acct test 1

can be traced to cost objects

are expensed when incurred

the combination of direct materials and direct labor

fringe benefits

assets

include costs from only the production or purchases element of the value chain

allocated to cost objects

assigned to cost objects

include cost froms every element of the value chain

direct labor and manufacture overhead

cost of goods sold when sold

indirect costs of production

a single inventory acct

no inventory accounts

• 3; raw materials inventory
• works in process
• finished goods inventory

cost of merchandise and freight in

retails and wholesalers

raw materials inventory

finished goods innventory

the highest percentage of service companies costs

works in process inventory

total cost divided by the number of units

costs that can be influenced or changed by mngmt

combination of direct labor and manufacturing overhead

anything for which managers want a seperate cost measures

detailed engineering of products and services and the processes for producing them

a cost thyat can be traced to a cost object

delivery of products or services to customers

costs that stay constant despite wide changes in volume

a cost that relates to the cost object but cannot be traced to it

all man. costs other than direct materials and direct labor; also called factory overhead and indirect manufacturing cost

promotion and advertising of products or services

researching and developing new or improved products or svcs or the processes for producing them

a cost that has already been incurred

resources used to produce a product or service or to purchase finished merchandise intended for resale

goods that are partway through man. process but not finished

• all costs of a product that GAAP requires to treat as an asset (inventory) for external financial reporting
• these coss are not expensed until the product is sold

costs that are expensed in the period in which they are incurred often called operating expenses or selling genaral admin expenses

combo of direct material and direct labor costs

• system for assigning costs to products or svcs that differ in the amt of materials labor and overhead
• unique or custom made for customer

a system for assigning costs to a large number of identical units that typically pass thru a series of uniform production steps ; cereal

focuses on activities as the fundamental cost objects; costs of activities become building blocks for compiling the indirect costs of products svcs and customers

costs incurred to detect poor quality goods or services

activities and costrs incurred for every batch regardless of the number of units in the batch

seperate manufacturing overhead rates estab. for each department

costs incurred when the company does not detect poor-quality goods or services until after dlvry is made to customers

activities and costs incurred no matter how many units batches or products are produced in the plant

costs incurred when the company detects and corrects poor quality g and s before making dlvry to customerys

philosophy and business strategy of manufacture w/o waste

when overhead is allocated to every product using the same manufacturing overhead rate

costs incurred to avoid poor quality goods and svcs

activities and costs incurred for every unit produced

one of managements primaryresponsibilities evaluating the results of businsess operations against the plan and making adjustment

one of management primary responsibilities id possible courses of action and choosing among them

one of management primary responsiblities running the company on a day to day basis

• one of mgnmt primary responsisbilities
• setting goals and objectives for the company and deciding how to acheive them