Karteikarten
Key Terms
Karten in diesem Stapel (50)
- 1Costing systemThe system that an organisation has developed to collect information about costs and income so that it can be used to help with decision making, planning and control.
- 2Management accountingThe area of accounting that includes costing; it concentrates on providing internal information about the future in a form that is useful; it has no externally set rules that must be followed.
- 3Financial accountingThe area of accounting that includes bookkeeping; it concentrates on providing historic information that can be used internally and also provided to external parties.
- 4BudgetA future plan for an organisation, showing all the detail in financial terms; it is usually made up of various individual budgets.
- 5Cost classification by elementGrouping costs together according to the type of cost based on three categories - materials, labour and expenses.
- 6Cost classification by natureGrouping costs together according to whether they are direct costs or indirect costs.
- 7Direct costsCosts that are directly identified with the units of output.
- 8Prime costA term relating to the total of direct costs; it is often used to describe the total direct cost for a unit of output.
- 9Indirect costsCosts that are not directly identified with the units of output; these costs are divided into production and non production costs in a manufacturing business.
- 10Cost of productionA term relating to the total of direct costs and indirect production costs.
- 11Cost centreA section of an organisation to which costs can be charged. The number and type of cost centre would depend on the requirements of the organisation.
- 12Profit centresA section of an organisation to which costs can be charged, income can be identified and profits can be calculated.
- 13Investment centreA section of an organisation to which costs can be charged, income can be identified and investment can be measured.
- 14Coding systemA way of using unique headings to analyse data. They can also be used to place data in logical order if required.
- 15Numeric codeA code made up entirely of numbers.
- 16Alphabetic codeA code made up entirely of letters of the alphabet.
- 17Alpha-numeric codeA code made up of a combination of numbers and letters.
- 18AbsorptionMeans of incorporating indirect costs into costs of units of output.
- 19Absorption baseChosen method of absorption used by an organisation.
- 20Overhead absorption rateThe rate used to absorb overheads into products or services.
- 21Units of output methodA method of absorption based on dividing budgeted overheads by budgeted number of units to provide an overhead absorption rate per unit.
- 22Direct labour hours methodA method of absorption based on dividing budgeted overheads by budgeted direct labour hours to provide an overhead absorption rate per direct labour hour.
- 23Machine hours methodA method of absorption based on dividing budgeted overheads by budgeted machine hours to provide an overhead absorption rate per machine hour.
- 24Cost behaviourThe way that costs alter with changes in the level of output or activity.
- 25Fixed costsA cost that does not alter in total when the level of output or activity changes.
- 26Variable costsA cost that changes in proportion to the level of output or activity.
- 27Semi-variable costsA cost that contains both a fixed element and a variable element.
- 28High-low methodA technique for calculating the variable and fixed costs that comprise a semi-variable cost by analysing the total costs at two activity levels.
- 29Raw materialsThe materials bought by manufacturing organisations and used to manufacture the finished products.
- 30Work-in-progressThe name given to partly-completed items in a manufacturing organisation.
- 31Finished goodsThe items that have been manufactured and are ready for sale.
- 32First in First Out (FIFO)A method of inventory valuation that assumes goods will be used up in the order that they are acquired. This means that the remaining balance will be valued based on the prices of more recent purchases.
- 33Last in First Out (LIFO)This method of inventory valuation assumes that the most recently acquired inventory will be used first, leaving the earlier acquisitions to make up the value of the remaining balance. This does not have to correspond with the actual order of usage.
- 34Average cost (AVCO)This inventory valuation method involves calculating a new weighted average cost of goods each time that a new purchase is made, and using this valuation for subsequent issues and balances until further purchases are made.
- 35Manufacturing accountThis cost statement is produced at the end of a period to summarise costs under various categories.
- 36Direct materialsThis is calculated as the total of opening inventory of raw materials, plus materials purchased, minus closing inventory of raw materials.
- 37Direct costThe total of direct costs in a manufacturing account it is calculated by adding direct materials used in a manufacture to direct labour.
- 38Manufacturing costA subtotal made up of the total of direct cost and manufacturing overheads.
- 39Cost of goods manufacturedThis subtotal is the production costs of goods that have been completed and is made up of manufacturing cost adjusted for inventories of work-in-progress.
- 40Cost of goods soldA total based on the factory cost of goods manufactured which has been adjusted for inventories of finished goods.
- 41Time rateThe method of remuneration when payment is on the basis of time spent at work; it can be an hourly rate or based on a longer time period.
- 42Basic rateA time rate that is applied to the normal contracted work time, and is usually an hourly rate.
- 43Overtime rateThe rate paid for time worked in excess of the normal contracted time; it is usually at a higher rate than basic rate.
- 44PieceworkA payment system when the employee is paid for the work carried out; this does not take any account of the time taken.
- 45Bonus systemA system used in conjunction
- 46BudgetA financial planning document that is prepared in advance, and can be used to help monitor and control costs.
- 47VariancesThe difference between the actual data and the budgeted data.
- 48Adverse variancesIn a performance report when the actual income is lower than budget.
OR
In a performance report when the actual cost is higher than budget. - 49Favourable variancesIn a performance report when the actual cost is lower than budget.
OR
In a performance report when the actual income is higher than budget. - 50Significant varianceA variance that is brought to the managers attention for further investigation due to either its high monetary value or the high percentage of the variance from the budget data.
Informationen
- Beschreibung
- Elements of costing 2016 specification
- Erstellt von
- Katie Start
- Aufrufe
- 34
- Tags
- Bewertung