What are the two general approaches for valuing inventory and cost of goods sold? Standard costing and actual costing FIFO and LIFO Job order costing and process costing Absorption costing and variable costing

Absorption costing and variable costing

In absorption costing, which costs are considered product costs? Direct Materials, Variable Manufacturing Overhead, Fixed Selling Expenses Direct Materials, Direct Labor, Variable Selling Expenses, Fixed Selling Expenses Direct Materials, Direct Labor, Variable Manufacturing Overhead, Fixed Manufacturing Overhead Direct Labor, Variable Selling Expenses, Fixed Manufacturing Overhead

Direct Materials, Direct Labor, Variable Manufacturing Overhead, Fixed Manufacturing Overhead

In variable costing, which costs are considered product costs? Direct Labor, Variable Selling Expenses, Fixed Selling Expenses Direct Materials, Direct Labor, Fixed Manufacturing Overhead Direct Materials, Direct Labor, Variable Manufacturing Overhead Direct Materials, Variable Selling Expenses, Fixed Manufacturing Overhead

Direct Materials, Direct Labor, Variable Manufacturing Overhead

Cost Accounting Methods: Absorption vs. Variable Costing & Inventory Valuation Approaches

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Finance - Personal Finance

andrsonztdc Created by 10 mon ago

Cards in this deck(83)

What are the two general approaches for valuing inventory and cost of goods sold?

In absorption costing, which costs are considered product costs?

In variable costing, which costs are considered product costs?

Under absorption costing, which cost is classified as a product cost?

Under variable costing, which cost is classified as a period cost?

Which costing method is required by GAAP for external financial reporting and must be used when filing income tax returns?

Which costing method is preferred by managers for decision making and is consistent with cost-volume-profit analysis?

Which costing method will produce the highest values for work in process and finished goods?

Which inventory method assigns the newest inventory costs to cost of goods sold and the oldest costs to ending inventory?

Which inventory method assigns the oldest inventory costs to cost of goods sold and the newest costs to ending inventory?

What are benchmarks or 'norms' for measuring performance in a business context?

What specifies how much should be paid for each unit of input in a production process?

What specifies how much of an input should be used to make a product or service?

What is a detailed list of standards that should go into making a unit of product called?

Which costs are considered variable manufacturing costs?

In performance evaluation, the difference between actual results and standards is referred to as a _____?

What is the difference between actual price and standard price called?

What is the difference between actual quantity and standard quantity called?

Why are price and quantity variances determined separately in cost analysis?

What are the two direct material variances?

What does a positive variance indicate in cost analysis?

What does a negative variance indicate in cost analysis?

In the DM Price Variance Formula (AQ x AP) - (AQ x SP), what does AQ represent?

In the DM Quantity Variance Formula (AQ x SP) - (SQ x SP), what does AQ represent?

What does the DM Price Variance measure?

What does the DM Quantity Variance measure?

In the DL Rate Variance Formula (AH x AR) - (AH x SR), what does (AH x AR) represent?

In the DL Efficiency Variance Formula (AH x SR) - (SH x SR), how is the standard hours (SH) calculated?

What does the DL Rate Variance measure?

What does the DL Efficiency Variance measure?

What is the formula for the VOVH Spending Variance?

In the VOVH Efficiency Variance Formula (AH x SR) - (SH x SR), how is the standard hours (SH) calculated?

What does the VOVH Spending Variance measure?

What does the VOVH Efficiency Variance measure?

What is a comprehensive financial plan for achieving the financial and operational goals of an organization called?

What involves developing objectives for the acquisition and use of resources?

What are the steps taken by management to ensure that objectives are attained?

What is a detailed schedule that shows the expected sales for the budget period, typically expressed in both sales dollars and sales in units?

Does budgeting sales of $1 million for August mean that the company will collect $1 million cash in August?

What shows the cash expected to be collected each budget period?

What calculates the number of units that must be produced each budget period to meet expected sales and maintain desired levels of ending inventory?

What is the formula for calculating the units to be produced in a production budget?

What tells the amount of direct materials that must be purchased to meet budgeted production and maintain desired levels of ending inventory?

What is the formula for calculating the direct materials to be purchased?

What calculates the budgeted cost of direct labor for each budget period?

What is the formula for calculating the budgeted direct labor cost?

What are mixed costs that have both fixed and variable elements, and how are they shown in expense budgets?

What is the formula for calculating the total manufacturing overhead cost in the overhead expense budget?

What is the formula for calculating the total S&A expense in the S&A expense budget?

What details the expected inflows and outflows of cash for each budget period?

Which expense should never appear on the cash budget?

What is the formula for calculating the ending cash balance in a cash budget?

What is the process of planning and evaluating investments in plant assets called?

What are typical capital budgeting decisions?

What are the four capital budgeting techniques?

How is Net Present Value (NPV) calculated?

What does a positive NPV indicate about a project?

What does a zero NPV indicate about a project?

What does a negative NPV indicate about a project?

What represents the smallest rate of return the company is willing to accept on its own investment projects?

What are examples of cash inflows in capital budgeting?

What are examples of cash outflows in capital budgeting?

How is working capital treated in capital budgeting?

Why is depreciation not included in calculating the net present value of a project?

What represents the actual or real rate of return generated by an investment project?

When is a project considered acceptable based on the internal rate of return?

When is a project rejected based on the internal rate of return?

How do you calculate the internal rate of return (IRR) for a project?

What is the payback period and why is a shorter period preferred?

How do you calculate the payback period for a project?

What are the advantages of the payback method?

What are the disadvantages of the payback method?

What is the accounting rate of return and why should it not be the sole basis for decision making?

How do you calculate the accounting rate of return (ARR)?

What is a cash flow net of its income tax effect known as?

How do you calculate the after-tax cash flow?

What are examples of cash outflows after tax?

Why is there no tax effect on the initial investment?

What are examples of cash inflows after tax?

How do you calculate tax savings from depreciation?

How is income tax depreciation calculated?

When calculating for depreciation for the NPV, what is not subtracted?

When calculating depreciation for the accounting rate of return, what is subtracted?

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