Study sets matching "ch22law for accountants"

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Study sets matching "ch22law for accountants"

Principles of Accounting Chapter 22
Activity index
Break-even point
Contribution margin (CM)
Contribution margin ratio
The activity that causes changes in the behavior of costs.
The level of activity at which total revenue equals total cos…
The amount of revenue remaining after deducting variable costs.
The percentage of each dollar of sales that is available to a…
Activity index
The activity that causes changes in the behavior of costs.
Break-even point
The level of activity at which total revenue equals total cos…
Accounting Chapter 22
Periodic Inventory
Perpetual Inventory
Inventory Record
Stock Record
A merchandise inventory determined by counting, weighing, or…
A merchandise inventory determined by keeping a continuous re…
A form used during a periodic inventory to record information…
a form used to show the kind of merchandise, quantity receive…
Periodic Inventory
A merchandise inventory determined by counting, weighing, or…
Perpetual Inventory
A merchandise inventory determined by keeping a continuous re…
42 terms
Accounting Chapter 22
Budget Process
Budget
Focus of budget analysis
**All managers should be involved**
Process of planning future activities
formal statement of future short term financial plans
future
...
Budget Process
Process of planning future activities
Budget
formal statement of future short term financial plans
Chapter 22: Performance Measurement and Responsibility Accounting (Learnsmart)
A division of a manufacturing company…
Controllable Costs
Steps to preparing Departmental Income…
Purposes of a Responsibility Accountin…
...accept the project because the return is greater than the…
A cost for which a manager has the power to determine or at l…
1. Accumulating revenue and direct expenses by department.... 2…
A. Evaluate manager's performance.... B. Assign costs and expen…
A division of a manufacturing company…
...accept the project because the return is greater than the…
Controllable Costs
A cost for which a manager has the power to determine or at l…
19 terms
Cost Accounting Chapter 22
Transfer Pricing
Transfer price
intermediate product
Criteria for transfer pricing
determination of an exchange price when business units make a…
price charged from selling BU to buying BU
transferred among BUs, worked further or sold to other busine…
-price should promote goal congruence... -should induce manageme…
Transfer Pricing
determination of an exchange price when business units make a…
Transfer price
price charged from selling BU to buying BU
Chapter 22 Managerial Accounting
Primary Goals of Responsibility Accoun…
Accounting information uses
Types of accounting departments
What is a profit center
1. Provide information for managers to use in performance eva…
1. Control operations... 2. Appraisal performance... 3. Allocate re…
1. Profit center... 2. Cost center... 3. Investment center
ability to generate revenues in excess of expenses
Primary Goals of Responsibility Accoun…
1. Provide information for managers to use in performance eva…
Accounting information uses
1. Control operations... 2. Appraisal performance... 3. Allocate re…
27 terms
Chapter 22 Accounting 2
Centralized (pg.143)
Decentralized (pg.144)
Responsibility Center (pg.144)
Cost Center (pg.144)
A business style where top leaders make and direct most impor…
A business style where top leaders concentrates on strategy,…
The part of an organization under the control of a manager... *…
An area of responsibility under the control of a manager who…
Centralized (pg.143)
A business style where top leaders make and direct most impor…
Decentralized (pg.144)
A business style where top leaders concentrates on strategy,…
18 terms
Accounting 202 - Chapter 22
Budgetary Control
Controllable Cost
Controllable Margin
Cost Center
The use of budgets to control operations.
A cost over which a manager has control.
Contribution margin less controllable fixed costs.
A responsibility center that incurs costs but does not direct…
Budgetary Control
The use of budgets to control operations.
Controllable Cost
A cost over which a manager has control.
Accounting: Chapter 22 Vocab
cash flow
operating activities
investing activities
financing activities
the cash receipts and cash payments of a company
the expenses incurred by a business in its normal operations
cash receipts and cash payments involving the sale or purchas…
cash receipts and payments involving debt or equity transacti…
cash flow
the cash receipts and cash payments of a company
operating activities
the expenses incurred by a business in its normal operations
18 terms
Accounting Chapter 22
decentralized organizations
cost center
profit center
investment center
An organization in which decision-making authority is not con…
a responsibility center that incurs costs but does not direct…
A responsibility center that incurs costs and also generates…
A responsibility center that incurs costs, generates revenues…
decentralized organizations
An organization in which decision-making authority is not con…
cost center
a responsibility center that incurs costs but does not direct…
8 terms
Accounting Chapter 22 Definitions
cash flow
defaulting
financing activities
foreclosure
The cash receipts and cash payments of a company.
