Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
25 Cards in this Set
- Front
- Back
Cost Management System (CMS)
|
A collection of tools and techniques that identify how management's decisions affect costs, by first measureing the resources used in performing the organization's activities and then assessing the effects on costs of changes in those activities
|
|
Cost Accounting Systems
|
The techniques used to determine the cost of a product, service, customer, or other cost objective
|
|
Cost Accounting
|
That part of the cost managemtn system that measures costs for the purposes of management decision making and financial reporting
|
|
Cost Accumulation
|
Collecting costs by some natural classification such as activities performed, labor, or materials
|
|
Cost Assignment
|
Tracing or allocating costs to one or more cost objectives such as activities, departments, customers, or products
|
|
Cost
|
A sacrifice or giving up of resources for a particular purpose, frequently measured by the monetary units that an organization must pay for goods and services
|
|
Cost Objective
|
Anything tfor which decision makers desire a separate measurement of costs. Examples: departments, products, activities
|
|
Direct Costs
|
Costs that can be identified specifically and exclusively with a given cost objective in an economically feasible way
|
|
Indirect Costs
|
Costs that cannot be identified specifically and exclusively with a given cost objective in an economically feasible way
|
|
Cost Allocation
|
Assigning indirect costs to cost objects using plausible and reliable cost drivers
|
|
Unallocated Costs
|
Costs for which we can identify no relationship to a cost objective
|
|
Direct-Material Costs
|
The acquisition costs of all materials that a company identifies as a part of the manufactured goods and traces to the manufactured goods nin an economically feasible way
|
|
Direct-Labor Costs
|
The wages of all labor that a company can trace specifically and exclusively to the manufactured goods in an economically feasible way
|
|
Product Costs
|
Costs identified with goods producted or purchased for resale
|
|
Period Costs
|
Costs the become expenses during the current period without going through an inventory stage
|
|
Traditional Costing Systems
|
One that does not accumulate or report costs of activities or processes
|
|
Cost Pool
|
A group of individual costs that a company allocates to cost objectives using a single cost driver
|
|
Activity-Based Costing Systems
|
A system that first accumulates overhead costs for each of the activities of the area being costed, and then assigns the costs of activities to the products, services, or other cost objects that require that activity
|
|
Two-Stage ABC System
|
A costing system with two stages of allocation to get from the original cost to the final product or service cost. The first stage allocates resource costs to activity-cost pools. The second stage allocates activity costs to products or services
|
|
Activity-Based Management (ABM)
|
Using an activity-based costing system to improve the operations of an organization
|
|
Value-Added Cost
|
The necessary cost of an activity that cannot be eliminated without affecting a product's value to the customer
|
|
Non-Value-Added Costs
|
Costs that a company can eliminate without affecting a product's value to the customer
|
|
Benchmarking
|
The continuous process of comparing products, services, and activities against the best industry standards
|
|
Process Map
|
A schematic diagram capturing interrelationships between cost objects, activities, and resources
|
|
Multistage ABC Systems (MSABC)
|
Costing systems with more than two stages of allocations and cost drivers other than percentages
|