Flashcards
Chapter 2 Vocab Words Cost/Managerial Accounting
Cards in this deck (14)
- 1Absorption CostingA costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in unit product costs.
- 2Allocation BaseA measure of activity such as direct labor-hours or machine-hours used to assign costs to cost objects.
- 3Bill of MaterialsA document showing the quantity of each type of direct material required to make a product. (p. 62)
- 4Cost DriverA factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs.
- 5Cost-Plus PricingA pricing method in which a predetermined markup is applied to a cost base to determine the target selling price.
- 6Job Cost SheetA form that records the direct materials, direct labor, and manufacturing overhead cost charged to a job
- 7Job Order CostingA costing system used in situations where many different products, jobs, or services are produced each period.
- 8Materials Requisition FormA document specifying the type and quantity of materials to be drawn from the storeroom and the job charged for the cost of those materials.
- 9Multiple Predetermined Overhead RatesA costing system with multiple overhead cost pools and a different predetermined overhead rate for each cost pool, rather than a single predetermined overhead rate for the entire company. Each production department may be treated as a separate overhead cost pool.
- 10Normal Cost SystemA costing system that applies overhead costs to jobs by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job.
- 11Overhead ApplicationThe process of assigning overhead cost to specific jobs
- 12Plantwide Overhead RateA single predetermined overhead rate used throughout a plant
- 13Predetermined Overhead RateA rate used to charge manufacturing overhead cost to jobs that is established in advance for each period. It is computed by dividing the estimated total manufacturing overhead cost for the period by the estimated total amount of the allocation base.
- 14Time TicketA document that records the amount of time an employee spends on various activities.