Term
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Definition
| cost incurred (a historical or past cost), as distinguished from a budgeted or forecasted cost |
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Term
| Actual indirect-cost rate (110) |
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Definition
| actual total indirect costs in a cost pool divided by the actual total quantity of the cost allocation base for that cost pool |
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Term
| Adjusted allocation-rate approach (118) |
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Definition
| restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates |
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Term
| Budgeted indirect-cost rate (104) |
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Definition
| budgeted annual indirect costs in a cost pool divided by the budgeted annual quantity of the cost allocation base |
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Term
| Cost-allocation base (100) |
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Definition
| a factor that links in a systematic way an indirect cost or group of indirect costs to a cost object |
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Term
| Cost-application base (100) |
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Definition
| cost-allocation base when the cost object is a job, product or customer |
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Term
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Definition
| a grouping of individual cost items |
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Term
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Definition
| a unit or multiple units of a distinct product or service |
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Term
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Definition
| source document that records and accumulates all the costs assigned to a specific job, starting when work begins, Also called job-cost sheet |
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Term
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Definition
| also called job-cost record |
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Term
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Definition
| costing system in which the cost object is a unit or multiple units of a distinct product or service called a job |
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Term
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Definition
| source document that contains information about the amount of labor time used for a specific job in a specific department |
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Term
| Manufacturing overhead allocated (113) |
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Definition
| amount of manufacturing overhead costs allocated to individual jobs, products or services based on the budgeted rate multiplied by the actual quantity used of the cost-allocation base. Also called manufacturing overhead applied |
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Term
| Manufacturing overhead applied (113) |
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Definition
| also called manufacturing overhead allocated |
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Term
| Materials-requisition record (105) |
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Definition
| source document that contains information about the cost of direct materials used on a specific job and in a specific department |
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Term
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Definition
| a costing system that traces direct costs to a cost object by using the actual direct-cost rates times the actual quantities of the direct-cost inputs and that allocates indirect costs based on the budgeted indirect-cost rates times the actual quantities of the cost-allocation bases |
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Term
| Overabsorbed indirect costs (118) |
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Definition
| also called overallocated indirect costs |
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Term
| Overallocated indirect costs (118) |
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Definition
| allocated amount of indirect costs in an accounting period is greater that the actual (incurred) amount in that period. Also called overapplied indirect costs and overabsorbed indirect costs |
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Term
| Overapplied indirect costs (118) |
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Definition
| also called overallocated indirect costs |
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Term
| Process-costing system (101) |
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Definition
| costing system in which the cost object is masses of identical or similar units of a product or service |
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Term
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Definition
| the spreading of underallocated manufacturing overhead or overallocated manufacturing overhead among ending work in process, finished goods and cost of goods sold |
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Term
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Definition
| an original record that supports journal entries in an accounting system |
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Term
| Underabsorbed indirect costs (118) |
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Definition
| also called underallocated indirect costs |
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Term
| Underallocated indirect costs (118) |
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Definition
| allocated amount of indirect costs in an accounting period in less than the actual (incurred) amount in that period. Also called underapplied indirect costs or underabsorbed indirect costs |
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Term
| Underapplied indirect costs (118) |
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Definition
| also called underallocated indirect costs |
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