Chapter 4 Cost Accounting

Name the 3 main characteristics of a costing method.

Name the 2 types of cost accumulation methods.

Name the 3 types of cost measurement methods.

Name the 2 types of overhead application methods.

Manufacturing operations whose conversion activities are very similar across several product lines, but whose direct materials used in the various products differ significantly, use _____ costing, a hybrid costing system.

Name the 2 types of spoilage.

Name the 2 types of normal spoilage.

Normal spoilage which is particular to a given job and is not due to factors related to other jobs.

Normal spoilage which is due to factors that affect two or more jobs.

Name the cost accumulation, cost measurement, and overhead application methods most likely to be used by a cost leadership firm.

A ____ costing system is appropriate when most costs incurred for the job can be readily identified with a specific product, batch of products, customer order, contract, or project.

A ____ costing system is likely to be found in a firm that primarily produces a limited variety of homogeneous products or services.

A(n) ____ costing system uses actual costs for DM, DL, and FOH.

A(n) ____ costing system uses actual costs for DM and DL and estimated costs for FOH.

A(n) ____ costing system uses standard costs for DM, DL, and FOH.

Name the 3 types of errors in overhead application.