2 Terms
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- Ms. Cassie Weitzenkamp, CPA, MPA
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