Not making payments on a loan when they are due.
Cash receipts and payments involving debt or equity transacti…
When the bank or finance company takes possession of mortgage…
cash flow
The cash receipts and cash payments of a company.
defaulting
Not making payments on a loan when they are due.
Accounting 2 Chapter 22
Budget
Budgetary Slack
Capital Expenditures Budget
Cash Budget
A financial plan that managers use to coordinate a business's…
the amount by which a manager intentionally underestimates bu…
The budget summarizing future plans for acquiring fixed asset…
Projects revenues in expenses, showing inflow and output of c…
Budget
A financial plan that managers use to coordinate a business's…
Budgetary Slack
the amount by which a manager intentionally underestimates bu…
32 terms
Accounting 240 - Chapter 22
Cost Volume Profit deals with what two…
Cost behavior analysis
Business activity in cost behavior ana…
__________ in total change proportiona…
1. How do costs respond to changes in sales volume?... 2. What e…
Studies how specific cost respond to changes in the level of…
Units sold and units produced
variable costs
Cost Volume Profit deals with what two…
1. How do costs respond to changes in sales volume?... 2. What e…
Cost behavior analysis
Studies how specific cost respond to changes in the level of…
Accounting Chapter 22 Vocab
change fund
petty cash fund
petty cash disbursement
petty cashier
amount of money, consisting of varying denominations of bills…
fund in which small, incidental cash payments are made from
any payment made from petty cash fund
person responsible for maintaining petty cash fund and for ma…
change fund
amount of money, consisting of varying denominations of bills…
petty cash fund
fund in which small, incidental cash payments are made from
23 terms
Accounting Chapter 22
Activity Based Costing (ABC) Method
Budget Performance Report
budgeted variable factory overhead
controllable variance
A cost allocation method that identifies activities causing t…
A report comparing actual results with budget figures. (1006)
The standard variable overhead for the actual units produced.
The difference between the actual amount of variable factory…
Activity Based Costing (ABC) Method
A cost allocation method that identifies activities causing t…
Budget Performance Report
A report comparing actual results with budget figures. (1006)
34 terms
Intermediate Accounting Chapter 22
Correction of understated depreciation…
Change in reporting entity, change in…
Retrospective
Requires not restatement of prior year…
Is not one of the three types of accoutning changes
Three types of accounting changes
The approach the Fasb require when accounting for changes in…
A change from FIFO to LIFO inventory valuation which leads to…
Correction of understated depreciation…
Is not one of the three types of accoutning changes
Change in reporting entity, change in…
Three types of accounting changes
Accounting 2037 Chapter 22
common stock
bonds
no significant influence
significant influence
the ownership unit of a corporation and that common stockhold…
type of note in which a company agrees to pay the holder the…
less than 20% ownership, company has an investment in "availa…
between 20% and 50%. Company has an equity investment
common stock
the ownership unit of a corporation and that common stockhold…
bonds
type of note in which a company agrees to pay the holder the…
16 terms
Chapter 22 - Accounting Changes & Errors
Cumulative Effect
Retrospective Application
Indirect Effect
Prior Period Adjustments
The difference in prior years' income between the newly adopt…
The application of a different accounting principle to recast…
Any change to current or future cash flows of a company that…
Companies record corrections of errors from prior periods as…
Cumulative Effect
The difference in prior years' income between the newly adopt…
Retrospective Application
The application of a different accounting principle to recast…
7 terms
Accounting 2- Chapter 22
Change Fund
Petty Cash Fund
Petty Cash Disbursement
Petty Cashier
An amount of money, consisting of varying of denominations of…
Cask Kept on hand for making small incidental cash payments
any payment made from the petty cash fund
the person responsible for maintain the petty cash
Change Fund
An amount of money, consisting of varying of denominations of…
Petty Cash Fund
Cask Kept on hand for making small incidental cash payments
Accounting Chapter 22
4 Budgeting Objectives
Coordination and Communication
Benchmarking
Budgetary Slack
Develop strategies, Plan, Act, Control
Coordinates company's activities. Requires managers at differ…
Motivates employees and helps managers evaluate performance.…
When managers intentionally understate expected revenues or o…
4 Budgeting Objectives
Develop strategies, Plan, Act, Control
