Operational Planning

Question 1

Process costing

Job order costing

Similar Objective

Answer 1

is a system of accounting for production in which costs are assigned to units of finished goods indistinguishable from each other and produced in a continuous process.

is a system of accounting for production in which costs are assigned to particular units or batches of finished goods.

The objective is to determine the manufacturing cost per unit for inventory valuation

Question 2

When is factory OH applied

Answer 2

WIP stage, once completed no work is done on it

Question 3

Manufacturing Cost

Answer 3

DL + DM + MOH

Question 4

By product sales offset

Answer 4

REDUCE JOINT COSTS

Question 5

Cost of protection

Answer 5

probability % * (mkt value if w/ - market value w/o)

Question 6

FIFO

Answer 6

subtract BI

Question 7

overhead RATE

Answer 7

costs/driver = overhead rate * actual DLHS

Question 8

Conversion Costs

Answer 8

Conversion costs are manufacturing costs required to convert raw materials into a finished product:

Direct labor + Manufacturing overhead

Question 9

backflush

Answer 9

removal of the standard cost of finished products from the work-in-process inventory upon completion. The effect is to significantly decrease the detail of costs tracked to jobs.

Question 10

FIFO BI

Answer 10

only subtracted for EQUIVALENT UNITS NOT PERIOD COSTS