Cost Ch 2 & 3

  1. Bonus Pay
    An amount paid to employees in addition to regular earnings for a variety of reasons, such as outstanding performance, as a result of higher-than-usual company profits.
  2. Contributory Plans
    Pension plans that require a partial contribution from the employees.
  3. Defined Benefit Plan
    Pension benefits paid to a retired employee based on the employee's past level of earnings and length of service with the company.
  4. Defined Contribution Plan
    A plan showing the maximum amount of contributions that can be made by employer and employee.
  5. Direct Labor
    The cost of labor for employees who work directly on the product being manufactured.
  6. Employee Earnings Record
    A form prepared for each employee showing the employee's earnings each pay period and cumulative earnings for each quarter and for the year.
  7. Federal Insurance Contributions Act
    Federal legislation requiring both employers and employees to pay social security taxes on wages and salaries.
  8. Federal Unemployment Tax Act
    Federal legislation requiring employers to pay an established rate of tax on wages and salaries to provide for compensation to employees if they are laid off from their regular employment.
  9. Holiday Pay
    An amount paid to employees for designated holidays on which the employee is not required to work.
  10. Hourly Rate Plan
    A wage plan under which an employee is paid an established rate per hour for each hour worked
  11. Incentive Wage Plan
    A wage plan modified to increase worker productivity by paying a bonus rate per hour when an employee meets or exceeds established production quotas.
  12. Labor Cost Summary
    A form showing the allocation of total payroll to Work in Process and Factory Overhead.
  13. Labor Time Record
    A record (usually a computer file) that shows an employee's time spent of each job.
  14. Make-up Guarantee
    An amount paid to employees under a modified wage plan when established production quotas are not met during a work period. The make-up guarantee is charged to the factory overhead account.
  15. Modified wage plans
    A wage plan that combines certain features of the hourly rate and piece-rate plans.
  16. Noncontributory plans
    Pension plans that are completely funded by the employer.
  17. Overtime Pay
    The amount earned by employees at the regular hourly rate for hours worked in excess of the regularly scheduled time.
  18. Overtime premium
    The additional pay rate earned for working hours in excess of the normal daily or weekly hours.
  19. Payroll Record
    A form prepared each pay period showing the earnings of all employees for the period.
  20. Payroll Taxes
    Taxes imposed on employers, including social security tax and federal and state unemployment taxes.
  21. Pension Costs
    The costs incurred by an employer to provide retirement benefits to employees.
  22. Piece-rate plan
    A wage plan under which an employee is paid a specified rate for each unit or "piece" completed.
  23. Production work teams
    A recent concept where output is dependent upon contributions made by all members of the work crew or department.
  24. Productivity
    The amount of output per hour of work.
  25. Shift premium
    An additional rate of pay added to an employee's regular rate as compensation for working an evening or night shift.
  26. Touch labor
    Category of factory payroll costs that can be traced directly to an individual job (also known as "direct labor").
  27. Vacation Pay
    An amount paid to employees during their vacation periods as part of the employees' compensation for services to the employer.
  28. Work Shift
    A regularly scheduled work period for a designated number of hours.
Card Set
Cost Ch 2 & 3
Accounting For Materials & Labor