Download DRURY Cost Accounting CH 7 Assignement Latest Update!! and more Exams Accounting in PDF only on Docsity!
DRURY Cost Accounting CH 7 Assignement Latest Update!!
Direct cost tracing - ANSWER>>the process of directly assigning a cost to a cost object
Direct costing system // Variable costing system // marginal costing system - ANSWER>>a costing system in which only direct manufacturing costs, not fixed manufacturing costs, are assigned to products or services.
Direct labour hour rate - ANSWER>>an hourly overhead rate determined by dividing cost centre overheads by the number of direct labour hours.
First-stage allocation bases - ANSWER>>The various bases, such as area, book value of machinery and number of employees, used to allocate indirect costs to production and service centres.
Fixed overhead expenditure variance - ANSWER>>The difference between the budgeted fixed overheads and the actual fixed overhead spending.
Job-order costing system - ANSWER>>A method of assigning costs to products or services which is applied when numerous different products or services are manufactured.
Machine hour rate - ANSWER>>An hourly overhead rate that is arrived at by dividing the cost centre overheads by the number of machine hours.
Overhead analysis sheet - ANSWER>>A form used to allocate manufacturing overheads to production and service cost centers
Overheads - ANSWER>>The term used to describe indirect costs, the costs which cannot be traced directly to the cost object in question
Service departments // support departments - ANSWER>>Departments of an organization, which exist simply to serve or support other segments of the entity
Traditional costing systems - ANSWER>>Costing methods commonly in place, which make arbitrary allocations subject to the costs of the Indirect costs TO THE cost object.
Under- or over-recovery of overheads - ANSWER>>The difference between the overheads that are allocated to products or services during a period and the actual overheads that are incurred
Volume variance - ANSWER>>The difference between actual production and budgeted production for a period multiplied by the standard fixed overhead rate.
Absorption costing system - ANSWER>>A costing system that assigns all manufacturing costs, both variable and fixed manufacturing costs, to products and values unsold stocks at their full cost of production.
Activity-based costing (ABC) - ANSWER>>A costing method that tries to use more cause-and-effect allocations by tracing costs to activities.
Allocation base - ANSWER>>The basis for assigning costs to cost objects
arbitrary allocation - ANSWER>>The assignment of costs using a cost base that is not a significant determinant of cost
Blanket overhead rate // Plant-wide rate - ANSWER>>An overhead rate that assigns indirect costs to cost objects using a single overhead rate for the whole organization, also called plant-wide rate.
Budgeted overhead rate - ANSWER>>An overhead rate based on estimated annual expenditure on overheads and levels of activity.
