Final answer:
The correct match are:
- A. Job Cost Sheet: A detailed record of costs incurred to complete a specific job.
- B. Labor Time Ticket: A source document that shows how a worker spent time each week.
- C. Process Costing: An accounting system used by companies to make standardized or homogeneous products or services.
- D. Job Order Costing: An accounting system used by companies that offer customized or unique products or services.
- E. Direct Costs: Major inputs that can be directly and easily traced to a product, job, or service.
- F. Direct Labor: Hands-on work that goes into producing a product, job, or service.
- G. Indirect Costs: Costs not easily traceable to producing a product, job, or service.
- H. Overapplied Overhead: The amount of actual overhead is greater than the applied overhead.
- I. Materials Requisition Form: A form that lists the quantity of direct materials to be used in a job.
- J. Indirect Costs: Indirect costs that are allocated to each job.
- K. Predetermined Overhead Rate: Estimated manufacturing overhead divided by estimated cost driver.
- L. Cost Driver: A measure that causes or influences the incurrence of a cost.
- M. Unit Cost: Total cost divided by units produced.
- N. Underapplied Overhead: The amount of actual overhead is less than the applied overhead.
- O. Total Manufacturing Cost: Actual direct materials plus actual direct labor plus applied manufacturing overhead.
Step-by-step explanation:
This matching process is necessary to understand and apply the principles and methods of job order and process costing in accounting accurately. Each term corresponds to a specific concept or document used in these costing systems, clarifying their roles in cost allocation, tracking, and determining overall expenses related to production or service delivery.
Complete question:
Match each term on the left with the best definition on the right. Note: Not all definitions will be used. What terms and definitions are being matched, and why is this matching process necessary?
A. A detailed record of costs incurred to complete a specific job.
B. A source document that shows how a worker spent time each week.
C. An accounting system used by companies to make standardized or homogeneous products or services.
D. An accounting system used by companies that offer customized or unique products or services.
E. Major inputs that can be directly and easily traced to a product, job, or service.
F. Hands-on work that goes into producing a product, job, or service.
G. Costs not easily traceable to producing a product, job, or service.
H. The amount of actual overhead is greater than the applied overhead.
I. A form that lists the quantity of direct materials to be used in a job.
J. Indirect costs that are allocated to each job.
K. Estimated manufacturing overhead divided by estimated cost driver.
L. A measure that causes or influences the incurrence of a cost.
M. Total cost divided by units produced.
N. The amount of actual overhead is less than the applied overhead.
O. Actual direct materials plus actual direct labor plus applied manufacturing overhead.
1. Allocation Base
2. Labor Time Ticket
3. Indirect Costs
4. Job Cost Sheet
5. Job Order Costing
6. Materials Requisition Form
7. Overapplied Overhead
8. Underapplied Overhead
9. Predetermined Overhead Rate
10. Process Costing