Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 66

Following are a number of key terms and concepts introduced in the chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–14). Note that not all key terms and concepts will be used.

a. Cost accounting	l. Production standards
b. Cost management	m. Raw material
c. Value chain	n. Direct labor
d. Cost object	o. Overhead
e. Cost pool	p. Overhead application rate
f. Cost assignment	q. Job order costing system
g. Direct cost	r. Process costing system
h. Indirect cost	s. Absorption costing
i. Product costs	t. Direct (or variable) costing
j. Period costs	u. Activity-based costing
k. Statement of cost of goods manufactured

_________A product costing system used when discrete products, such as sailboats tailored to the buyer’s specifications, are manufactured.