The Following Are Key Terms in Chapter 12 That Relate

question 19

Short Answer

The following are key terms in Chapter 12 that relate to costing of government services:
A.Allowable costs
B.Job order costing
C.Cost principle
D.Cost objective
E.Indirect costs
F.Direct costs
G.Process costing
H.Activity-based costing
For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition
_____ 1. A system that identifies specific costs that drive the cost of service or production activities
_____ 2. Costs incurred that cannot be identified specifically with a cost objective
_____ 3. Costs that meet specific criteria determined by the resource provider
_____ 4. A program,function,activity,award,organizational subdivision,contract,or work unit established for the accumulation of costs
_____ 5. System appropriate for recording costs of continuous activities or processes

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Definitions:

Dividends

Funds distributed by a company to its stockholders, typically from earnings.

Retained Earnings

The portion of net income not distributed to shareholders but retained by the company to reinvest in its core business or to pay off debt.

Stock Dividend

A payment made to shareholders in the form of additional shares rather than cash, often based on a predetermined ratio to existing ownership.

Balance Sheet

A summary document that outlines a firm's liabilities, assets, and equity held by shareholders at a particular moment.