cost accounting systems

A branch of managerial accounting concerned with accumulating manufacturing costs for financial reporting and decision-making purposes.

is prepared when materials that have been ordered are received and inspected. It is posted as a journal entry when invoice is received.

(usually):

-debit materials

-credit accounts payable

Form of electronic transmission used by a manufacturing dept. to authorize materials issuances from the storeroom. Basis for recording materials used.

(usually): 

-debit work in progress

-credit materials

the process of assigning indirect cost to a cost object, such as a job

a measure of activity that is related to changes in cost. Used in analyzing and classifyling cost behavior. Activity bases are also used in the denominator in calculating the predetermined factory overhead rate to assign overhead cost to cost objects

-should reflect the consumption of use of factory overhead costs

Factory overhead costs are normally allocated or applied to jobs using this rate...

pdFOVH rate: estimated total factory overhead costs/ estimated activity base= $