Chapter 3, Problem 3.16SE

Understanding key terms (Learning Objectives 1, 2, 3, & 4)

Listed next are several terms. Complete the following statements with one of these terms. You may use a term more than once, and some terms may not be used at all.

1. a. _____ is used by companies that produce unique services and products.
2. b. Raw materials are stored in a storeroom until a _____ is received requesting the transfer of materials to the production area.
3. c. _____ is the assignment of direct costs to specific jobs.
4. d. Indirect costs cannot be traced to specific products, so they are divided up using a process called _____.
5. e. A custom-home builder would use a _____ system to determine product cost.
6. f. A _____ is any activity that causes a cost to be incurred.
7. g. _____ is used by companies that produce large numbers of identical units through a series of uniform production steps or processes.
8. h. The _____ is used to track and accumulate all of the costs for an individual job.
9. i. PepsiCo produces Ruffles potato chips; it would use a _____ system to determine product cost.