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;
59 Cards in this Set
- Front
- Back
Activity |
Any event, action, transaction, or work sequence that incurs costs when producing a product or performing a service. |
|
Activity cost pool |
The overhead cost after buted to a distinct type of activity or related activities. |
|
Activity based costing (ABC) |
A method of allocating overhead based on each product's use of activities in making the product. |
|
Activity based management |
Extends ABC from product costing to a comprehensive management tool that focuses on reducing costs and improving processes and decision making. |
|
Balanced Scoreboard |
A performance measurement approach that uses both financial and non financial measures, tied to a company's objectives, to evaluate a company's operations in an integrated fashion. |
|
Batch level activities |
Activities performed for each batch of products rather than for each unit. |
|
Board of directors |
The group of officials elected by the stockholders of a corporation to formulate operating policies and select officers who will manage the company. |
|
Chief executive officer (CEO) |
Corporate officer who has overall responsibility for managing the business and delegates responsibilities to other corporate officers. |
|
Chief financial officer |
Corporate officer who is responsible for all of the accounting and finance issues of the company. |
|
Controller |
Financial officer responsible for a company's accounting records, system of internal control, and preparation of financial statements, tax returns, in internal reports. |
|
Conversion Costs |
The sum of labor costs and overhead costs. |
|
Corporate social responsibility |
The efforts of a company to employ sustainable business practices with regards to its employees, society, and the environment. |
|
Cost accounting |
An area of accounting that involves measuring, recording, and reporting product costs. |
|
Cost accounting system |
Manufacturing cost accounts that are fully integrated into the general ledger of a company. |
|
Cost Driver |
Any factor or activity that has a direct cause effect relationship with the resources consumed. In ABC, cost drivers are used to assign activity cost pools to products or services. |
|
Cost of goods manufactured |
Total cost of work in process less the cost of ending work in process inventory. |
|
Cost reconciliation schedule |
A schedule that shows that the total costs accounted for it will the total cost to be accounted for. |
|
Direct labor |
The work of factory employees that can be physically and directly associated with converting raw materials into finished goods. |
|
Direct materials |
Raw materials that can be physically and directly associated with manufacturing the finished product. |
|
Enterprise resource planning system |
Software that provides a comprehensive Commerce centralized, integrated source of information used to manage all major business processes. |
|
Equivalent units of production |
A measure of work done during the period, expressed in fully completed units. |
|
Facility level activities |
Activities required to support or sustain an entire production process |
|
Indirect labor |
Work a factory employs that has no physical association with the finished product or for which it is impractical to trace the costs to goods produced. |
|
Indirect materials |
Raw materials I do not physically become part of the finished product or for which it is impractical to trace to the finished product because their physical association with the finished product is too small. |
|
Job cost sheet |
A form used to record the costs chargeable to a specific job and to determine the total and the unit costs of the completed job. |
|
Job order cost system |
A cost accounting system in which costs are signed a to each job or batch. |
|
Just in time inventory |
Inventory system in which goods are manufactured or purchased just in time for sale. |
|
Just in time processing |
A processing system dedicated to having the right amount of materials, parts, or products arrive as they are needed, thereby reducing the amount of inventory. |
|
Line Positions |
Jobs that are directly involved in a company's primary revenue generating operating activities. |
|
Managerial accounting |
A field of accounting that provides economic and financial information for managers and other internal users. |
|
Manufacturing overhead |
Manufacturing costs that are indirectly associated with the manufacturer of the finished product. |
|
Materials requisition slip |
A document authorizing at the issuance of raw materials from the store room to production. |
|
No value added activity |
Activity that, if eliminated, would not reduce the perceived value of a company's product or service. |
|
Operations costing |
A combination of a process cost and a job order cost system in which products are manufactured primarily by standardized methods, with some customization. |
|
Over applied overhead |
A situation in which over had assigned to work in process is greater than the overhead incurred. |
|
Period Costs |
Costs that are matched with the revenue of a specific time period and charged to expense as Incurred. |
|
Physical units |
Actual units to be accounted for during a period, irrespective of any work performed. |
|
Pre determined overhead rate |
A rate based on the relationship between estimated annual overhead costs and expected annual operating activity, expressed in terms of a common activity base. |
|
Process cost system |
A cost accounting system used when a company manufactures a large volume of similar products. |
|
Product costs |
Costs that are a necessary and integral part of producing the finished product. |
|
Product level activities |
Activities performed in support of an entire product line but not always performed every time a new unit or batch of products is produced. |
|
Production cost report |
An internal report for management that shows both production quality and cost data for a production department. |
|
Sarbanes-Oxley Act |
Law passed by Congress intended to reduce unethical corporate behavior |
|
Staff positions |
Jobs that support the efforts of line employees. |
|
Theory of constraints |
A specific approach used to identify and manage constraints in order to achieve the company's goals. |
|
Time ticket |
A document that indicates that the employee karma the hours worked, the account and job to be charged, and the total labor cost. |
|
Total cost of work in process |
Cost of the beginning work in process plus total manufacturing cost for the current period. |
|
Total manufacturing costs |
The sum of direct materials, direct labor, and manufacturing overhead incurred in the current period. |
|
Total quality management |
Systems implemented to reduce defects in finished products with the goal of achieving 0 defects. |
|
Total units (costs) accounted for |
The some of the units (costs) transferred out during the period plus the units (costs) in process at the end of the period. |
|
Total units (costs) to be accounted for |
The some of the units (costs) started (or transferred) into production during the period plus the units (costs) in process at the beginning of the period. |
|
Treasurer |
Financial officer responsible for custody of a company's funds and for maintaining its cash position. |
|
Triple bottom line |
The evaluation of a company's social responsibility performance with regard to people, planet, and a profit. |
|
Under applied overhead |
A situation in which overhead assigned to work in process is less than the overhead incurred. |
|
Unit production costs |
Costs expressed in terms of equivalent units of production. |
|
Unit level activities |
Activities performed for each unit of production. |
|
Value chain |
All business processes associated with providing a product or performing a service. |
|
Value added activity |
An activity that increases the perceived value of a product or service to a customer. |
|
Weighted average Method |
Method of computing equivalent units of production which considers the degree of completion (weighing) of the units completed and transferred out and the ending work in process. |