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Description
Flashcards by Allison Cully, updated more than 1 year ago
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Created by Allison Cully
almost 9 years ago
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| Question | Answer |
| Actual Costing | A costing system that traces costs to a cost object based on the actual direct-cost rates times the actual quantities of the direct-cost inputs used. Indirect costs are allocated based on the actual indirect-cost rates times the actual quantities of the cost-allocation bases. |
| Actual Indirect-Cost Rate | Calculated by dividing actual total indirect costs in the cost pool by the actual total quantity of the cost-allocation base. |
| Adjusted Allocation-Rate Approach | Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates. |
| Budgeted Indirect-Cost Rate | Budgeted annual indirect costs _____________________________________________ Budgeted annual quantity of the cost-allocation base |
| Cost Allocation Base | A systematic way to link an indirect cost or group of indirect costs to cost objects. |
| Cost Pool | A grouping of individual indirect cost items; range from broad to narrow focus; often organized in conjunction with cost-allocation bases. |
| Job | In a ___-costing system, the cost object is a unit or multiple units of a distinct product or service. Each ___ generally uses different amounts of resources, and is often a single unit. |
| Job-Cost Record | Used to record and accumulate all the costs assigned to a specific job, starting when the work begins. |
| Job-Costing System | In this costing system, the cost object is a unit or multiple units of a distinct product or service called a job. Each job generally uses different amounts of resources and is often a single unit. It is used to accumulate costs separately for each product or service. |
| Labor-Time Sheet | The source document for direct manufacturing labor; contains information about the amount of labor used for a specific job in a specific department. |
| Manufacturing Overhead Allocated | The amount of manufacturing overhead costs allocated to individual jobs based on the budgeted rate multiplied by the actual quantity of the allocation base used for each job. |
| Materials-Requisition Record | A source document that contains information about the cost of direct materials used on a specific job and in a specific department. |
| Normal Costing | A costing system that traces direct costs to a cost object by using the actual direct-cost rates times the actual quantities of the direct-cost inputs and allocates indirect costs based on the budgeted indirect-cost rates times the actual quantities of the cost-allocation bases. |
| Overallocated Indirect Costs | Occurs when the allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount. |
| Process-Costing System | In this costing system, the cost object is masses of identical or similar unites of a product or service. In each period, these systems divide the total costs of producing an identical or similar product or service by the total number of units produced to obtain a per-unit cost. |
| Proration | This approach spreads underallocated overhead or overallocated overhead among ending work-in-process inventory, finished goods inventory, and cost of goods sold. Materials inventory is not included. |
| Source Document | An original record that supports journal entries in an accounting system. |
| Underallocated Indirect Costs | Occurs when the allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount. |
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