Definitions for Accounting

1. An accounting method used by a company when production is characterized by continuous mass production.The type of method most likely used by an oil refinery engaged in the continuous production of petroleum products.
2. The balance remaining in the Manufacturing Overhead account when the overhead application rate used during the period is too low.
3. The balance remaining in the Manufacturing Overhead account when the overhead application rate used during the period is too high.
4. Materials used in the manufacturing process that cannot be traced conveniently to specific units of production, such as lubricating oil, and screws.
5. Overhead cost categories that represent the cumulative costs associated with a specific activity (such activity has been determined to consume overhead resources)
6. An accounting method used by a company when the focal point of accumulating the costs of production is based on a unique project or product.The type of cost accounting method likely to be used by a machine shop that manufactures items to the specifications provided by its customers
7. Goods at any stage of the manufacturing process - short of completion, that are included in an account which has a balance that is increased by manufacturing costs incurred during the period and decreased by the cost of finished goods manufactured.
8. Manufacturing costs, other than the costs of direct materials and direct labor, including such costs as the salaries of plant guards, supervisors, maintenance personnel as well as the cost of miscellaneous materials and supplies used in production.
9. A measure of the work done during an accounting period, including work done on beginning and ending inventories of work-in-process as well as those units completely processed during the period
10. A cost accounting system that tracks indirect costs more accurately by identifying and attributing those costs to the activities that consume resources
11. The category of inventory representing the cost of materials on hand and available for use in the manufacturing process that have not yet been moved to the manufacturing process
12. A schedule used to accumulate manufacturing costs (materials, labor and overhead) and to determine the unit costs associated with a specific customer's order.All such schedules serve as subsidiary ledgers supporting the balance of the Work in Process inventory account.