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Process Costing
a company produces many units of a single product
Job-order Costing
many different products are produced each period and are manufactured to order.
Predetermined overhead rate
used to apply overhead to jobs is determined before the period begins
Estimated cost / Estimated units
Predetermined overhead rate
Cost driver
a metric, such as the amount or volume of something or the level of an activity, that causally affects the level of a cost over a given time span.
POHR x Actual activity
Manufacturing overhead applied
Unit cost
calculated by dividing the total cost by the related number of units produced
Finished goods
transferred from the production departments to the finished goods warehouse when a job has been completed
Normal costing
a system in which overhead costs are applied to a job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job
Note 
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