COST ACC
cost immediately charge to the particular manufacturing departments
direct departmental charge
cost originally charged to some manufacturing departments
indirect departmental charge
business expenses that are shared by multiple departments
common cost
distributes group costs to users as a share of the costs
stand alone method
overall common expenses are paid or held more heavily by the primary users
incremental method
each group pays or recieves only what they would have
shapley value method
arise when the same resources result in two or more diffirent products at the same time
joint cost
sales value less any separable expenses
net realizable value
adding up all the sales valur of product and dividing each sales value to get each percentage
relative sales value method
allocates joont costs to primary products based on physical characteristics
physical measure method
calculates prices by determining the differences between an item
constant gross margin net realizable value method
intented to benefit more tha one accounting period. recorded an assets
capital expenditures
will benefit current period only. recorded as an expenses
revenue expenditures
predetermined codt for labor, dm and factory overhead
standard cost
benefit forfeited when one option is chosen over another
opportunity cost
difference in cost between two possible decisions
differential cost
future cost that changes across alternatives
relevant cost
expenses incurred by employees that require a cash payment
out of pocket costs
money has already spent and cannot be recovered
sunk costs
phenomenon whereby is a reluctant to abandon a strategy
sunk costs fallacy
can be altered based on decisions n demands
controllable cost
cannot be changed to suit the demands or preferences of the business owner
uncontrollable cost
cost directly incurred in the productiin of goods
product cost
inventory or input material that a business needs to make is product
raw materials
take extra precautions to keep track of their inventory of raw msterials
manufacturing businesses
procedure in accounting stock valuation, carried out the scheduled intervals
periodic inventory system
opposed to a physical inventory. program that constinously assesses your inventory based on electronic records
perpetual inventory system
written request, ususlly sent to inform the purchasing department
purchase requisition
formal legal document that a buyer uses to place an order with a supplier
purchase order
used to document the contents of delivery to a business. filled out by receiving staff.
receiving report
describes the things what must be taken out of inventory and used in a certain jobs
material requisition form
ideal quantity of unit a company should purchase to meet demand while minimizing cost
economic order quantity
remind the payment to settle on time
credit sales
plan established by management
wage plan
employee's are calculated by multiplying the rate per hour by the number of hours worked
hourly rate plans
earnings are calculated by multiplying the outputs by the rate per peice
piece rate plans
combination of hourly and piece rate plans
modified wage plan
responsibility of the time keeping and payroll departments
maintaining the labor cost
cost of non-productive hours of driect labor
idle time or waiting time
when payments to an employee are based solely on the number units produced
make up pay
represent amount paid
overtime premuim
extra pay to work during less desirable evening shift
shift premuim
amounts remittef to different goverment
employee's payroll taxes