Coordination and Communication
Coordinates company's activities. Requires managers at differ…
Accounting II- Chapter 22
Change Fund
Petty Cash Fund
Petty Cash Disbursement
Petty Cashier
an amount of money, consisting of varying denominations of bi…
Small, incidental cash payments are made from this account
any payment made from the petty cash fund
the person responsible for maintaining the petty cash fund an…
Change Fund
an amount of money, consisting of varying denominations of bi…
Petty Cash Fund
Small, incidental cash payments are made from this account
6 terms
Accounting Chapter 22
Standards
standard cost systems
ideal standards
Currently attainable standards
are performance goals.... Manufacturing companies normally use s…
Accounting systems that use standards for... product costs are c…
Unrealistic standards that can be achieved only... under perfect…
sometimes... called normal standards, can be attained with reaso…
Standards
are performance goals.... Manufacturing companies normally use s…
standard cost systems
Accounting systems that use standards for... product costs are c…
Chapter 22 Accounting
Cash Flow
Statement of Cash Flows
Operating Activities
Investing Activities
The cash receipts and cash payments of a company.
A financial statement that summarizes cash receipts and cash…
The cash receipts and payments necessary to operate a busines…
Cash receipts and cash payments involving the sale or purchas…
Cash Flow
The cash receipts and cash payments of a company.
Statement of Cash Flows
A financial statement that summarizes cash receipts and cash…
Accounting Chapter 22 Terms
Cash Flow
Statement of Cash Flows
Operating Activities
Investing Activities
The cash receipts and cash payments of a company.
A financial statement that summarizes cash receipts and cash…
The cash receipts and payments necessary to operate a busines…
Cash receipts and cash payments involving the sale or purchas…
Cash Flow
The cash receipts and cash payments of a company.
Statement of Cash Flows
A financial statement that summarizes cash receipts and cash…
Accounting Chapter 22 & 23
budgets
debit balance
responsibility center
sales budget
formal written statement of management's plan for the future
using a standard cost system, this entry signifies an unfavor…
budgetary unit of an organization led by a manager that has b…
first budget completed in the master budget
budgets
formal written statement of management's plan for the future
debit balance
using a standard cost system, this entry signifies an unfavor…
Managerial Accounting Chapter 22
Standards
Product Costs
Standard Cost Systems
Standard cost
Performance goals
DM, DL, OH
accounting systems that use standards for product costs
How much a product should cost
Standards
Performance goals
Product Costs
DM, DL, OH
Accounting Chapter 22
Standard costs
Standard costing
Variance analysis
Standard direct materials cost
realistic estimates of costs based on analyses of both past a…
method of cost control that is used to compare the difference…
process of computing the differences between standard costs a…
price that should be paid for the materials
Standard costs
realistic estimates of costs based on analyses of both past a…
Standard costing
method of cost control that is used to compare the difference…
45 terms
accounting chapter 22
budgetary control
budget reports
formalized reporting system does the f…
static budget report
the use of budgets in controlling operations
compare actual results with planned objectives... provide manag…
1. identifies the name of the budget report... 2. states the fre…
is a projection of data at one level of activity... always comp…
budgetary control
the use of budgets in controlling operations
budget reports
compare actual results with planned objectives... provide manag…
29 terms
Chapter 22 Accounting
true
Financial Statements are prepared usin…
All accounts that need to be brought u…
To bring the supplies account up to da…
The unadjusted trial balance and other financial data are use…
False
False
True
true
The unadjusted trial balance and other financial data are use…
Financial Statements are prepared usin…
False
accounting chapter 22
flexible budget
static budget
static budget
continuous budget
shows how much the company plans to spend at various levels o…
is a budget prepared for a department whose planned spending…
is a budget for a department that operates at only one level…
when a company begins a year looking 12 months ahead, and onc…
flexible budget
shows how much the company plans to spend at various levels o…
static budget
is a budget prepared for a department whose planned spending…
10 terms
Accounting Chapter 22 Terms
Cash proof
Change fund
Petty cash disbursement
Petty cash fund
a four-column bank reconciliation that is generally used to d…
