Exam 2 Flashcards Preview

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Flashcards in Exam 2 Deck (10):
1

Cost distortion

Occurs when some costs are over costed and others are under costed by the cost allocation

2

Plant wide overhead rate

Rate for every department is the same

3

Department overhead rate

Different rate for every department

4

Unit level activities

Spend cost for each and every individual unit

5

Batch level activities

Spend for each batch

6

Product level activities

Spend for each product line

7

Prevention cost

Avoiding poor quality

8

Appraisal cost

Detect poor quality goods

9

Internal failure

Fixing or disposing of poor quality goods

10

External failure

Fix poor quality goods after theyve already been delivered to customers