Test Review Part 2 Ch 1-3 Flashcards
(17 cards)
A bill from a supplier
Invoice
A list of all of the raw materials needed to manufacture a job
Bill of materials
System for assigning costs to a specific unit of to a small batch of products or services that pass through production steps as a distinct identifiable job.
Job costing
A written or electronic document authorizing the purchase of specific raw materials from a specific supplier.
Purchase order
System for assigning cost to large numbers of identical units that usually proceed in a continuous fashion through a series of uniform production steps or processes.
Process Costing
A written or electronic that requests specific materials be transferred from raw materials inventory storeroom to the production floor
Materials requistion
A written or electronic documents listing the quantity and type of raw materials received in an incoming shipment.
Receiving report
A primary factor that causes a cost
Cost driver
A written or electronic document that lists the direct materials, direct labour, and manufacturing overhead costs assigned to each individual job.
Job cost record.
A written or electron document that identifies the employee, the amount of time spent on a particular job, and the labour cost charged to a job.
Labor time record
For a manufacturer that uses job costing, show the order of the cost flow.
- Raw Materials inventory
- Work In process inventory
- Finished goods inventory
- Cost of goods sold
How do variable costs behave?
The decrease as production decreases
Describe the way in which total fixed costs behave.
They will remain the same throughout production levels within the relevant range.
How do fixed costs per unit behave?
They increase as production decreases
Variable Costs
Are fixed per unit and very in total as production levels change.
Equations for costs available for sale
Purchases + Beginning inventory
Company’s total costs are calculated by
Adding total fixed costs to total variable costs
