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Select the Term from the List Provided That Best Matches

Question 48

Matching

Select the term from the list provided that best matches each of the following descriptions.

Premises:

Responses:

The process of dividing a cost into parts and apportioning among cost objects

Allocation

Items for which managers need to know the cost. Examples include products and departments

Allocation base

Factor determined by taking the total cost to be allocated and dividing by the appropriate cost driver

Allocation rate

The stage in the production process where joint products become separate and identifiable

Overhead costs

Costs that cannot be easily traced to a cost object

Cost

Adding together many costs to determine the cost of a cost object

Cost accumulation

Two or more products that emerge from a common process

Cost driver

Another term used for a cost driver

Cost objects

A factor such as a measure of activity that causes costs to increase or decrease

Cost pool

Common costs that are incurred in the process of making two or more products

Direct costs

Costs that are easily traced to a cost object

Indirect costs

The amount of resources that must be sacrificed to obtain some benefit

Joint costs

A collection of individual costs that are added together and then allocated to cost objects

Joint product

Indirect costs of doing business that cannot be traced directly to a product, department, or process. Example: Depreciation

Split-off point

Joint products

Premises:

The process of dividing a cost into parts and apportioning among cost objects

Items for which managers need to know the cost. Examples include products and departments

Factor determined by taking the total cost to be allocated and dividing by the appropriate cost driver

The stage in the production process where joint products become separate and identifiable

Costs that cannot be easily traced to a cost object

Adding together many costs to determine the cost of a cost object

Two or more products that emerge from a common process

Another term used for a cost driver

A factor such as a measure of activity that causes costs to increase or decrease

Common costs that are incurred in the process of making two or more products

Costs that are easily traced to a cost object

The amount of resources that must be sacrificed to obtain some benefit

A collection of individual costs that are added together and then allocated to cost objects

Indirect costs of doing business that cannot be traced directly to a product, department, or process. Example: Depreciation

Responses:

Allocation

Allocation base

Allocation rate

Overhead costs

Cost

Cost accumulation

Cost driver

Cost objects

Cost pool

Direct costs

Indirect costs

Joint costs

Joint product

Split-off point

Joint products

Correct Answer:

Premises:

Responses:

Allocation

Allocation base

Allocation rate

Overhead costs

Cost

Cost accumulation

Cost driver

Cost objects

Cost pool

Direct costs

Indirect costs

Joint costs

Joint product

Split-off point

Joint products