Flashcards
Chapter 4 Key Words Cost/Managerial Accounting
Cards in this deck (8)
- 1Conversion CostDirect labor cost plus manufacturing overhead cost
- 2Equivalent UnitsThe product of the number of partially completed units and their percentage of completion with respect to a particular cost. Equivalent units are the number of complete whole units that could be obtained from the materials and effort contained in partially completed units.
- 3Equivalent Units of Production (weighted-average method)The units transferred to the next department (or to finished goods) during the period plus the equivalent units in the department’s ending work in process inventory.
- 4FIFO MethodA process costing method that calculates unit costs based solely on the costs and outputs from the current period.
- 5Operation CostingA hybrid costing system used when products have some common characteristics and some individual characteristics.
- 6Process CostingA costing method used when homogeneous products are produced on a continuous basis
- 7Processing DepartmentAn organizational unit where work is performed on a product and where materials, labor, or overhead costs are added to the product.
- 8Weighted-Average MethodA process costing method that calculates unit costs by combining costs and outputs from the current and prior periods.
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- All Eight words and their definitions
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- David Esch
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