A number of terms are listed below:
Source document
Actual
Cost tracing
Cost allocation rate
Proration
Opportunity cost
Cost pool
REQUIRED
Select the terms from the above list to complete the following sentences.
1. __________ spreads under-allocated overhead or over-allocated overhead among ending work-in-process inventory, finished goods inventory, and cost of goods sold.
2. The benefits of using a(n) __________ cost system is that your costing information is very accurate.
3. The __________ is the result of dividing the indirect cost pool by the cost allocation base.
4. A __________ is an original record that supports journal entries in an accounting system.
5. A(n) __________ is the contribution to income lost or forgone by not using a limited resource in its next-best alternative use.
6. _________ is the assigning of direct costs to the chosen cost object.
7. A _________ is a grouping of individual cost items.