Study sets matching "management accounting"

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Study sets matching "management accounting"

Management Accounting
Financial statement analysis
investing activities
financing activities
Objective of External Financial Report…
Using the financial statement of other companies to identify…
asset acquisition activities
borrowing funds from creditors or selling stock to investors…
to provide useful economic information to external users for…
Financial statement analysis
Using the financial statement of other companies to identify…
investing activities
asset acquisition activities
74 terms
Management Accounting
Managerial Accounting
Similarities
Internal Users
External Users
A field of accounting that provides... economic and financial in…
Both deal with economic events of a business... Both require tha…
Officers and managers used for managerial accounting
Shareholders, creditors and regulators used for financial acc…
Managerial Accounting
A field of accounting that provides... economic and financial in…
Similarities
Both deal with economic events of a business... Both require tha…
35 terms
Accounting and Management
Relevant and intelligent information =
Data presented in a form that is usefu…
Numerical or verbal descriptions that…
A single collection of data and inform…
less risk
information
data
database
Relevant and intelligent information =
less risk
Data presented in a form that is usefu…
information
Management Accounting
Traditional Costing
ABC Costing
Predetermined Overhead Rate
What are issues with traditional costi…
1) Only allocate manufacturing overheads... 2) Allocate all manu…
1) Allocate manufacturing and non manufacturing... 2) Exclude so…
Budgeted overhead costs/Budgeted level of activity
- If you automated some of your processes, allocating labor h…
Traditional Costing
1) Only allocate manufacturing overheads... 2) Allocate all manu…
ABC Costing
1) Allocate manufacturing and non manufacturing... 2) Exclude so…
76 terms
Management accounting
Available for use:
Direct materials used
Manufacturing costs incurred during th…
Goods available for sale
BI direct materials + Purchase direct material
BI direct materials + Purchase direct material ... -EI direct ma…
BI direct materials + purchase direct material... -EI direct mat…
BI direct materials + Purchase direct material... -EI direct mat…
Available for use:
BI direct materials + Purchase direct material
Direct materials used
BI direct materials + Purchase direct material ... -EI direct ma…
7 terms
Management Accounting
Management accounting
Planning
Control
Cost Accounting
Collection, recording, storage and summary of financial and n…
Includes long-term planning such as strategic or corporate pl…
Comparison of actual with planned performance. Unacceptable d…
Collection of ongoing costs and revenues which are recorded i…
Management accounting
Collection, recording, storage and summary of financial and n…
Planning
Includes long-term planning such as strategic or corporate pl…
Accounting - management
___ is a comprehensive system for coll…
to perform these functions, accountant…
___ ___ ___ is an organized procedure…
list of 5 companies who do bookkeeping
accounting
bookkeeping
Accounting information system (AIS)
oracle, peoplesoft quickbooks, lawson, SAP
___ is a comprehensive system for coll…
accounting
to perform these functions, accountant…
bookkeeping
15 terms
Management Accounting
Assets
Balance sheet
Cost of goods sold
Expenses
Resources that either have value or can be used to produce so…
A statement that highlights what a business owes (liabilities…
What the company needed to spend (payments to suppliers, ect.…
The money going out of the business. Can include money spent…
Assets
Resources that either have value or can be used to produce so…
Balance sheet
A statement that highlights what a business owes (liabilities…
Management Accounting Chapter 1
Corporate Governance
Detective Control
Internal Control
Preventative Control
The system by which a company is directed and controlled
A control that detects undesirable events that have already o…
A process designed to provide reasonable assurance that objec…
A control that deters undesirable events from occurring.
Corporate Governance
The system by which a company is directed and controlled
Detective Control
A control that detects undesirable events that have already o…
16 terms
Management Accounting Chapter 4
Cost Object
Consumable Resource
Flexible Resource
Capacity-Related Resource
Anything for which a cost is computed.
A resource whose cost depends on the amount of resource that…
AKA Consumable Resource
A resource that its cost depends on the amount of resource ca…
Cost Object
Anything for which a cost is computed.
Consumable Resource
A resource whose cost depends on the amount of resource that…
35 terms
Management Accounting Chapter 3
Cost plus pricing
Target costing
Variable cost
Fixed cost
In markets where the organization can set its price, organiza…
Focus efforts in product and process design on developing a p…
A cost that increases proportionally with changes in the acti…
A cost that does not vary in the short run with a specified a…
Cost plus pricing
In markets where the organization can set its price, organiza…
Target costing
Focus efforts in product and process design on developing a p…
Management Accounting
Material Price Variance (Material Vari…
Material Quantity Variance (Material V…
Labour Rate Variance (Labour Variance)
Labour Efficiency Variance (Labour Var…
MPV = AQ(AP-SP)
MQV = SP(AQ-SQ)
LRV = AH(AR-SR)
LEV = SR(AH-SH)
Material Price Variance (Material Vari…
MPV = AQ(AP-SP)
Material Quantity Variance (Material V…
MQV = SP(AQ-SQ)
Cost Accounting The Manager and Management Accounting
Budget
Chief Financial Officer
Control
Controller
The Quantitative expression of a proposed plan of action by m…
The executive responsible for overseeing the financial operat…
allowing managers to compare actual performance to budgeted p…
The financial executive primarily responsible for management…
Budget
The Quantitative expression of a proposed plan of action by m…
Chief Financial Officer
The executive responsible for overseeing the financial operat…
Management accounting
contribution margin
contribution margin ratio
CM & CM Ratio
Breakeven Point
sales - variable costs
contribution margin / sales
used as a short term decision making tool to assess the impli…
the level of sales activity whereby all income equals all exp…
contribution margin
sales - variable costs
contribution margin ratio
contribution margin / sales
47 terms
Management Accounting
Relevant Costs
Irrelevant Costs
Opportunity Costs
Costing decisions
Relevant costs differ among alternatives and mostly relate to…
Sunk Costs are past costs that have already been incurred and…
Opportunity cost refers to a benefit that a person could have…
...
