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47 Cards in this Set
- Front
- Back
an expired cost |
portion of an asset that was consumed during a period |
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relationship between variable cost and per unit basis as production increases |
remains constant |
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relationship between variable cost and total cost basis as production increases |
varies |
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relationship between fixed cost and per unit basis as production increases |
varies |
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relationship between variable cost and total cost basis as production increases |
constant |
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relevant range |
normal operating range |
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two primary cost behaviors in relevant range |
fixed and variable |
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type of cost that can be easily traced to a cost object |
direct cost |
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type of cost that can not be easily traced to a cost object |
indirect cost |
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cost object |
anything for which management wants to accumulate or collect costs |
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step cost |
cost increases or decreases in intervals as activity changes |
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another name for inventoriable costs |
product |
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three stages of production for a manufacturing firm are |
raw materials, work in process, finished goods |
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prevention costs |
costs incurred to improve quality by precluding defects and improper processing |
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appraisal costs |
costs incurred for monitoring or inspecting products |
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failure costs |
costs that result from defective units, product returns, and complaints |
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the term 'relevant range' used in cost accounting means |
the range over which cost relationships are valid |
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variable cost behavior: total cost reaction to increase in activity |
increases |
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variable cost behavior: cost per unit reaction to increase in activity |
remains constant |
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prime costs |
direct materials plus direct labor |
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when cost relationships are linear total variable prime costs will vary in proportion to changes in |
production volume |
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example of fixed cost |
straight line depreciation, insurance, and supervisors salary |
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when the number of units manufactured increases, the most significant change in unit cost will be reflected as a |
decrease in the fixed element |
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cost driver |
direct cause-effect relationship to a cost |
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product costs are deducted from revenue |
as goods are sold |
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a selling cost is a |
period cost |
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when are period costs generally expensed |
same period in which they were incurred |
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period costs include |
distribution costs and sales commission |
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cost of goods sold is what type of cost |
expired product cost |
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what are overhead costs |
indirect costs of converting raw materials into finished goods |
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DM DL direct production costs or indirect production costs which would need to be allocated to a cost object? |
indirect production costs |
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Broussard Company is a construction company that builds houses on special request. What is the proper classification of the carpenters' wages? |
product costs and direct costs |
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Broussard Company is a construction company that builds houses on special request. What is the proper classification of the cost of the cement building slab used? |
direct costs |
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Broussard Company is a construction company that builds houses on special request. What is the proper classification of indirect material used? |
conversion cost and variable cost |
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all costs related to the manufacturing function in a company are |
product cost |
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plastic used to manufacture dolls is a |
prime cost, product cost, and direct cost |
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conversion of inputs to outputs is recorded in the |
work in process inventory account |
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formula to compute cost of goods manufractured |
beginning work in process inventory + direct labor + direct material used + overhead incurred - ending work in process inventory |
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the final figure in the Schedule of Cost of Goods Manufactured represents the |
total cost of goods completed for the period |
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formula to compute cost of goods sold for a manufacturer is |
beginning finished goods inventory + cogm - ending finished goods inventory |
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calculate cost of raw material purchased during the year |
raw materials used + ending raw materials - beginning raw materials |
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calculate raw materials used during the month |
beginning raw material inventory + purchases - ending raw material inventory |
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example of variable cost |
direct material, direct labor, and possibly utilities |
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product cost |
associated with making or acquiring inventory |
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example of product cost |
direct material, direct labor, overhead |
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period cost |
any cost other than those associated with making or acquiring product and is not considered inventory |
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example of period costs |
selling and administrative expenses |