Managerial Accounting
Fantastic Furniture makes custom order couches. The material used to make a couch is a(n) ______ cost of the customer placing the order.
Direct
costs that cannot be easily and conveniently traced to that specific cost object are
Indirect costs
A SERVICE firm that would most likely use job-order costing is a ______.
Law Firm
The journal entry to record issuing materials to be used in production credits ______.
Raw materials
Which of the following is not a manufacturing cost category?
Selling & administrative costs
Which of the following would not be considered a direct labor cost in a service firm that uses job-order costing?
The salary of the manager at a hair salon
Costs of partially completed units are accounted for in ______.
Work in progress
Selling costs include ______.
advertising sales commission sales salary
The total cost of a job is calculated by adding the total of direct labor cost, direct materials cost and ______.
applied manufacturing overhead cost
The type and quantity of each type of direct material needed to complete a unit of product is listed on the ______.
bill of materials
Fixed costs that cannot easily be changed and often lock a company into a multi-year decision are called
committed
A type of indirect cost incurred to benefit more than one cost object is a(n) ______ cost.
common
Job-order costing would most likely be used in a(n) ______.
construction company
Any item for which cost data is desired is called a(n)
cost object
Labor costs that can be easily and conveniently traced to specific products are ______ costs.
direct labor
A laptop computer manufacturer would consider the computer's processor chip to be a(n) ______ cost.
direct material
Prime costs include ______.
direct material direct labor
Manufacturing costs include ______.
direct materials manufacturing overhead direct labor
Categories of manufacturing costs include ______.
direct materials, direct labor, manufacturing overhead
Selling and administrative costs are ______ costs.
direct or indirect
To calculate the unit product cost using the job cost sheet ______ by the number of units produced.
divide the total job cost
Completed units that have not yet been sold are found in
finished goods inventory
Costs assigned to units of product under absorption costing include ______.
fixed manufacturing variable manufacturing
Discretionary fixed costs include ______.
management training programs advertising
Direct materials and direct labor are both ______ costs.
manufacturing
Factory burden is a synonym for
manufacturing overhead
Factory costs such as cleaning supplies, taxes, insurance, and janitor wages are classified as ______.
manufacturing overhead
Companies that use job-order costing make ______.
many different products
The accrual concept that costs incurred to generate a revenue are expensed in the same period the revenue is recognized is known as the
matching principle
Direct materials costs are recorded on the job cost sheet when the ______.
materials are issued to the job
An allocation base is a(n) ______.
measure of activity used to assign overhead costs to products and services
The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find ______.
overhead applied to the job
The sum of direct materials and direct labor is called
prime cost
Direct materials, direct labor, and manufacturing overhead are all ______ costs.
product
Any purchased materials that will go into the finished product are first recorded in the
raw materials inventory account
A multiple predetermined overhead rate system is more accurate than a plantwide overhead rate system because it ______.
reflects differences in how overhead costs are incurred within departments
A journal entry that debits Advertising expense and credits Cash would record the incurrence of a ______.
selling cost
Cost behavior patterns such as salaried employees are often called
step-variable cost
Period costs are always expensed on the income statement in the period in which ______.
they are incurred
Committed fixed costs include ______.
top management salaries real estate taxes