Relevant Costs
Relevant costs differ among alternatives and mostly relate to…
Irrelevant Costs
Sunk Costs are past costs that have already been incurred and…
8 terms
Management Accounting
Management
Planning, Organizing, Controlling
Planning
Organizing
The process of planning, organizing, and controlling tasks to…
What are the basic functions of management
Setting immediate and long term objectives.... Deciding which al…
Deciding how to utilize available resources as plans are carr…
Management
The process of planning, organizing, and controlling tasks to…
Planning, Organizing, Controlling
What are the basic functions of management
12 terms
Management Accounting
Cost Accounting
Financial Accounting
Management Accounting
a data warehouse
measures, analyses and reports financial and non financial in…
focuses on reporting to external users including investors, c…
measures, analyses and reports financial and non financial in…
is built over time to meet needs of all quarters in the organ…
Cost Accounting
measures, analyses and reports financial and non financial in…
Financial Accounting
focuses on reporting to external users including investors, c…
22 terms
Management Accounting
Standard costing
Variance
Control system
Control accounting
A predetermined cost based on technical estimates of material…
The difference between the actual performance and the standar…
A set of formal and informal systems that assist the manageme…
A system to analyze the accounting information through compar…
Standard costing
A predetermined cost based on technical estimates of material…
Variance
The difference between the actual performance and the standar…
37 terms
Management Accounting 71202
Absorption costing
Variable costing
Differences between variable and absor…
Prime Cost
all manufacturing costs (direct material, direct labour and m…
direct material, direct labour and only variable manufacturin…
Both methods assign direct materials, direct labour and varia…
the costs of direct material and direct labour incurred to pr…
Absorption costing
all manufacturing costs (direct material, direct labour and m…
Variable costing
direct material, direct labour and only variable manufacturin…
22 terms
Management Accounting
Cost accounting
Cost accountancy
Cost control
Cost object
The process of accounting for cost. It begins with the record…
The application of costing and cost accounting principles, me…
It involves comparing actual costs with the targeted costs an…
It refers to any product, service, activity, function, or job…
Cost accounting
The process of accounting for cost. It begins with the record…
Cost accountancy
The application of costing and cost accounting principles, me…
Accounting management
Cash budget
Sales budget
Production budget
Capital expenditure budget
Estimates cash reciepts and payments for the period so surplu…
To determine estimated sales volume and dollars for a period…
Estimates production volume and cost of production for a peri…
Estimates costs of purchasing new equipment
Cash budget
Estimates cash reciepts and payments for the period so surplu…
Sales budget
To determine estimated sales volume and dollars for a period…
126 terms
Management Accounting
Direct materials
Direct labor
Manufacturing overhead
Indirect labor
Those materials that become an integral part of the productio…
Those labor costs that can be easily traced to individual uni…
Refers to indirect factory-related costs that are incurred wh…
Wages paid to employees who are not directly involved in prod…
Direct materials
Those materials that become an integral part of the productio…
Direct labor
Those labor costs that can be easily traced to individual uni…
Management Accounting
Working Capital
Current ratio
Acid-test ratio
Cash ratio
Current assets-Current liabilities
Current assets÷Current liabilities
Cash+Short-term investments+Net Current receivables (Accounts…
(Cash+Short Term Marketable Securities)÷ Current liabilities
Working Capital
Current assets-Current liabilities
Current ratio
Current assets÷Current liabilities
22 terms
Management Accounting
Contract price
Escalation clause
Retention money
Work certified
The amount that is agreed to be paid by the contractee to the…
A clause in the contract to safeguard the interest on the con…
The money that is agreed upon, which a contractor requires to…
The value of work done as certified by the architect.
Contract price
The amount that is agreed to be paid by the contractee to the…
Escalation clause
A clause in the contract to safeguard the interest on the con…
22 terms
Management accounting
Absorption of overheads
Administrative overheads
Allocation of overheads
Apportionment
The allotment of overheads to the cost units.
The aggregate of all indirect expenses regarding administrati…
The allotment of indirect costs to the cost centers or the co…
The charging to a cost center the fair share of common overhe…
Absorption of overheads
The allotment of overheads to the cost units.
Administrative overheads
The aggregate of all indirect expenses regarding administrati…
22 terms
management accounting
Batch costing
EBQ
Job costing
Production order
A form of specific order costing which applies when similar a…
A batch quantity where carrying costs and set-up costs are th…
A form of specific order costing which is applied when work i…
It contains all the information that is relevant to the shop…
Batch costing
A form of specific order costing which applies when similar a…
EBQ
A batch quantity where carrying costs and set-up costs are th…
Management Accounting
Planning
Directing and Motivating
Controlling
Decision Making
Identify alternatives. Select alternative that does the bet j…
managing day-to-day activities to keep the organization runni…
ensures that plans are being followed. