Study sets matching "accounting managerial decision"

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Study sets matching "accounting managerial decision"

Managerial Accounting Decision Making
Working Capital
Current ratio
Quick ratio
Accounts receivable turn over
current assets - current liabilities
current assets/current liabilities
quick assets/quick liabilities (quick assets cash, marketable…
sales on account/average accounts receivable how quickly comp…
Working Capital
current assets - current liabilities
Current ratio
current assets/current liabilities
Managerial Accounting: Capital Budgeting Decisions
Capital Budgeting
Typical capital budgeting decisions
Screening decisions
Preference Decisions
How managers plan significant investments in projects that ha…
1. Cost reduction decisions. ... 2. Expansion decisions.... 3. Equi…
Decisions that relate to whether a proposed project is accept…
Decisions that relate to selecting from among several accepta…
Capital Budgeting
How managers plan significant investments in projects that ha…
Typical capital budgeting decisions
1. Cost reduction decisions. ... 2. Expansion decisions.... 3. Equi…
Managerial Accounting: Differential Analysis - The Key to Decision Making
Differential Cost
Differential Revenue
Avoidable Cost
Sunk Cost
A difference in cost between any two alternatives. Referred t…
A difference in revenue between any two alternatives. Referre…
Cost that can be eliminated by choosing one alternative over…
Cost that has already been incurred and cannot be avoided reg…
Differential Cost
A difference in cost between any two alternatives. Referred t…
Differential Revenue
A difference in revenue between any two alternatives. Referre…
13 terms
Managerial Accounting. Chapter 13: Capital Budgeting Decisions
Capital Budgeting
Cost of Capital
Internal Rate of Return
Net Present Value
The process of planning significant investments in projects t…
The average rate of return a company must pay to its long-ter…
The discount rate at which the net present value of an invest…
The difference between the present value of an investment pro…
Capital Budgeting
The process of planning significant investments in projects t…
Cost of Capital
The average rate of return a company must pay to its long-ter…
Managerial Accounting A Focus on Ethical Decision Making Ch 3
Manufacturing Companies
Merchandising Companies
Service Companies
Raw Materials
Companies that purchase raw materials from other companies an…
companies that sell products that someone else has maufactured
companies that do not sell a tangible product as their primar…
inventory of materials needed in the production process but n…
Manufacturing Companies
Companies that purchase raw materials from other companies an…
Merchandising Companies
companies that sell products that someone else has maufactured
Managerial Accounting - Chapter 14 - Decision Making: Relevant Costs and Benefits
Steps in the Decision Making Process
Qualitative Characteristics
Three Characteristics of Useful Inform…
Unique Decisions
1. Clarify the decision problem.... 2. Specify the criterion.... 3.…
Are the factors in a decision problem that cannot be expresse…
Relevance - Info is relevant if it is pertinent to a decision…
Arise infrequently or only once. ... Compiling data usually req…
Steps in the Decision Making Process
1. Clarify the decision problem.... 2. Specify the criterion.... 3.…
Qualitative Characteristics
Are the factors in a decision problem that cannot be expresse…
98 terms
Managerial Accounting
Marginal Cost
Unit Cost
Continuous Improvement
Kaizan
Extra cost of producing one additional unit of production.
The average production cost per unit
Ongoing small, incremental improvements in all parts of an or…
short term approach to enhancing efficiency that focuses on i…
Marginal Cost
Extra cost of producing one additional unit of production.
Unit Cost
The average production cost per unit
Managerial Accounting
Direct Materials
Direct Labor
Manufacturing Overhead
Non manufacturing Costs
Raw materials that become an integral part of the product and…
Those labor costs that can be easily traced to individual uni…
Manufacturing costs that cannot be easily traced directly to…
Selling Costs, administrative costs
Direct Materials
Raw materials that become an integral part of the product and…
Direct Labor
Those labor costs that can be easily traced to individual uni…
98 terms
Managerial Accounting
Marginal Cost
Unit Cost
Continuous Improvement
Kaizan
Extra cost of producing one additional unit of production.
The average production cost per unit
Ongoing small, incremental improvements in all parts of an or…
short term approach to enhancing efficiency that focuses on i…
Marginal Cost
Extra cost of producing one additional unit of production.
