Accounting Chapter 16
This is the accounting vocaublary for chapter 16.
Terms
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- materials inventory
- raw materials for use in manufacturing
- total quality management (TQM)
- a philosophy of delighting customers by providing them with superior products and services. requires inproving quality and eliminating defects and waste throughout the value chain
- merchandising company
- a comapany that resells products previously bought from suppliers
- enterprise resource planning (ERP)
- software systems that can integrate all of a company's worldwide functions, departments, and data into a single system
- cost of goods manufactured
- the manufacturing of plant-related costs of the goods that finished the production process this period
- period costs
- operating costs that are expensed in the period in which they are incurred
- management accountability
- the managers fiduciary responsibility to manage the resources of an organization
- direct cost
- a cost that can be traced to a cost object
- controlling
- implementing plans and evaluating the results of business operations by comparing the actual results to the budget
- factory overhead
- all manufacturing costs other than direct materials and direct labor. also called MANUFACTURING OVERHEAD or INDIRECT MANUFACTURING COSTS
- planning
- choosing goals and deciding how to acheive them
- indirect materials
- materials whose costs cannot conveniently be directly traced to particular finised products
- finished goods inventory
- completed goods that have not yet been sold
- indirect manufacturing cost
- all manufacturing costs other than direct materials and direct labor. also called FACTORY OVERHEAD or MANUFACTURING OVERHEAD
- cost/benefit analysis
- weighing costs against benefits to help make decisions
- indirect labor
- labor costs that are difficult to trace to specific products
- cost object
- anything for which managers want a separate measurement of cost
- inventoriable product costs
- all costs of a product that GAAP requires companies to treat as an asset for external financial reporting. these costs re not expensed until the product is sold
- total manufacturing costs
- costs that include direct materials, direct labor, manufacturing overhead
- indirect cost
- a cost that cannot be traced to a cost object
- manufacturing overhead
- all manufacturing costs other than direct materials and direct labor. also called FACTORY OVERHEAD or INDIRECT MANUFACTURING COSTS
- service company
- a company that sells intangible services, rather than tangible products
- direct labor
- the compensation of employees who physically convert materials into finished products
- manufacturing company
- a comapny that uses labor, plant, and equipment to convert raw materials into new finished products
- management accounting
- the branch of accounting that focuses on information for internal decision makers of a business
- direct materials
- materials that become a physical part of a finished product and whose costs are traceable to the finished product
- Just - In - Time (JIT)
- a system in which a company produces just in time to satisfy needs. suppliers deliver materials just in time to begin production and finished units are completed just in time for delivery to the customer
- work in process inventory
- goods that are partway through the manufacturing procces but not yet complete