Chapter 2/3 Flashcards Preview

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Flashcards in Chapter 2/3 Deck (34):
1

Value Chain

R/D, Design, Production/Purchases, Marketing, Distribution, Customer services

2

Cost Object

Anything that you want to know the cost of

3

Period cost

Every other section of Value chain

4

Product cost

Includes only the Product and purchases of the value chain

5

Product costs for Manufacturing

DM, DL, and MOH

6

Prime cost

DM+DL

7

Converesion cost

DL + MOH

8

Where do DM, DL, MOH go on the income statements?

Labeled as C.O.G.S. on the balance sheet's inventory

9

Where do period costs go?

Straight into the income statement

10

Income statement for merch/manu comp

Rev-C.O.G.S.= Gross Profit
Gross Pofit- Operating Ex= Operating Income

11

Service comp income statement

Rev- Operating Expensive= Operating income

12

What would the operating expense include?

Period Costs

13

Flow of inventory Merch company

Beg Inv + Purchases - C.O.G.S. = Ending Inventory

14

Raw Material Formula

Beg RM+ purchases -DM used = Ending RM

15

WIP formula

Beg WIP + DM/DL/MOH- C.O.G.M.= Ending WIP

16

Finished Good

Beg FG + C.O.G.M. - C.O.G.S. = Ending

17

Gross profit formula

REV-COGS=GP

18

Fixed Cost in Total

Remains constant

19

Variable Cost in Total

Changes directly

20

Fixed Cost per Unit

Changes indirectly

21

Variable Cost per Unit

Remains constant

22

Stock inventory

Stock of what a company sells on a regular basis

23

Production schedule

Indicates the quantity and types of inventory

24

Bill of materials

Losts all of the raw material needed to manufacture the job

25

Raw material record

Detailed information about each stock item

26

Purchase order

Sent to suppliers for any needed part

27

Recieving report

Where all incoming raw materials are recorded

28

Job cost record

Keeps track of all the direct materials and direct labor used on the job

29

Material requisition

Document itemizing the materials currently needed from the store room

30

Labor time records

Records the time spent by each employee on each job they've worked on

31

Process costing

Identical product ls made in large batches in an uniform process

32

Job costing

Unique products, smaller batches, differing procedures

33

Steps for MOH job costing

1. Estimate total MOH
2. A.b.
3. Divide step 1 by 2
3. Predetimined MOH X a.b. rate

34

Formula to find If it is under or over allocated

(Est. MOH/ Est. A.B.) -Actual MOH