Unit Cost
The average production cost per unit
90 terms
Managerial Accounting
Budget
Business process
Controlling
Corporate social responsibility
A detailed plan for the future that is usually expressed in f…
A series of steps that are followed in order to carry out som…
The process of gathering feedback to ensure that a plan is be…
A concept whereby organizations consider the needs of all sta…
Budget
A detailed plan for the future that is usually expressed in f…
Business process
A series of steps that are followed in order to carry out som…
27 terms
Managerial Accounting Chapter 9: The Use of Budgets in Planning and Decision Making
Budgets
Planning
Operating
Control
Plans dealing with the acquisition and use of resources over…
The cornerstone of good management; involves developing objec…
Involves day to day decision making by managers, which is oft…
Involves ensuring that the objectives and goals developed by…
Budgets
Plans dealing with the acquisition and use of resources over…
Planning
The cornerstone of good management; involves developing objec…
Managerial Accounting
Cost
Expenses
Price
Accumulated cost
The amount of cash or cash equivalent sacrifice for goods and…
Expired cost. Expenses are deducted from revenues to determin…
The revenue per unit
The way that cost are measured and recorded
Cost
The amount of cash or cash equivalent sacrifice for goods and…
Expenses
Expired cost. Expenses are deducted from revenues to determin…
Managerial Accounting A focus on ethical decision making Ch 6 - Activity-Based Costing
changing cost environment
Changing Production Cost structure
Methods of Allocating Overhead costs
Plantwide Overhead Rate
fundamental shift from labor-intensive to automated assembly;…
many companies cost structures are moving to a lower proporti…
Plantwide overhead rate, departmental overhead rates, activit…
historically, companies tended to use direct labor as the ove…
changing cost environment
fundamental shift from labor-intensive to automated assembly;…
Changing Production Cost structure
many companies cost structures are moving to a lower proporti…
Managerial Accounting
Marginal Cost
Unit Cost
Continuous Improvement
Kaizan
Extra cost of producing one additional unit of production.
The average production cost per unit
Ongoing small, incremental improvements in all parts of an or…
short term approach to enhancing efficiency that focuses on i…
Marginal Cost
Extra cost of producing one additional unit of production.
Unit Cost
The average production cost per unit
98 terms
Managerial Accounting
Marginal Cost
Unit Cost
Continuous Improvement
Kaizan
Extra cost of producing one additional unit of production.
The average production cost per unit
Ongoing small, incremental improvements in all parts of an or…
short term approach to enhancing efficiency that focuses on i…
Marginal Cost
Extra cost of producing one additional unit of production.
Unit Cost
The average production cost per unit
15 terms
Managerial Accounting Chapter 8: Relevant Costs for Short-Term Decisions
Relevant Information
Sunk Costs
Target Costing
Cost-Plus Pricing
Expected future data that differs among alternatives.
A cost that has already been incurred.
An approach to pricing used by price-takers; target costing b…
A pricing approach in which the company adds a desired level…
Relevant Information
Expected future data that differs among alternatives.
Sunk Costs
A cost that has already been incurred.
12 terms
Managerial Accounting Chapter 8: Long-Term (Capital Investment) Decisions
Capital Investment Decisions
Time Value of Money
Net Present Value (NPV)
NPV (Equation)
Long-term decisions involving the purchase or lease of new ma…
The concept that a dollar received today is worth more than a…
A technique for considering the time value of money whereby t…
= (Present value of cash inflows ) ... - ... (present value of ca…
Capital Investment Decisions
Long-term decisions involving the purchase or lease of new ma…
Time Value of Money
The concept that a dollar received today is worth more than a…
40 terms
Managerial Accounting Chpt. 8 (Relevant Costs, Short term Decisions)
Relevant Information
Irrelevant Information
How managers make decisions:
Relevant Nonfinancial Information
-Expected future (cost and revenue) data.... -Differs among alte…
-Costs that do not differ between alternatives.... -Sunk costs:…
-Define business goals ... -Identify alternative courses of acti…
-Closing manufacturing plant ... -Laying off employees ... -Outsour…
Relevant Information
-Expected future (cost and revenue) data.... -Differs among alte…
Irrelevant Information
-Costs that do not differ between alternatives.... -Sunk costs:…
Managerial Accounting
3 components of product cost
period costs
indirect costs
manufacturing overhead
(1) materials, (2) labor, (3) and overhead
costs normally expensed in the period in which they are incur…
costs that cannot be traced to products and services in a cos…
the indirect costs incurred to make products; includes indire…
3 components of product cost
(1) materials, (2) labor, (3) and overhead
period costs
costs normally expensed in the period in which they are incur…