an amount of money, consisting of varying denominations of bi…
any payment made from the petty cash fund
small, incidental cash payments made from this fund
Cash proof
a four-column bank reconciliation that is generally used to d…
Change fund
an amount of money, consisting of varying denominations of bi…
14 terms
Accounting chapter 22
Equity investments
Types of investments in common stock
Types of investments in bonds
Market prices of stocks and bonds
- corporations are legal entities so they can own stock in an…
- no influence.... market value method ... - significant influen…
- available-for-sale.... market value method ... - held-to-matur…
- publicly traded companies ... - stockbroker ... - stock exchange…
Equity investments
- corporations are legal entities so they can own stock in an…
Types of investments in common stock
- no influence.... market value method ... - significant influen…
5 terms
Accounting chapter 22
standard costs
variance analysis
standard direct materials cost
standard overhead cost
realistic elements of costs based on analyses of both past an…
the process of computing the differences between standard cos…
the standard price for direct materials multiplied by the sta…
the sum of the estimates of variable and fixed overhead costs…
standard costs
realistic elements of costs based on analyses of both past an…
variance analysis
the process of computing the differences between standard cos…
22 terms
Accounting - Chapter 22
Budgets
Budgeting affects the following manage…
Planning
Directing
Ac accounting device used to plan and control resources of op…
Planning... Directing ... Controlling
Involves setting goals to guide decisions and help motivate e…
Involves decisions and actions to achieve budgeted goals.
Budgets
Ac accounting device used to plan and control resources of op…
Budgeting affects the following manage…
Planning... Directing ... Controlling
Accounting Chapter 22
change fund
establish
attach
petty cash fund
An amount of money, consisting of varying denominations of bi…
Set up, create, start, begin, launch.
Fasten, join, connect, put together.
Cash kept on hand for making small incidental cash payments.
change fund
An amount of money, consisting of varying denominations of bi…
establish
Set up, create, start, begin, launch.
Accounting Vocab Chapter 22
Responsibility accounting system
Profit center
Cost center
Investment center
System that provides information that management can use to e…
Business unit that incurs costs and generates revenues
Department that incurs costs but generates no revenues; commo…
Center of which a manager is responsible for revenues, costs,…
Responsibility accounting system
System that provides information that management can use to e…
Profit center
Business unit that incurs costs and generates revenues
16 terms
Accounting Chapter22 terms
Profit Center
Cost Center
Investment Center
Departmental Accounting system
Incurs costs and generates revenues
Incurs costs without directly yielding revenues
Holds manager responsible for revenues, costs and investments
provides information used to evaluate the performance of a de…
Profit Center
Incurs costs and generates revenues
Cost Center
Incurs costs without directly yielding revenues
14 terms
Accounting Chapter 22
Change in Accounting Principle
If it is impracticable to determine th…
Required Disclosures
Change in Accounting Estimate
Retrospectively - reported backward, retained earnings. Resta…
the entity shall apply the new prinple as if the change was m…
the nature of and justification for the change. The effect of…
reported prospectively - current and future periods. Do not r…
Change in Accounting Principle
Retrospectively - reported backward, retained earnings. Resta…
If it is impracticable to determine th…
the entity shall apply the new prinple as if the change was m…
18 terms
Accounting chapter 22
Budgetary control
Controllable cost
Controllable margin
Cost center
The use of budgets to control operations
A cost over which a manager has control
Contribution margin less controllable fixed costs
A responsibility center that incurs costs but does not direct…
Budgetary control
The use of budgets to control operations
Controllable cost
A cost over which a manager has control
17 terms
Accounting chapter 22-24
flexible budget
standard cost
budgeted cost
standard price
projects budget data for various levels of activity; a series…
a predetermined unit cost used to measure performance; direct…
an estimated cost for total amount of production based on sta…
the expected purchase price per unit for raw materials from a…
flexible budget
projects budget data for various levels of activity; a series…
standard cost
a predetermined unit cost used to measure performance; direct…
17 terms
Accounting Chapter 22
budgetary control
controllable cost
controllable margin
cost center
