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Costs that are capitalized as inventory during completion of products are called:
product cost
Materials a company acquires to use in making products are called:
raw materials inventory
A direct cost is a cost that is:
Cost-effectively traceable to a cost object
The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as:
Overapplied overhead
The process of setting goals and making plans to achieve them is known as:
planning
Managerial accounting information:
Involves gathering information about costs for planning and control decisions
A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is
Product vs period
A management concept whose goal is to eliminate waste while “satisfying the customer” and “providing a positive return” to the company is called
Lean Business Model
Labor costs are classified as either
direct or indirect
Which of the following is not a direct cost for a scooter manufacturer?
office rent
The rate established before the start of a period that uses estimated overhead costs and an estimated activity base such as estimated direct labor, and that is used to apply estimated overhead to jobs, is the:
Predetermined overhead rate
A document that production managers use to request materials for production and shows the job number, the types of materials, and the quantities needed is a
Materials requisition
Period costs for a manufacturing company flow directly to
The income statement as an expense
Factory Overhead =
Factory Maintenance Salary + Depreciation on Factory Equipment + Indirect Materials + Factory Rent + Property Taxes on Factory
which of the following must be prepared before the direct labor budget?
production budget
an important tool in predicting how changes in cost and sales levels affect profit is
cost volume profit analysis
which of the following should not be considered when determining the production budget for an accounting period.
budgeted overhead
which of the following should not be considered when preparing a cash budget?
depreciation expense
a graph of unit volume and cost data is called a
scatter diagram
a plan that states the units to produce each period to meet budgeted sales and a desired inventory level
production budget
which of the following is not completed before a cash budget is prepared
budgeted income statement
the normal operating range for a business is called
relevant range of operations
a budget that reports expected cash receipts and cash payments related to the sale and purchase of plant assets
capital expenditures budget
The difference between actual price per unit of input and the standard price per unit of input results in a
Standard variance
A cost center is a unit of a business that incurs costs without directly generating revenues. All of the following are considered cost centers except:
Juice product line division at Coca Cola.
Costs that are incurred for the joint benefit of more than one department and cannot be readily traced to only one department are
indirect expenses
The amount by which a department's sales exceed its cost of goods sold and direct expense is
departmental contribution to overhead
Which of the following is not one of the perspectives used to analyze performance using the balanced scorecard?
number of employees
A cost that requires a future outlay of cash and is relevant for decision making, is a(n)
out-of-pocket cost
