acc108 - chap 1 Flashcards
(30 cards)
Homogenous units pass through a series of similar processes.
PROCESS COSTING
Costs are accumulated by processing department.
PROCESS COSTING
Unit costs are computed by dividing the individual departments’ costs by the equivalent production.
PROCESS COSTING
The cost of production report provides the detail for the Work in Process account for each department.
PROCESS COSTING
Unique job are worked on during a time period
JOB ORDER COSTING
Costs are accumulated by individual job.
JOB ORDER COSTING
Unit cost are determined by dividing the total costs on the job cost sheet by the number of units on the job.
JOB ORDER COSTING
The job cost sheet provides the detail for the Work in Process account.
JOB ORDER COSTING
Some companies process large order of identical units as a group through the same production sequence.
BATCH
is a hybrid costing system often used in repetitive manufacturing where finished products have common, as well as distinguished characteristics.
Operation costing
Many manufacturing firms have production systems which are not suited for strictly job-order costing or process costing.
HYBRID COSTING SYSTEM
concerned with setting long range goals and objectives to determine the overall direction of the company.
Strategic planning
concerned with plans for a shorter range (or time period) and emphasizes plans to achieve the strategic goals.
Tactical planning
relates to the day-to-day implementation of tactical plans. It emphasizes the coordination of the major factors of production (materials, labor, and facilities)
Operations planning
is the process of establishing objectives or goals for the firm and determining the means by which the firm will attain them.
Planning
is the process of monitoring the company’s operations and determining whether the objectives identified in the planning process are being accomplished.
Control
is the intersection between financial and managerial accounting.
Cost accounting
information is needed and used by both financial and managerial accounting.
Cost accounting
provides product cost information to external and internal parties.
Cost accounting
focuses on the needs of parties within the organization, rather than interested parties outside the organization.
Managerial accounting
The information may be current or forecasted, quantitative or qualitative, monetary or non-monetary, and most of all timely. The data may be futuristic and some costs are not recorded on the accounting books of the organization.
Managerial accounting
is the use of accounting information for reporting to external parties, including investors, and creditors.
Financial accounting
The financial statements are the output from an accounting system.
Financial accounting
The reports prepared focus on the enterprise as a whole and are formal.
Financial accounting