use of budgets to control operations
cost over which a manager has control
contribution margin less controllable fixed costs
responsibility center that incurs costs but does not directly…
budgetary control
use of budgets to control operations
controllable cost
cost over which a manager has control
Chapter 22 Accounting
Activity Index
Break Even Point
Contribution Margin
Contribution Margin per unit
The activity that causes changes in the behavior of costs
The level of activity at which total revenues equal total costs
The amount of revenue remaining after deducting variable costs
The amount of revenue remaining per unit after deducting vari…
Activity Index
The activity that causes changes in the behavior of costs
Break Even Point
The level of activity at which total revenues equal total costs
12 terms
Accounting II - Chapter 22
budget
budgetary slack
strategic budget
operational budget
a financial plan that mangers use to coordinate a business's…
occurs when managers intentionally understate expected revenu…
a long-term financial plan used to coordinate the activities…
a short-term financial plan used to coordinate the activities…
budget
a financial plan that mangers use to coordinate a business's…
budgetary slack
occurs when managers intentionally understate expected revenu…
25 terms
Chapter 22 Accounting
3 types
Change in accounting principle
Report changes currently
Report changes retrospectively
of change are:... 1. Change in accounting principle: a change f…
involves a change from one generally accepted accounting prin…
in this approach companies report the cumlative effect of the…
Retrospective application refers to the application of a diff…
3 types
of change are:... 1. Change in accounting principle: a change f…
Change in accounting principle
involves a change from one generally accepted accounting prin…
Chapter 22-Financial Accounts
Income Statement
Income Statement Order-remember
Gross Profit
Sales Revenue (Or sales turnover)
Records the revenue, costs and profit and loss of a business…
st-cos=gp-oh=np-i=ptp-t@20=pat-dts=rp
Sales revenue-cost of sales
The total value of sales made during the trading period=selli…
Income Statement
Records the revenue, costs and profit and loss of a business…
Income Statement Order-remember
st-cos=gp-oh=np-i=ptp-t@20=pat-dts=rp
7 terms
Cost Accounting Chapter 22
Decentralization
Cost center, revenue center, profit ce…
Transfer Price
Intermediate Product
An organizational structure that gives managers at lower leve…
4 types of responsibility centers
the price one subunit charges for a product or service suppli…
The product or service transferred between subunits of an org…
Decentralization
An organizational structure that gives managers at lower leve…
Cost center, revenue center, profit ce…
4 types of responsibility centers
Accounting chapter 22
Periodic inventory
Perpetual inventory
Inventory record
Stock record
A merchandise inventory determined by counting, weighing, or…
A merchandise inventory determined by keeping a continuous re…
A form used during a periodic inventory to record information…
A form used to show the kind of merchandise, quantity receive…
Periodic inventory
A merchandise inventory determined by counting, weighing, or…
Perpetual inventory
A merchandise inventory determined by keeping a continuous re…
21 terms
Accounting Chapter 22 Vocab
Amortization
Bond
Bond indenture
Bond sinking funds
The process of adjusting the bond interest expense account fo…
A written promise to pay a specific sum of money at a specifi…
The formal written argument for issuing bonds.
The accumulation and investment of money over a period of yea…
Amortization
The process of adjusting the bond interest expense account fo…
Bond
A written promise to pay a specific sum of money at a specifi…
Accounting Chapter 22
budget
budgetary slack
strategic budget
operational budget
a financial plan that managers use to coordinate a business's…
occurs when managers intentionally understate expected revenu…
a long term financial plan used to coordinated the activities…
a short-term financial plan used to coordinate the activities…
budget
a financial plan that managers use to coordinate a business's…
budgetary slack
occurs when managers intentionally understate expected revenu…
Accounting Chapter 22
periodic inventory
perpetual inventory
inventory record
stock record
a merchandise inventory determined by counting weighing or me…
a merchandise inventory determined by keeping a continuous re…
a form used during a periodic inventory to record information…
a form used to show the kind of merchandise quantity received…
periodic inventory
a merchandise inventory determined by counting weighing or me…
perpetual inventory
a merchandise inventory determined by keeping a continuous re…
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