41 terms
Managerial Accounting
Total product cost =
Unit product cost =
Prime cost =
Conversion cost =
Direct materials + Direct labor + Manufacturing overhead
Total product cost / number of units
Direct materials + Direct labor
Direct labor + Manufacturing overhead
Total product cost =
Direct materials + Direct labor + Manufacturing overhead
Unit product cost =
Total product cost / number of units
7 terms
Managerial Accounting Chapter 7: Relevant Costs & Product-Planning Decisions
Special-Order Decisions
Make or Buy Decisions
Vertical Integration
Constraint
Short-run pricing decisions in which management must decide w…
short-term decisions to outsource labor or to purchase compon…
Accomplished when a company is involved in multiple steps of…
A restriction that occurs when the capacity to manufacture a…
Special-Order Decisions
Short-run pricing decisions in which management must decide w…
Make or Buy Decisions
short-term decisions to outsource labor or to purchase compon…
97 terms
Managerial Accounting
PCAOB
When did accounting industry become mo…
All accounting info should be
Product Cost
Public Company Accounting Oversight Board
After ENRON scandal
timely and relevant
All costs related to obtaining or manufacturing a product int…
PCAOB
Public Company Accounting Oversight Board
When did accounting industry become mo…
After ENRON scandal
12 terms
Quiz 1 Managerial Accounting
Gross Margin
Operating margin
Net Margin
Sequential Analaysis
Sales minus cost of goods sold (COGS or COS)
What is left after paying for COGS and operating expenses lik…
What is left at the bottom after subtracting all expenses fro…
Reviewing a firms financial statements from left to right to…
Gross Margin
Sales minus cost of goods sold (COGS or COS)
Operating margin
What is left after paying for COGS and operating expenses lik…
7 terms
Managerial Accounting FINAL Chapter 14 - Decision Making: Relevant Costs and Benefits
relevant information
irrelevent information
incremental revenue/cost
differential revenue/cost
occurs in the future and differs among the alternative course…
historical, or past, costs that are irrelevant to decision ma…
the additional revenue or cost incurred from an activity
the difference in total revenue or cost between two decision…
relevant information
occurs in the future and differs among the alternative course…
irrelevent information
historical, or past, costs that are irrelevant to decision ma…
40 terms
17th Financial and Managerial Accounting (The Basis for Business Decisions): Chapter 1
accounting system
American Accounting Association
American Institute of CPAs
audit
the personnel, procedures, devices, and records used by an or…
A professional accounting organization consisting primarily o…
A professional accounting organization of certfied public acc…
An investigation of financial statements designed to determin…
accounting system
the personnel, procedures, devices, and records used by an or…
American Accounting Association
A professional accounting organization consisting primarily o…
20 terms
Managerial Accounting
Which of the following is an example o…
The Zoe Corporation has the following…
The cost of a manufactured product gen…
Beginning work in process is equal to:…
c. Cost of interior upholstery
a. 125500... b. 127500
c. Direct labor cost, direct materials cost, and factory over…
b. Cost of goods manufactured plus ending work in process min…
Which of the following is an example o…
c. Cost of interior upholstery
The Zoe Corporation has the following…
a. 125500... b. 127500
Managerial Accounting
Direct Materials
Direct Labor
Manufacturing Overhead
Non manufacturing Costs
Raw materials that become an integral part of the product and…
Those labor costs that can be easily traced to individual uni…
Manufacturing costs that cannot be easily traced directly to…
Selling Costs, administrative costs
Direct Materials
Raw materials that become an integral part of the product and…
Direct Labor
Those labor costs that can be easily traced to individual uni…
98 terms
Managerial Accounting
Marginal Cost
Unit Cost
Continuous Improvement
Kaizan
Extra cost of producing one additional unit of production.
The average production cost per unit
Ongoing small, incremental improvements in all parts of an or…
short term approach to enhancing efficiency that focuses on i…
Marginal Cost
Extra cost of producing one additional unit of production.
Unit Cost
The average production cost per unit
98 terms
Managerial Accounting
Marginal Cost
Unit Cost
Continuous Improvement
Kaizan
Extra cost of producing one additional unit of production.
The average production cost per unit
Ongoing small, incremental improvements in all parts of an or…
short term approach to enhancing efficiency that focuses on i…
Marginal Cost
Extra cost of producing one additional unit of production.
Unit Cost
The average production cost per unit
43 terms
Managerial accounting Final
Managerial accounting
Authority to advise but not command is…
Management by exception means manageme…
A.... involves only the analysis of actual financial data from a…
staff authority.
significant deviations from expected results.
