-
Job costing (p. 40)
Custom
A costing system that accumulates, tracks, and assigns costs for each job produced by a company
-
Process Costing (p. 41)
A costing system that accumulates and tracks costs for each process performed and then assigns those costs equally to each unit produced.
Homogeneous.
-
Operations Costing (p. 42)
A hybrid of job and process costing; used by companies that make products in batches.
Standardized withing batches.
-
Direct Materials (p. 43)
Direct material costs include the cost of the primary materials used in production, along with shipping costs and sales taxes.
-
Fringe Benefits (p. 44)
Payroll costs in addition to the basic hourly wage.
-
Idle Time (p. 44)
Worker time that is not used in the production of the finished product.
-
Overtime Premium (p. 44)
An additional amount added to the basic hourly wage owing to overtime worked by the workers.
-
Allocation (p.45)
The process of finding a logical method of assigning overhead costs to the products or services a company produces or provides.
-
Cost Drivers (p. 45)
Factors that cause, or drive, the incurrence of costs.
-
Cost pool (p. 46)
Groups of overhead costs that are similar; used to simplify the task of assigning costs to products with ABC costing.
-
-
Normal Costing (p. 47)
A method of costing using an estimate of overhead and predetermined overhead rates instead of the actual amount of overhead.
-
Predetermined Overhead Rate (for a cost pool) (p.48)
Used to apply overhead to products; calculated by dividing the estimated overhead for a cost pool by the estimated units of the cost driver.
-
Overapplied Overhead (p. 48)
The amount of applied overhead in excess of actual overhead.
-
Underapplied overhead (p. 48)
The amount of actual overhead in excess of applied overhead.
-
Equivalent units (p. 51)
The number of finished units that can be made from the materials, labor, and overhead included in partially completed units.
-
Conversion Cost (p. 52)
The costs of direct labor and overhead incurred to convert the direct materials to a finished product.
-
FIFO
In the FIFO method, the equivalent units and unit costs for the current period relate only to the work done and the costs incurred in the current period.
-
Weighted Average Method (p. 53)
In contrast,in the weighted-average method,the units and costs from the current period are combined with the units and costs from last period in the calculation of equivalent units and unit costs.
-
Production report (p. 56)
Report that provides a summary of the units moving through a processing department during the period as well as a computation of equivalent units of production and the costs per equivalent unit.
|
|
