Upgrade to remove ads
Acctg 404 lesson 1
Terms in this set (47)
A type of accounting typically only seen and used by those who work within a company.
3 Reasons employees use managerial accounting
Planning, controlling, decision making
Planning aspect of managerial accounting
The process of setting objectives or desired outcomes for a particular period
Examples of planning
Setting sales goals
Identifying potential cost saving techniques to be implemented
Anything that helps a company maximize profit
Controlling aspect of managerial accounting
The process of ensuring that the ideas produced in the planning stage have been or are being implemented and that they are effective
T/F controlling can be both financial and non-financial
Ensuring sales are rising or costs are being reduced
Non financial controlling objectives
Lack of machine or employee down time
Increases in company morale
Decision making aspect of managerial accounting
Process of choosing between two or more alternatives
Can decision making me completed without planning or controlling?
No they go hand in hand and rely on the other steps in order to be useful
What is financial accounting governed by?
Generally Accepted Accounting Principles (GAAP)
Who uses the information from financial accounting?
business stakeholders, investors, debtors, government agencies, suppliers and many more
T/F Managerial accounting is governed by GAAP
Is Managerial accounting governed by any other specific governing rules?
Why isn't managerial accounting governed?
the information within managerial accounting does not need to be public and it can be organized and presented in what ever way best suits that specific company.
nothing specific is required in managerial accounting, but most companies produce similar information that is known as
best practices of managerial accounting
Does financial accounting have external or internal users?
Does financial accounting report historical or forward looking information?
is financial accounting information estimated?
No, only when necessary
does managerial accounting have external or internal users?
does managerial accounting report historical or forward looking information?
Does managerial accounting rely on estimates?
includes tangible costs as well as time spent on as well as utilities used in production of a product
Cost of goods sold in managerial accounting
those costs required to be incurred in order to produce a product to be sold
categories that product costs can fit under
two categories of costs at a manufacturing company
product and period costs
materials that can be traced to an individual product
the time spent that can be directly traced to an individual product calculated against the amount that the laborer earns
the cost needed to produce a product but that cannot be directly traced to an individual product
examples of factory overhead
depreciation on the factory
indirect materials and labor
property taxes on the factory
has nothing to do with the manufacturing of a product. These costs are needed for a company to become profitable, but they are not needed to actually produce the product
examples of period costs
utilities of an office building
what are period costs classified as?
they are expensed as incurred
are period costs are included in costs of goods sold?
COGS in a merchandising company
what the company pays its suppliers for the merchandise
COGS in a manufacturing company
compare beginning and ending direct materials (determine the amount of purchased DMs), work in progress, and finished goods inventories include direct labor and factory overhead
step 1 of determining COGS in a manufacturing company
establish the cost of materials placed into production
what is the cost of materials places into production?
the amount of materials that the company takes from materials inventory and puts into production
formula to find the cost of materials placed into production
beginning materials inventory + purchases - ending materials inventory
step 2 of determining COGS in a manufacturing company
determining the cost of goods manufactured (COGM)
WIP (work in progress) inventory
the amount of product that has been started but not yet completed
formula to find the cost of goods manufactured
beginning WIP inventory + materials placed into production + direct labor + factory overhead - ending WIP inventory
step 3 of determining COGS in a manufacturing company
determine the cost of goods sold
what does the final COGS include?
finished goods inventory
finished goods inventory
the inventory for goods that have been manufactured but not yet sold
formula for the costs of goods sold in a manufacturing company
beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory
YOU MIGHT ALSO LIKE...
Ch. 19 Managerial Accounting // Outline // Account…
ACCT 2000- Ch. 14
Chap. 14 Accounting for Jaunty30
OTHER SETS BY THIS CREATOR
Exam 1 FIN 407
FIN 407 Week 3
Fin 461 Chapter 1
OTHER QUIZLET SETS
Abeka 7th grade Science (2018) quiz 38
Microbiology Exam 1: Characteristics of Microbes
Exam 2 Jeopardy (American Politics)