Managerial accounting
A.... involves only the analysis of actual financial data from a…
Authority to advise but not command is…
staff authority.
24 terms
Managerial Accounting Chapter 8: Relevant Cost for Short Term Decisions
How do Managers make Decisions?
Relevant Information
Relevant Financial Information
Sunk Costs
1. Define business goals... 2. Identify course of action ... 3. Gat…
is expected future data, and it differs among alternatives
1. Revenues and Costs... 2. Overall Profitability ... *DOES NOT inc…
costs that were incurred in the past, and cannot be changed r…
How do Managers make Decisions?
1. Define business goals... 2. Identify course of action ... 3. Gat…
Relevant Information
is expected future data, and it differs among alternatives
31 terms
17th Financial and Managerial Accounting (The Basis for Business Decisions): Chapter 2
assets
balance sheet
business entity
capital stock
economic resources owned by entity
the financial statement showing the financial position of an…
an economic unit that controls resources, incurs obligations,…
transferable units of ownership in a corporation
assets
economic resources owned by entity
balance sheet
the financial statement showing the financial position of an…
34 terms
17th Financial and Managerial Accounting (The Basis for Business Decisions): Chapter 2
Accounting Equation
Articulation
Assets
Balance Sheet ... AKA:The Statement of Fi…
Assets are equal to the sum of liabilities plus owners' equit…
The close relationship that exist among the financial stateme…
Economic resources owned by an entity
The financial statement showing the financial position of and…
Accounting Equation
Assets are equal to the sum of liabilities plus owners' equit…
Articulation
The close relationship that exist among the financial stateme…
26 terms
17th Financial and Managerial Accounting (The Basis for Business Decisions): Chapter 3
account
accountability
accounting cycle
accounting period
a record used to summarize all increase and decreases in a pa…
the condition of being held responsible for one's auctions by…
the sequence of accounting procedures used to record, classif…
the span of time covered by an income statement. one year is…
account
a record used to summarize all increase and decreases in a pa…
accountability
the condition of being held responsible for one's auctions by…
22 terms
Managerial Accounting Chapter 11
Asset Turnover
Cost-Based Transfer Prices
Decentralization
Decentralized Company
The ratio of sales divided by an investment base, which measu…
Prices that are based on production costs and used to... transfe…
The delegation of decision-making authority to lower manageri…
A company in which operating subunits are created with... defini…
Asset Turnover
The ratio of sales divided by an investment base, which measu…
Cost-Based Transfer Prices
Prices that are based on production costs and used to... transfe…
8 terms
managerial decisions
Principles for team leaders
Four thinking preferences
evaluating the arguments
organizational cultures as barriers to…
Critical thinking, Don't proselytize, Use the devil's advocat…
analytical, conceptual, structural, social
claim, grounds, warrant, qualifiers
cultural symbols, cultural values, shared assumptions, shared…
Principles for team leaders
Critical thinking, Don't proselytize, Use the devil's advocat…
Four thinking preferences
analytical, conceptual, structural, social
14 terms
Managerial Accounting Chapter 4
Cost of Production Report
Equivalent Units
First-In, First-Out (FIFO) Cost Method
Hybrid Cost System
A report which presents information about units, costs... charge…
The theoretical number of units that could have been produced…
A process costing method that presumes the beginning inventor…
One type of cost system is used for one phase of the producti…
Cost of Production Report
A report which presents information about units, costs... charge…
Equivalent Units
The theoretical number of units that could have been produced…
64 terms
Managerial Accounting
1. Which of the following is not a maj…
2. A major disadvantage of a corporati…
3. Which of the following statements i…
4. The ability of a corporation to obt…
c. Government regulations.
b. additional taxes.
c. Limited liability of stockholders
a. enhanced because of limited liability and ease of share tr…
1. Which of the following is not a maj…
c. Government regulations.
2. A major disadvantage of a corporati…
b. additional taxes.
15 terms
Managerial Accounting Chapter 12: Capital Investment Decisions and the Time Value of Money
Capital Budgeting
Capital Rationing
Post-audits
LEED Certification
The process of making capital investment decisions. Companies…
Choosing among alternative capital investments due to limited…
Comparing a capital investment's actual net cash inflows to i…
Leadership in Energy and Environmental Design. Certification…
Capital Budgeting
The process of making capital investment decisions. Companies…
Capital Rationing
Choosing among alternative capital investments due to limited…
51 terms
Managerial Accounting Chapter 1
Bill of Materials
Certified Management Accountant (CMA)
Committed Fixed Cost
Contribution Margin
A complete list of all materials used in a product.
