Accounting Terminology
Listed Below Are Nine Technical Accounting Terms Introduced

question 29

Essay

Accounting terminology
Listed below are nine technical accounting terms introduced or emphasized in this chapter:
$$\begin{array} { | l | l | l | } \hline \text { Finished Goods Inventory } & \text { Overapplied overhead } & \text { Activity-based cost system } \\\hline \text { Work-in-Process Inventory } & \text { Underapplied overhead } & \text { Job order cost system } \\\hline \text { Job cost sheet } & \text { Materials Inventory } & \text { Process cost system } \\\hline\end{array}$$
Each of the following statements may (or may not) describe one of these technical terms. In the space provided below each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.
_______ (a) The balance remaining in the Manufacturing Overhead account when the overhead application rate used during the period is too low.
_______ (b) The account credited as component parts are transferred into production. _______ (c) A schedule used to accumulate manufacturing costs and to determine the unit costs associated with a specific customer's order.
_______ (d) The inventory account credited when the cost of goods sold is recorded.
_______ (e) The type of cost accounting system most likely used by an oil refinery engaged in the continuous production of petroleum products.
_______ (f) The inventory account debited when manufacturing cost accounts (such as Direct Labor or Materials Inventory) are credited.
_______ (g) The type of cost accounting system likely to be used by a machine shop that manufactures items to the specifications provided by its customers.

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Definitions:

Legal Term

A phrase or word used within the law, having specific, detailed meanings relevant to legal outcomes and interpretations.

Holographic Wills

Wills entirely handwritten, signed, and dated by the testator, without the need for witnessed formalities, recognized in some jurisdictions.

Codicils

Amendments or additions made to an existing will, allowing for adjustments without needing to draft a new document entirely.

Trusts

Legal arrangements where one party holds property for the benefit of another, also used in monopolistic business contexts to refer to large corporations that exert significant control over a market.