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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
15 terms
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…
15 terms
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…
33 terms
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
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
54 terms
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…
25 terms
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…
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…
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
17 terms
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
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:…
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
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 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…
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…
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
92 terms
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…
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
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…
49 terms
Managerial Accounting
What is financial accounting?
Accounting CAPTURES
Financial Accounting's Objective is to…
Primary Users
The preparation and use of accounting information... That is…
Economic Events
Evaluate the financial position and performance of a company.…
Management, Investment Professionals, Government Agencies, Sh…
What is financial accounting?
The preparation and use of accounting information... That is…
Accounting CAPTURES
Economic Events
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…
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
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…
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…
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
25 terms
BUS 108 (USING ACCOUNTING INFORMATION TO MAKE MANAGERIAL DECISIONS)
TYPES OF DECISIONS
Need Information (what kind?)
IDENTIFYING RELEVANT... INFORMATION
WHAT IS RELEVANT INFORMATION?
1. Accept a special order... 2. Make or buy; outsourcing... 3. Keep…
Accurate information... Timely Information - can't wait forever…
...
Information that is directly related to the decision being ma…
TYPES OF DECISIONS
1. Accept a special order... 2. Make or buy; outsourcing... 3. Keep…
Need Information (what kind?)
Accurate information... Timely Information - can't wait forever…
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
47 terms
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…
83 terms
Managerial Accounting
function of management acct
management functions
different parts of value chain
difference between managerial & financ…
to facilitate the efficient creation of value at all levels b…
1. decision making... 2. planning... 3. directing operational activ…
R&D, design, production, marketing, distribution, customer se…
managerial: private info for management, forward-looking, not…
function of management acct
to facilitate the efficient creation of value at all levels b…
management functions
1. decision making... 2. planning... 3. directing operational activ…
15 terms
Managerial Accounting
Contribution Margin
Selling Price
Variable Cost
Break Even Point (Units)
CM
SP
VC
BE(u)
Contribution Margin
CM
Selling Price
SP
99 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
17 terms
Managerial Accounting
Value Chain
Cost Object
Sarbanes-Oxley Act of 2002
Service Company
a network of value-creating activities
Anything for which managers want a separate measurement of cost
To insure the accuracy and fair reporting of these financial…
A company that sells intangible services rather than tangible…
Value Chain
a network of value-creating activities
Cost Object
Anything for which managers want a separate measurement of cost
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
66 terms
Managerial Accounting
Calculate Asset Turnover
The higher the asset turnover
Calculate return on assets
You classify product costs as
Sales revenue divided by average assets
The more productive the company
Net income divided by average assets
inventory, an asset on the balance sheet, until you actually…
Calculate Asset Turnover
Sales revenue divided by average assets
The higher the asset turnover
The more productive the company
10 terms
Managerial Accounting
Return on Equity (ROE)
Earnings per Share (EPS)
Profit Margin
Current Ratio
Net Income/Avg. Stockholders Equity
Net Income/ Avg. # Common Shares Outstanding
Net Income/Net Sales
Current Assets/Current Liabilities
Return on Equity (ROE)
Net Income/Avg. Stockholders Equity
Earnings per Share (EPS)
Net Income/ Avg. # Common Shares Outstanding
23 terms
Managerial Accounting
Importance of Budgeting
Benefits of Budgeting
Budget
Profit rich an cash poor
1. To assign decision making authority over company resources…
1. Enhanced management Responsibility... 2. Assignment of decisi…
Comprehensive financial plan for future operations, expected…
When a business has cash flow problems and their cash is tied…
Importance of Budgeting
1. To assign decision making authority over company resources…
Benefits of Budgeting
1. Enhanced management Responsibility... 2. Assignment of decisi…
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…
11 terms
managerial accounting
Organizations achieve control by:
Behavioral implications1
Behavioral implications2
Four standars of ethical conduct for m…
Evaluating managers - rewarded or punished... Evaluating operati…
ㅇ people react when they're being measured... ㅇ focus on measure…
ㅇ management accountants must understand reactions of individ…
ㅇ Competence... ㅇ Confidentiality ... ㅇ Integrity... ㅇ Objectivity
Organizations achieve control by:
Evaluating managers - rewarded or punished... Evaluating operati…
Behavioral implications1
ㅇ people react when they're being measured... ㅇ focus on measure…
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…
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…
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…
27 terms
Managerial Accounting
Difference between a merchandising and…
diff between a merchandising and a man…
similarities between job order and pro…
four main diff between job and process
a manufacturing Cost of goods sold section shows beginning an…
in the current assets section; man: pre send three inventory…
1. both teach the same cost elements... 2. both accumulate costs…
1. process cost system uses separate accounts for each depart…
Difference between a merchandising and…
a manufacturing Cost of goods sold section shows beginning an…
diff between a merchandising and a man…
in the current assets section; man: pre send three inventory…
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.
54 terms
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
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