Module+2000+XI+Vocabulary

XI. Module 2000 Vocabulary ka **Vocabulary ** **Actual Cost ** **: ** //cost incurred (a historical or past cost), as distinguished from a budgeted or forecasted cost .// **Average Cost: ** another term for unit cost **Budgeted Cost: ** predicted or forecasted cost (future cost) as distinguished from an actual or historical cost **Conversion Costs: ** all manufacturing costs other than direct materials costs **Cost Accumulation: ** collection of cost data in some organized way by means of an accounting system **Cost Allocation: ** assignment of indirect costs to a particular cost object **Cost Assignment: ** general term that encompasses both (1) tracing accumulated costs that have a direct relationship to a cost object and (2) allocated accumulated costs that have an indirect relationship to a cost object **<span style="font-family: Georgia,serif; font-size: 12pt;">Cost Driver: **<span style="font-family: Georgia,serif; font-size: 12pt;"> a variable, such as the level of activity or volume, that casually affects costs over a given time span **<span style="font-family: Georgia,serif; font-size: 12pt;">Cost Object: **<span style="font-family: Georgia,serif; font-size: 12pt;"> anything for which a measurement of costs is desired **<span style="font-family: Georgia,serif; font-size: 12pt;">Cost of Goods Manufactured: **<span style="font-family: Georgia,serif; font-size: 12pt;"> costs of goods brought to completion, whether they were started before or during the current accounting period **<span style="font-family: Georgia,serif; font-size: 12pt;">Cost Tracing: **<span style="font-family: Georgia,serif; font-size: 12pt;"> describes the assignment of direct costs to a particular cost object **<span style="font-family: Georgia,serif; font-size: 12pt;">Cost: **<span style="font-family: Georgia,serif; font-size: 12pt;"> resource sacrificed or foregone to achieve a specific objective **<span style="font-family: Georgia,serif; font-size: 12pt;">Direct Costs of a Cost Object: **<span style="font-family: Georgia,serif; font-size: 12pt;"> costs related to the particular cost object that can be traced to that object in an economically feasible way **<span style="font-family: Georgia,serif; font-size: 12pt;">Direct Manufacturing Labor Costs: **<span style="font-family: Georgia,serif; font-size: 12pt;"> include the compensation of all manufacturing labor that can be traced to the cost object (WIP then FGs) in an economically feasible way **<span style="font-family: Georgia,serif; font-size: 12pt;">Direct Material Costs: **<span style="font-family: Georgia,serif; font-size: 12pt;"> acquisition costs of all materials that eventually become part of the cost object (work in process and then finished goods) in an economically feasible way **<span style="font-family: Georgia,serif; font-size: 12pt;">Direct Materials Inventory: **<span style="font-family: Georgia,serif; font-size: 12pt;"> direct materials in stock and awaiting use in the manufacturing process **<span style="font-family: Georgia,serif; font-size: 12pt;">Factory Overhead Costs: **<span style="font-family: Georgia,serif; font-size: 12pt;"> another term for indirect manufacturing costs **<span style="font-family: Georgia,serif; font-size: 12pt;">Finished-goods Inventory: **<span style="font-family: Georgia,serif; font-size: 12pt;"> goods completed but not yet sold **<span style="font-family: Georgia,serif; font-size: 12pt;">Fixed Costs: **<span style="font-family: Georgia,serif; font-size: 12pt;"> costs that remain unchanged in total for a given time period, despite wide changes in the related level of total activity or volume **<span style="font-family: Georgia,serif; font-size: 12pt;">Idle Time: **<span style="font-family: Georgia,serif; font-size: 12pt;"> wages paid for unproductive time caused by lack of orders, machine breakdowns, material shortages, poor scheduling, and the like **<span style="font-family: Georgia,serif; font-size: 12pt;">Indirect Costs of a Cost Object: **<span style="font-family: Georgia,serif; font-size: 12pt;"> costs related to the particular cost object that cannot be traced to that object in an economically feasible way **<span style="font-family: Georgia,serif; font-size: 12pt;">Indirect Manufacturing Costs: **<span style="font-family: Georgia,serif; font-size: 12pt;"> all manufacturing costs that are related to the cost object (work in process and then finished goods) but that cannot be traced to that cost object in an economically feasible way **<span style="font-family: Georgia,serif; font-size: 12pt;">Inventoriable Costs: **<span style="font-family: Georgia,serif; font-size: 12pt;"> all costs of a product that are considered as assets in the balance sheet when they are incurred and that become cost of goods sold only when the product is sold **<span style="font-family: Georgia,serif; font-size: 12pt;">Manufacturing Overhead Costs: **<span style="font-family: Georgia,serif; font-size: 12pt;"> another term for indirect manufacturing costs **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Manufacturing-sector Companies: **//<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">companies that purchase materials and components and convert them into various finished goods // **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Merchandising-sector Companies: **//<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">companies that purchase and then sell tangible products without changing their basic form // **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Operating Income: **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;"> //total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)// **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Overtime Premium: **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;"> //wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight time wage rates// **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Period Costs: **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;"> //all costs in the income statement other than cost of goods sold// **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Prime Costs: **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;"> //all direct manufacturing costs// **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Product Costs: **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;"> //sum of the costs assigned to a product for a specific purpose// **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Relevant Range: **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;"> //band of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question// **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Revenues: **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;"> //inflows of assets (usually cash or accounts receivable) received for products or services provided to customers// **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Service-sector Companies: **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;"> //companies that provide services or intangible products to their customers// **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Unit Cost: **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;"> //cost computed by dividing total cost by the number of units// **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Variable Cost: **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;"> //cost that changes in total in proportion to changes in the related level of total activity or volume// **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Work in Progress: **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;"> //another term for work-in-process// **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">Work-in-Process Inventory: **<span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;"> //goods partially worked on but not yet completed // <span style="color: #222222; font-family: Georgia,serif; font-size: 12pt;">

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