Terms to Learn

This chapter and the Glossary at the end of the text contain definitions of the following important terms:

1. actual costing
2. actual indirect-cost rate
3. adjusted allocation-rate approach
4. budgeted indirect-cost rate
5. cost-allocation base
6. cost pool
7. job
8. job-cost record
9. job-cost sheet
10. job-costing system
11. labor-time sheet
12. manufacturing overhead allocated
13. manufacturing overhead applied
14. materials-requisition record
15. normal costing
16. overabsorbed indirect costs
17. overallocated indirect costs
18. overapplied indirect costs
19. process-costing system
20. proration
21. source document
22. underabsorbed indirect costs
23. underallocated indirect costs
24. underapplied indirect costs