Cost Accounting Flashcards
6 cards from real Accounting Online Program practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Cost Accounting flashcards as text
A standard cost system differs from an actual cost system in that it:
Answer: Uses predetermined costs for materials, labor, and overhead
A standard cost system uses pre-established costs for materials, labor, and overhead, and then compares these standards to actual costs to identify and analyze variances.
Which variance measures the difference between the actual quantity of materials used and the standard quantity allowed, at standard price?
Answer: Material quantity (usage) variance
The material quantity variance isolates the efficiency of material usage by comparing actual quantity used vs. standard quantity allowed for actual output, both at standard price.
What does the term 'cost of goods manufactured' represent?
Answer: Total manufacturing costs for goods completed and transferred to finished goods during the period
Cost of goods manufactured is the total production cost of all units completed during the period and transferred from work-in-process to finished goods inventory.
Throughput costing (super-variable costing) treats which costs as product costs?
Answer: Only direct materials
Throughput costing, associated with the theory of constraints, treats only direct materials as product (inventory) costs, expensing all other costs (including direct labor and overhead) immediately.
Joint costs in cost accounting refer to:
Answer: Manufacturing costs incurred up to the split-off point that produce two or more products simultaneously
Joint costs are incurred before the split-off point in a joint production process and result in two or more products (joint products or by-products) that cannot be separated until that point.
The net realizable value (NRV) method for allocating joint costs uses:
Answer: The final selling price minus additional processing costs after split-off
The NRV method allocates joint costs based on each product's estimated NRV (final sales value minus further processing costs), reflecting economic value at the split-off point.