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