COMMERCE 2AB3 Chapter Notes - Chapter 3: Income Statement, Accounts Receivable, Root Mean Square
15 Mar 2017
School
Department
Course
Professor
Document Summary
Activity base: a predetermined overhead rate that is based on the relationship between the estimated annual overhead costs and the expected annual operating activity. It is expressed in terms of direct labour costs, direct labour hours, machine hours, or any other measure that will provide a fair basis for applying overhead costs to jobs. Actual costing system: a cost accounting system in which costs are assigned to a cost object by using data on actual costs incurred during the accounting period. Cost accounting: an area of accounting that involves measuring, recording, and reporting product costs. Cost accounting system: manufacturing cost accounts that are fully integrated into the general ledger of a company. Job cost sheet: a form used to record the costs that are chargeable to a job and to determine the total and unit costs of the completed job. Job order cost system: a cost accounting system in which costs are assigned to each job or batch.
