Chapter 5 Key Terms

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Chapter 5 key terms for Cost/Managerial Accounting, Kinney & Raiborn 9th edition.
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Abnormal Loss is the loss that exceeds the normal expected level during the production process.
Cost-Plus Contract is a contract in which a contractor is paid for all of their allowed expenses up to a specified limit plus additional payments to allow a profit.
Defect is a faulty or substandard finished product; however the product can be reworked and sold.
Employee Time Sheet is a method used for recording and tracking the amount of time an employee spent working.
Intranet is a private networking communications system that can only be accessed by an organization's members, employees and/or other authorized personnel.
Job is a group of homogeneous tasks related by similarity of functions.
Job Order Cost Sheet is the document that represents the costs required to perform a particular job.
Job Order Costing System is the method of allocating costs to each job listed for production.
Material Requisition Form is a source document that the production department uses to request materials for the manufacturing process.
Normal Loss is an expected decline in efficient production that is unavoidable and inevitable during the production process.
Process Costing System the techniques used within the manufacturing industry to determine the total production cost of a unit of merchandise.
Shrinkage is the difference between the book amount and the actual amount of inventory due to theft, miscounting, employee error, or evaporation.
Spoilage is the waste or scrap arising from the production process.
Standard Cost System a tool used for planning budgets, managing and controlling costs, and evaluating cost management performance.
Variance is the difference between an actual measured result and a basis.
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