Accounting Exam

A cost that varies in total but is fixed per unit for a certain period of time and range of activity

All costs that are accumulated in work in process eventually flow into finished goods, and when the products are sold, are recognized as cost of goods sold

Consist of direct materials, direct labor, and manufacturing overhead

Direct labor plus manufacturing overhead

the product costs which flow from work in process to the finished goods during an accounting period

Lends itself to the production of a large volume of homogenous products manufactured in a continual flow operation, such as distillation of fuels or manufacturing of paint

All costs necessary to bring a product to completion, regardless of the period in which they are incurred

All manufacturing costs not included in direct materials and direct labor, Includes indirect material, indirect labor, factory supplies, used factory payroll tax and fringe benefit costs, factory utilities, and factory building and machinery costs (depreciation, texes, repairs and maintenance)

Factory labor costs that can be easily traced to individual units of product. Includes salary and wage costs of factory employees who work directly on product

Typically the utilization of the facility's productive capacity for the year which mosts closely relates to the accumulation of overhead costs

A cost which is variable on a per unit basis for a particular period of time and range of activity

Direct materials plus Direct labor

The costs which differ between alternatives

Future benefit is given up when a choice is made

Only variable manufacturing costs are capitalized as inventory

By deducting all variable expenses from sales

Studying the relationship among sales, costs, and profits

It does not change when the volume of activity changes

The sum of resources related to a particular activity undertaken in response to a customer request or need

Is the characteristic selected for measuring the quantity of the activity for a particular period of time

Change proportionately with changes in volume of activity

This is the method of attaching all manufacturing costs to the product

Requires that a choice be made among alternatives

Considers revenues and expenses that differ among alternatives

A formal process that addresses and documents the overall mission and long term goals of the organization baesd on the vision statement

Presenting the projected cash flows as cash receipts and cash disbursments for a period of time

A detailed plan for the acquisition and use of finanacial resources during a specific period of time

A financial plan developed for a fixed level of operating activity

Operating expenses or costs traceable to and incurred for the benefit of a single department and thus ordinarily controllable by the department

A financial plan in the form of a cost formula or a multiple column presentation that makes cost projections for various acitvity levels within a relevant range

The costs that should be incurred under normal, efficient operating conditions to produce specific products or to perform specific services

Standard costs are carried in inventory accounts and the cost of goods sold account. The differences between standard costs and actual costs

Multiplying the direct materials standard quantity per unit by the direct materials standard price per unit

When comparing the actual cost of labor to the split cost of labor this will result

The quantitites of materials to be purchased to meet scheduled production and desired ending materials inventory requirements

Operating Expenses or costs incurred for the benefit of multiple departments and thus neither traceable to nor controllable by a specific depatment