Horizontal analysis is also known as trend analysis. linear analysis. common size analysis. vertical analysis. Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time to determine the amount and/or percentage increase or decrease that has taken place. that has been arranged from the lowest number to the highest number. to determine which items are in error. that has been arranged from the highest number to the lowest number. Vertical analysis is a technique that expresses each item in a financial statement in dollars and cents. as a percent of the item in the previous year. as a percent of a base amount. starting with the highest value down to the lowest value. Process costing is used when the production process is continuous. production is aimed at filling a specific customer order. dissimilar products are involved. costs are to be assigned to specific jobs. An important feature of a job order cost system is that each job
has its own distinguishing characteristics. must be similar to previous jobs completed. must be completed before a new job is accepted. consists of one unit of output. In a process cost system, product costs are summarized: on production cost reports. when the products are sold. after each unit is produced. on job cost sheets. An activity that has a direct cause-effect relationship with the resources consumed is a(n) cost driver. overhead rate. product activity. cost pool. Activity-based costing accumulates overhead in one cost pool, then assigns the overhead to products and services by means of a cost driver. assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools. allocates overhead to multiple activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers.
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- Accounting, ACC_561_Final_Exam_Fall 2015, Net Income, Total fixed costs