Chapter 6 Flashcards
Fundamentals of Product and Service Costing (9 cards)
System to provide information about the costs of processes, products, and services used and produced by an organization.
cost management system
Cost per unit of the allocation base used to charge overhead to products
predetermined overhead rate
Process of first allocating costs to intermediate cost pools and then to the individual cost objects using different allocation bases.
two-stage cost allocation
Unit of a product that is easily distinguishable from other units.
job
Accounting system used when identical units are produced through a series of uniform production steps.
process costing
Accounting system that traces costs to individual units or to specific jobs, contracts, or batches of goods.
job costing
System that generally mass-produces a single, homogeneous output in a continuing process.
continuous flow processing
Hybrid costing system used in manufacturing goods that have some common characteristics and some individual characteristics.
operations costing
Standardized method or technique that is repeatedly performed in making a product.
operation
