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Acct 2 - Chpt 1 & 2
Terms in this set (17)
In order to be useful to managers, management accounting reports
should possess what characteristics
provide objective measures of past operations and subjective estimates about future decisions, be provided at any time management needs information, be prepared to report information for any unit of the business to support decision making
The basic phases of the management process
planning, directing, controlling, improving, & decision making
the concept and purpose of direct materials cost and be able to
identify an example
are identified with and can be traced to a cost object. Wood used to make guitars is a direct cost.
the concept and purpose of direct labor cost and be able to identify
The cost of employee wages that is an integral part of the finished product
what are goods that are partially completed by a manufacturer
referred to as
Work in process inventory
the concept and purpose of period cost and be able to identify an
consist of selling and admin expenses. Advertising, Sales salaries, commissions, office sals, office supplies, depreciation.
are incurred in marketing the product and delivering the product to customers.
are incurred in managing the company and are not directly related to the manufacturing or selling functions.
what cost are included in product cost
Direct materials, direct labor, and factory overhead
what cost are included in period cost
Selling expenses and admin expenses.
what type of systems are job order costing and process costing
Cost Accounting Systems
what costs are included in finished goods inventory
Includes the cost of completed (or finished) products that have not
been sold. The product costs assigned to completed guitars that have
not yet been sold.
a separate account for each material is found in what document
the purpose of the materials requisitioned
A document that specifies the type and quantity of materials to be drawn from the storeroom and identifies the job will be charged for the cost of the materials
the amount of time spent by each employee and the labor cost
incurred for each individual job or for factory overhead are recorded on what document
In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:
be prepared in accordance with generally accepted accounting principles
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