ACCT 2302 Test 1 Solved 100% Correct
Administrative Costs - ANSWER-All executive, organizational, and clerical costs
associated with the general management of an organization rather than with
manufacturing or selling.
Allocation base - ANSWER-A measure of activity such as direct labor-hours or
machine-hours that is used to assign costs to cost objects.
Amount underapplied= - ANSWER-actual overhead-amount applied to production
Bill of Materials - ANSWER-A document that shows the quantity of each type of direct
material required to make a product.
Common cost - ANSWER-A cost that is incurred to support a number of cost objects but
that cannot be traced to them individually.
conversion cost - ANSWER-direct labor cost plus manufacturing overhead cost
Conversion Cost - ANSWER-direct labor cost plus manufacturing overhead cost
Cost Behavior - ANSWER-the way in which a cost reacts to changes in the level of
activity
Cost driver - ANSWER-A factor, such as machine-hours, beds occupied, computer time,
or flight-hours, that causes overhead costs.
Cost object - ANSWER-Anything for which cost data are desired. Examples of cost
objects are products, customers, jobs, and parts of the organization such as
departments or divisions.
Cost of goods manufactured - ANSWER-the manufacturing costs associated with the
goods that were finished during the period
Cost of Goods Manufactured= - ANSWER-Total Manufacturing Costs+WIP, Beginning
Inventory-WIP, Ending Inventory
Cost of Goods Sold= - ANSWER-Cost of Goods Manufactured+Finished Goods,
Beginning Inventory-Finished Goods, Ending Inventory
cost of Raw Materials used in production= - ANSWER-Raw materials, Beginning
Inventory+Purchases of Raw Materials
, Decision Making Model - ANSWER-Formulating plans, implementing plans, measuring
performance, comparing
Differential Cost - ANSWER-A difference in cost between two alternatives.
Direct cost - ANSWER-a cost that can be easily and conveniently traced to a specified
cost object
Direct Labor - ANSWER-Factory labor costs that can be easily traced to individual units
of product. Also called touch labor.
Direct materials - ANSWER-Materials that become an integral part of a finished product
and whose costs can be conveniently traced to it.
equivalent units of production (weighted average method) - ANSWER-The units
transferred to the next department (or to finished goods) during the period plus the
equivalent units in the department's ending work in process inventory.
Equivalent Units= - ANSWER-Number of partially completed units*Percentage
Completion
The product of the number of partially completed units and their percentage of
completion with respect to a particular cost. Equivalent units are the number of
complete whole units that could be obtained from the materials and effort contained in
partially completed units.
Financial Accounting - ANSWER--emphasizes financial consequences of past
performance
-emphasizes objectivity and veriability
-emphasizes precision
-emphasizes summary data
-must follow GAAP
-mandatory for external reports
Finished Goods - ANSWER-units of product that have been completed but have not yet
been sold
Fixed Cost - ANSWER-a periodic charge that does not vary with business volume (as
insurance or rent or mortgage payments etc.)
Incremental Cost - ANSWER-An increase in cost between two alternatives. Also see
Differential cost.
Job cost sheet - ANSWER-A form prepared for a job that records the materials, labor,
and manufacturing overhead costs charged to that job
Administrative Costs - ANSWER-All executive, organizational, and clerical costs
associated with the general management of an organization rather than with
manufacturing or selling.
Allocation base - ANSWER-A measure of activity such as direct labor-hours or
machine-hours that is used to assign costs to cost objects.
Amount underapplied= - ANSWER-actual overhead-amount applied to production
Bill of Materials - ANSWER-A document that shows the quantity of each type of direct
material required to make a product.
Common cost - ANSWER-A cost that is incurred to support a number of cost objects but
that cannot be traced to them individually.
conversion cost - ANSWER-direct labor cost plus manufacturing overhead cost
Conversion Cost - ANSWER-direct labor cost plus manufacturing overhead cost
Cost Behavior - ANSWER-the way in which a cost reacts to changes in the level of
activity
Cost driver - ANSWER-A factor, such as machine-hours, beds occupied, computer time,
or flight-hours, that causes overhead costs.
Cost object - ANSWER-Anything for which cost data are desired. Examples of cost
objects are products, customers, jobs, and parts of the organization such as
departments or divisions.
Cost of goods manufactured - ANSWER-the manufacturing costs associated with the
goods that were finished during the period
Cost of Goods Manufactured= - ANSWER-Total Manufacturing Costs+WIP, Beginning
Inventory-WIP, Ending Inventory
Cost of Goods Sold= - ANSWER-Cost of Goods Manufactured+Finished Goods,
Beginning Inventory-Finished Goods, Ending Inventory
cost of Raw Materials used in production= - ANSWER-Raw materials, Beginning
Inventory+Purchases of Raw Materials
, Decision Making Model - ANSWER-Formulating plans, implementing plans, measuring
performance, comparing
Differential Cost - ANSWER-A difference in cost between two alternatives.
Direct cost - ANSWER-a cost that can be easily and conveniently traced to a specified
cost object
Direct Labor - ANSWER-Factory labor costs that can be easily traced to individual units
of product. Also called touch labor.
Direct materials - ANSWER-Materials that become an integral part of a finished product
and whose costs can be conveniently traced to it.
equivalent units of production (weighted average method) - ANSWER-The units
transferred to the next department (or to finished goods) during the period plus the
equivalent units in the department's ending work in process inventory.
Equivalent Units= - ANSWER-Number of partially completed units*Percentage
Completion
The product of the number of partially completed units and their percentage of
completion with respect to a particular cost. Equivalent units are the number of
complete whole units that could be obtained from the materials and effort contained in
partially completed units.
Financial Accounting - ANSWER--emphasizes financial consequences of past
performance
-emphasizes objectivity and veriability
-emphasizes precision
-emphasizes summary data
-must follow GAAP
-mandatory for external reports
Finished Goods - ANSWER-units of product that have been completed but have not yet
been sold
Fixed Cost - ANSWER-a periodic charge that does not vary with business volume (as
insurance or rent or mortgage payments etc.)
Incremental Cost - ANSWER-An increase in cost between two alternatives. Also see
Differential cost.
Job cost sheet - ANSWER-A form prepared for a job that records the materials, labor,
and manufacturing overhead costs charged to that job
