Cost measurement Flashcards
1
Q
used when units are relatively expensive and costs can be identified to units or batches
A
job order costing
2
Q
used when units are relatively inexpensive and costs cannot be identified to units or batches
A
process costing
3
Q
Normal spoilage
A
Incurred during production. It is a product cost charged to COGS.
4
Q
Abnormal spoilage
A
Period cost, charged against income
5
Q
ABC Costing
A
MOH segregated into pools
Cost drivers identified for each pool
MOH applied using multiple rates
6
Q
Static budget
A
Budget for a specific level of activity
SQ x SP
7
Q
Used to estimate amounts at various levels of activity
A
Flexible budgets
AQ x SP
8
Q
The price at which products are transferred from on dept to another within the same company
A
Transfer pricing
9
Q
Relative sales value
A
Sales value - Separable costs
