Match the appropriate letter for the key term or concept to each definition provided (items 1-14). Note that not all key terms and concepts will be used.
|
a.
|
Cost accounting
|
l.
|
Production standards
|
|
b.
|
Cost management
|
m.
|
Raw material
|
|
c.
|
Value chain
|
n.
|
Direct labor
|
|
d.
|
Cost object
|
o.
|
Overhead
|
|
e.
|
Cost pool
|
p.
|
Overhead application rate
|
|
f.
|
Cost assignment
|
q.
|
Job order costing system
|
|
g.
|
Direct cost
|
r.
|
Process costing system
|
|
h.
|
Indirect cost
|
s.
|
Absorption costing
|
|
i.
|
Product costs
|
t.
|
Direct (or variable) costing
|
|
j.
|
Period costs
|
u.
|
Activity-based costing
|
|
k.
|
Statement of cost of goods manufactured
|
|
|
1. A product costing method by which only variable manufacturing costs are included in product cost.
2. Any reference point for which management wants to measure cost.
3. A supplementary financial statement that supports the cost of goods sold figure on the income statement by summarizing raw materials, direct labor, and manufacturing overhead costs incurred during the period.
4. Noninventoriable costs, including selling, general, and administrative expenses, that relate to an accounting period.
5. The process of allocating an amount of cost to a cost object.
6. The rate used to allocate overhead to specific production runs.
7. A cost incurred because of the product or activity under consideration; the cost would not be incurred if the product or activity were discontinued.
8. A product costing method by which both variable and fixed manufacturing costs are included in product cost.
9. A product costing system used when discrete products, such as sailboats tailored to the buyer's specifications, are manufactured.
10. Effort provided by workers who are directly involved in the manufacture of a product.
11. The sequence of functions (R&D, design, production, marketing, distribution, and customer service) and related activities that, over the life of a product or service, adds value for the customer.
12. Inventoriable costs including raw materials, direct labor, and manufacturing overhead.
13. A cost related to the product or activity under consideration but not incurred solely because of the product or activity; the cost would continue to be incurred if the product or activity were discontinued.
14. Expected or allotted times and costs to make a product or perform an activity.