WGU D101 Cost and Managerial Accounting

WGU D101 Cost and Managerial Accounting Leave the first rating Students also studied Terms in this set (85) Western Governors UniversityD 216 Save D217 Accounting Information Syste...226 terms vanessa_harris263 Preview Cost and Managerial Accounting - ...99 terms PhintaPreview

D101 WGU FORMULAS

18 terms brandy_stahura Preview

D101 M

47 terms gxh Practice questions for this set Learn1 / 7Study using Learn Costs that change in total in a stairstep fashion (in large amounts) with changes in volume of activity Actual Manufacturing OverheadManufacturing costs other than direct materials and direct labor Applied Manufacturing OverheadThe amount of the manufacturing overhead that is assigned to the goods produced; this is usually done by using a predetermined annual overhead rate Choose an answer 1Mixed Costs2Stepped Costs 3Variable Costs4Product Costs Don't know?

Batch-level ActivitiesActivities that take place to support a batch or production run, regardless of the size of the batch Beginning Work-in-process InventoryThe ending-work-in-process inventory that is carried over from the last accounting period to the current accounting period Break-even PointThe amount of sales at which total costs of the number of units sold equal total revenues; the point at which there is no profit or loss Budgeted Production in UnitsThe budgeted number of units to be produced in a period, taking into consideration the sales volume, the number of units in beginning inventory, and the number of units required to be in ending inventory Budgeted Sales in DollarsThe result when the budgeted sales in units is multiplied by the unit sales prices for each product budgeted to be sold in the budget for the next year or the next period Budgeted Sales in UnitsInformation in the sales budget that feeds directly into the production budget, from which the direct materials and direct labor budgets are created Common CostsOverhead costs like executive salaries or property taxes that cannot be attributed to and are not the responsibility of specific products, departments, or business segments Contribution MarginThe difference between total sales and variable costs; the portion of sales revenue available to cover fixed costs and provide a profit Contribution Margin RatioThe percentage of net sales revenue left after variable costs are deducted; the contribution margin divided by net sales revenue Conversion CostsThe costs of converting raw materials to finished products; these include direct labor and manufacturing overhead costs Cost BehaviorThe way a cost is affected by changes in activity levels Cost DriverNumerical measure used to reflect the amount of a specific cost associated with a particular activity Cost ObjectsA product or division for which costs are accumulated and tracked Cost PoolTotal cost being generated by a specific overhead cost activity Cost of Goods ManufacturedTotal of all manufacturing costs Cost of Goods Manufactured ScheduleA schedule supporting the income statement that summarizes the total cost of goods manufactured and transferred out of the work-inprocess inventory account during a period; these costs include direct materials, direct labor, and applied manufacturing overhead

Cost of Goods SoldCost of products sold in a company, including costs of materials used to create product and labor costs Cost-volume-profit (CVP) AnalysisTechniques for determining how changes in revenues, costs, and level of activity affect the profitability of an organization Critical Resource FactorThe resource that limits operating capacity by its availability Differential CostFuture costs that change as a result of a decision; also called incremental or relevant costs Direct Materials BudgetA schedule of direct materials to be used during the budget period and direct materials to be purchased during that period Economies of ScaleA proportionate saving in costs gained by an increased level of production Ending Work-in-process InventoryCost of partially completed work at the end of an accounting period Equivalent Units of ProductionA method used in a process costing system to measure the production output during a period; essentially the "work done" by the center or department in terms of units of output Estimated Manufacturing OverheadBudgeted manufacturing overhead costs that are used to establish the predetermined overhead rate Facility Support ActivitiesActivities necessary to have a facility to participate in the development and production of products or services; activities are not related to any particular line of products or services Finished Goods InventoryInventory that has completed the production process and is ready for sale to customers Fixed CostsCosts that remain constant in total, regardless of activity level, at least over a certain range of activity Fixed Manufacturing Overhead ExpensesExpenses that do not vary with the amount or the level of budgeted or actual production within the relevant range that are needed to produce a product, including factory depreciation or rent Gross MarginThe excess of net sales revenue over the cost of goods sold Job Order CostingA method of product costing whereby each job, product, or batch of products is costed seperately Joint Manufacturing ProcessWhen one material input is used to produce more than one product Joint Product CostsThe costs that a firm incurs before the point at which the different products are separated for further processing or immediate sale

Labor Efficiency VarianceThe extent to which the actual labor used varies from the standard quantity; equal to the difference between the actual quantity of labor used and the standard quantity of labor allowed multiplied by the standard rate Labor Rate VarianceThe extent to which the standard labor rate varies from the actual rate for the quantity of labor used; equal to the difference between the standard rate and the actual rate multiplied by the quantity of labor used Management By ExceptionThe strategy of focusing attention on significant deviations from standard costs or expectations Manufacturing OrganizationsAny organization whose main economic activity involves using components or raw materials to make finished goods for sale to customers Manufacturing Overhead BudgetA schedule of production costs other than those for direct labor and direct materials Manufacturing Overhead RateThe rate at which manufacturing overhead costs are assigned to products; equals estimated manufacturing overhead costs for the period divided by the number of units of the activity base being used Master BudgetA network of many separate schedules and budgets that together constitute the overall operating and financing plan for the coming operating period.Materials Price VarianceThe extent to which the standard price varies from the actual price for the quantity of materials purchased or used; equal to the difference between the standard and actual prices multiplied by the quantity purchased or used Materials Quantity VarianceThe extent to which the actual quantity of materials varies from the standard quantity; equal to the difference between the standard quantity of materials allowed and actual quantity of materials used multiplied by the standard price Merchandising OrganizationsAny organization whose main economic activity involves purchasing finished goods and reselling them to customers Mixed CostsCosts that contain both variable and fixed costs components Operating LeverageThe extent to which fixed costs replace variable costs as part of a company's cost structure; the higher the proportion of fixed costs to variable costs, the faster income increases or decreases with changes in sales volume Opportunity CostThe benefits lost or forfeited as a result of selecting one alternative course of action over another OutsourcingAn arrangement in which one company provides services for another company that has historically performed those services for itself Overapplied Manufacturing OverheadThe excess of applied manufacturing overhead (based on a predetermined application rate) over the actual manufacturing overhead costs for a period