A person who has passed a qualifying examination sponsored by…
A fixed cost over which a manager has no control and must... inc…
Sales revenue less variable costs.
Bill of Materials
A complete list of all materials used in a product.
Certified Management Accountant (CMA)
A person who has passed a qualifying examination sponsored by…
managerial accounting
segment
planning
controlling
budget
is a part or activity of an organization about which managers…
involves establishing goals specifying how to achieve them
the process of gathering feedback to ensure that a plan is be…
a detailed plan for the future that usually expressed in form…
segment
is a part or activity of an organization about which managers…
planning
involves establishing goals specifying how to achieve them
107 terms
Managerial Accounting
Budget
Chief financial officer (CFO)
Control
Controller
Quantitative expression of a proposed plan of action by manag…
Executive responsible for overseeing the financial operations…
Taking actions that implement the planning decisions, decidin…
The financial executive primarily responsible for management…
Budget
Quantitative expression of a proposed plan of action by manag…
Chief financial officer (CFO)
Executive responsible for overseeing the financial operations…
43 terms
Managerial Accounting Exam 1
What are the differences between Finan…
CEO:
COO:
CFO:
-hired on by the board of directors... -manages the company on a…
-hired on by the CEO... -manages day to day operations and repor…
-hired on by the CEO... -handles the finical accounting, manager…
What are the differences between Finan…
CEO:
-hired on by the board of directors... -manages the company on a…
Managerial accounting
Planning
Controlling
Improving
Product cost
Used by management to develope the company's objectives
Monitoring the operations results of implemented plans and co…
Used by management to develop the company's objectives
Consist of manufacturing costs: direct materials, direct labo…
Planning
Used by management to develope the company's objectives
Controlling
Monitoring the operations results of implemented plans and co…
22 terms
Managerial Accounting Chapter 12
Activity Analysis
Appraisal Costs
Balanced Scorecard
Benchmarking
Monitoring activities to assess which activities add value to…
Costs of quality that are incurred to monitor and inspect pro…
A tool that integrates financial and nonfinancial performance…
Comparing operations, costs, and productivity with world-clas…
Activity Analysis
Monitoring activities to assess which activities add value to…
Appraisal Costs
Costs of quality that are incurred to monitor and inspect pro…
26 terms
Managerial Accounting Chapter 2
Account Analysis
Break-Even Analysis
Break-Even Chart
Break-Even Point
A method of estimating fixed and variable costs by classifyin…
An approach that examines the interaction of factors that... inf…
A graph showing cost and revenue functions together with a br…
The point where total revenues equal total costs.
Account Analysis
A method of estimating fixed and variable costs by classifyin…
Break-Even Analysis
An approach that examines the interaction of factors that... inf…
Managerial Accounting
Cost behavior refers to the methods us…
Cost behavior refers to the manner in…
The variable cost per unit remains con…
Monthly rent on a factory building tha…
false
true
true
true
Cost behavior refers to the methods us…
false
Cost behavior refers to the manner in…
true
13 terms
**** managerial accounting
Cost Driver
Relevent range
variable costs
Do fixed costs remain the same regardl…
What triggers a change in an activity
The range where we expect our assumptions of cost behavior to…
they change in total in direct proportion to changes in activ…
YES
Cost Driver
What triggers a change in an activity
Relevent range
The range where we expect our assumptions of cost behavior to…
30 terms
Managerial Accounting Chapter 3
Actual Costing
Applied Factory Overhead
Assembled Products
Commingled Products
A costing system in which product costs consist of actual dir…
The amount of factory overhead cost determined by the... product…
Products produced by bringing parts and subassemblies together.
Products in which one unit cannot be distinguished from any o…
Actual Costing
A costing system in which product costs consist of actual dir…
Applied Factory Overhead
The amount of factory overhead cost determined by the... product…
28 terms
Managerial Accounting
Direct Materials
Direct Labor
Manufacturing Overhead
Indirect materials
raw materials that become an integral part of the finished pr…
Those labor costs that can be easily traced to individual uni…
Manufacturing costs that cannot be easily traced directly to…
Materials used to support the production process.... Examples:…
Direct Materials
raw materials that become an integral part of the finished pr…
Direct Labor
Those labor costs that can be easily traced to individual uni…
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