Managerial Accounting Chapter 3

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Author:
Drizzle
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282554
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Managerial Accounting Chapter 3
Updated:
2014-09-09 17:49:56
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Managerial Accounting
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Chapter 3
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  1. Bill of Materials
    A list of all of the raw materials needed to manufacture a job.
  2. Billing Rate
    The labor rate charged to the customer, which includes both cost and profit components.
  3. Cost Driver
    The primary factor that causes a cost.
  4. Cost-Plus Pricing
    A pricing approach in which the company adds a desired level of profit to the product's cost.
  5. Job Cost Record
    A written or electronic document that lists the direct materials, direct labor, and manufacturing overhead costs assigned to each individual job.
  6. Job Costing
    A system for assigning costs to products or services that differ in the amount of materials, labor, and overhead required.  Typically used by manufacturers that produce unique, or custom-ordered products in small batches; also used by professional service firms.
  7. Invoice
    Bill from a supplier.
  8. Labor Time Record
    A written or electronic document that identifies the employee, the amount of time spent on a particular job, and the labor cost charged to a job.
  9. Materials Requisition
    A written or electronic document that requests specific materials be transferred from the raw materials inventory storeroom to the production floor.
  10. Overallocated Manufacturing Overhead
    The amount of manufacturing overhead allocated to jobs is more than the amount of manufacturing overhead costs actually incurred; results in jobs being overcosted.
  11. Pick
    Storeroom workers remove items from raw materials inventory that are needed by production.
  12. Predetermined Manufacturing Overhead Rate
    The rate used to allocate manufacturing overhead to individual jobs; calculated before the year begins as follows: total estimated manufacturing overhead costs divided by total estimated amount of allocation base.
  13. Process Costing
    A system for assigning costs to a large number of identical units that typically pass through a series of uniform production steps.  Costs are averaged over the units produced such that each unit bears the same unit cost.
  14. Production Schedule
    A written or electronic document indicating the quantity and types of inventory that will be manufactured during a specified time frame.
  15. Purchase Order
    A written or electronic document authorizing the purchase of specific raw materials from a specific supplier.
  16. Raw Materials Record
    A written or electronic document listing the number and cost of all units used and received, and the balance currently in stock; a separate record is maintained for each type of raw material kept in stock.
  17. Receiving Report
    A written or electronic document listing the quantity and type of raw materials received in an incoming shipment; the report is typically a duplicate of purchase order without the quantity prelisted on the form.
  18. Stock Inventory
    Products normally kept on hand in order to quickly fill customer orders.
  19. Subsidiary Ledger
    Supporting detail for a general ledger account.
  20. Underallocated Manufacturing Overhead
    The amount of manufacturing allocated to jobs is less than the amount of manufacturing overhead costs actually incurred; this results in jobs being undercosted.

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