Term
| Actual Manufacturing Overhead |
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Definition
| actual amount of indirect manufacturing costs incurred during the period |
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Term
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Definition
| measurable item used to apply indirect overhead costs to products or services |
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Term
| Applied manufacturing overhead |
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Definition
| refers to manufacturing overhead expenses applied to units of a product during a specific period |
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Term
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Definition
| total amount of cost assigned to goods that were manufactured or completed during an accounting period |
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Term
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Definition
| expense account including the total cost of jobs or units sold during the period |
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Term
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Definition
| source document used to keep track of direct labor costs in a job order cost system |
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Term
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Definition
| costs that cannot be traced to a specific cost object or are not worth the effort to trace |
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Term
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Definition
| underlying measure of activity used in activity based costing to assign the indirect cost to products and services |
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Term
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Definition
| product costing method used by companies that have diverse products to which indirect costs are assigned based on the underlying activities performed |
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Term
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Definition
| activities performed for a group of units or customers all at once |
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Term
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Definition
| measure used to allocate or assign indirect costs to products |
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Term
| customer-level activities |
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Definition
| activities performed for a specific customer |
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Term
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Definition
| measure of the amount of work that occurred during the period |
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Term
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Definition
| document used to record all of the costs of producing a particular job or servicing a specific customer |
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Term
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Definition
| costing system used by companies that make unique products or provide specialty services |
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Term
| manufacturing overhead account |
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Definition
| all costs other than direct material and direct labor that must be incurred to manufacture a physical product |
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Term
| materials requisition form |
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Definition
| document used to authorize the issuance of materials into production; details the cost and quantities of all materials needed to complete specific jobs |
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Term
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Definition
| difference between actual and applied overhead when the overhead applied to Work in Process is higher than the actual overhead costs incurred during the period |
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Term
| predetermined overhead rate |
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Definition
| rate stimated before the accounting period begins and used throughout the period to assign overhead costs to products based on actual values of an allocation base |
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Term
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Definition
| costing system used by companies that make very homogenous products or services |
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Term
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Definition
| difference in actual and applied overhead that occurs when the overhead applied to Work In Process Inventory is less than the actual overhead cost incurred during the period |
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Term
| facility-level activities |
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Definition
| activities performed for the overall company |
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Term
| non-volume allocation measures |
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Definition
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Term
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Definition
| activities performed to support an overall product line |
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Term
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Definition
| essentially a summary of what occurred in the production process during the accounting period |
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Term
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Definition
| activities performed for each unit or customer (one at a time) |
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Term
| volume-based allocation measures |
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Definition
| allocation bases traditionally used to assign indirect costs that are directly related to number of units produced |
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Term
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Definition
| sum of direct materials and direct labor; represents the costs that can be directly traced to the end product |
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Term
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Definition
| sum of direct labor and manufacturing overhead; total cost incurred to convert direct materials into a finished product |
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Term
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Definition
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Term
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Definition
| measure of the amount of work that occurred during the period |
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Term
| what type of business would use job order costing |
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Definition
| used in companies that offer customized products or services, such as custom-built homes or custom-built ships |
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Term
| what type of business would use process costing |
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Definition
| used in companies that offer homogeneous products and services such as cans of soda |
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Term
| what types of information are posted on a job cost sheet |
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Definition
| Direct materials, Shipping and handling, Sales taxes, Supplies, Direct labor, Payroll taxes, Employee benefits, Outsourced costs, Allocated overhead costs |
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Term
| what form lists the quantity and cost of direct materials used on a specific job |
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Definition
| materials requisition form |
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