Chapter 2
Accounting 201 with Lill at University of Kansas
About this deck
By: Elise Shea
Textbook:
Managerial Accounting: Creating Value in a Dynamic Business Environment
Created: 2010-02-28
Size: 32 flashcards
Views: 15
Textbook:
Managerial Accounting: Creating Value in a Dynamic Business EnvironmentCreated: 2010-02-28
Size: 32 flashcards
Views: 15
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“Simply amazing. The flash cards are smooth, there are many different types of studying tools, and there is a great search engine. I praise you on the awesomeness.”
Dennis
Dennis
Sign up (free) to study this.
Cost
sacrifice made, usually measured by the resources given up, to achieve a particular purpose
product cost
cost assigned to goods that were either purchased or manufactured for resale
expense
using up of an asset
inventoriable cost
another term for product cost since a product cost is stored as the cost of inventory until the goods are sold
period costs
all costs that are not product costs
operating expenses
treated as period costs, costs of producing services
Raw-material
all materials before they are placed into production
Work-In Process
manufactured products that are only partially completed at the date when the balance sheet is prepared
finished goods
manufactured goods that are complete and ready for sale
mass-customization
many standardized components are combined in different ways to produce custom-made products to customer order
direct material
raw material that is consumed in the manufacturing process, is physically incorporated in the finished product and can be traced to products relatively easily
direct labor cost
cost of salaries, wages and fringe benefits for personnel who work directly on the manufactured products
manufacturing overhead
all other costs of manufacturing: indirect material, indirect labor and other manufacturing costs
indirect material
cost of materials that are required for the product process but do not become an integral part of the finished product
indirect labor
costs of personnel who do not work directly on the product, but whose services are necessary for the manufacturing process
service departments
departments that do not work directly on manufacturing products but are necessary for the manufacturing process to occur
conversion costs
direct labor and manufacturing overhead
prime costs
direct material and direct labor
cost of goods manufactured
total cost of direct material,direct labor and MOH transferred from work in process inventory to finished goods inventory
variable costs
changes in total in direct proportion to a change in the level of activity
fixed costs
remains unchanged in total as the level of activity varies
cost object
an entity, such as a particular product, service or department, to which a cost is assigned
direct cost
cost that can be traced to a particular cost object
indirect cost
cost that is to directly traceable to a particular cost object
controllable cost
costs that can be controlled or heavily influenced by manager
opportunity cost
benefit sacrificed when choice of one action precludes taking an alternative course of action
out-of pocket cost
costs that require the payment of cash or other assets as a result of their incurrence
sunk costs
costs that have been incurred in the past and no decision now or in the future can change that
differential cost
amount by which the cost differs under tow alternative actions
incremental cost
increase in cost from one alternative to another
marginal cost
extra cost incurred from one additional unit being produced
average cost per unit
total cost divided by number of units manufactured
About this deck
By: Elise Shea
Textbook: Managerial Accounting: Creating Value in a Dynamic Business Environment
Created: 2010-02-28
Size: 32 flashcards
Views: 15
Textbook:
Managerial Accounting: Creating Value in a Dynamic Business EnvironmentCreated: 2010-02-28
Size: 32 flashcards
Views: 15
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“Simply amazing. The flash cards are smooth, there are many different types of studying tools, and there is a great search engine. I praise you on the awesomeness.”
Dennis
Dennis