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Cost Accounting Test 2

The document provides definitions and examples for various terms related to cost accounting. It defines key steps in process costing such as assigning costs to inventory accounts, calculating equivalent units of production, physical units accounted for, and total cost. It also defines variances like efficiency variance and spending variance. Finally, it distinguishes between types of costing systems like job order costing, process costing, and hybrid costing and gives examples of each.

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82 views1 page

Cost Accounting Test 2

The document provides definitions and examples for various terms related to cost accounting. It defines key steps in process costing such as assigning costs to inventory accounts, calculating equivalent units of production, physical units accounted for, and total cost. It also defines variances like efficiency variance and spending variance. Finally, it distinguishes between types of costing systems like job order costing, process costing, and hybrid costing and gives examples of each.

Uploaded by

agm25
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Cost Accounting Test 2

Study online at quizlet.com/_2nf5pp

1. Assign costs to Sixth step in process costing 17. sales, production, direct labor, Order of budgeting
inventory factory overhead, capital (separate with commas)
accounts budget, purchasing budget,
nonfactory expense, cash, pro
2. calculate Third step in process costing
forma financial statements
equivalent units
of production 18. spending variance variance for overhead
costs
3. calculate physical Second step in process costing
units accounted 19. Standard A benchmark or norm
for used for planning and
control
4. calculate physical First step in process costing
units to account 20. strategic panning long-term planning that
for may extend ten years,
performed at a high level
5. calculate the cost Fifth step in process costing
per equivalent 21. tactical planning short-term planning that
unit of produces "single-use"
production plans such as the annual
budget
6. calculate total Fourth step in process costing
cost to account 22. volume variance variance for production
for costs
7. efficiency variance for machinery and production 23. Weighted Average method In process costing, the
variance costs cost per equivalent unit of
production which will
8. favorable not necessarily a good variance
include both prior period
variance
costs and current period
9. flow of costs for 1) Raw materials, 2) WIP, 3) FGI, 4) costs
job order costing COGS
10. Hybrid method of Ex. Auto maker - some basic
process costing components used in production but
made with customizable job orders and
options
11. Job order costing Ex. Dental Practice, auto repair, custom
steel work
12. management by range of variances that are considered
exception acceptable, issue considered when costs
fall outside the range
13. Management 1) Assists managers in their planning,
decision making controlling, decision-making, and
performance evaluations
2) Allows managers to trace costs
associated with specific current jobs to
better estimate costs of future jobs
3) Provides a means by which managers
can better control the costs associated
with their operations
14. Method of Normal continuous losses in process
neglect costing are excluded from EUP
calculation which increases cost per
equivalent unit
15. mix possible combination of materials or
labor
16. process costing Ex. Gasoline, grain, agriculture, paper

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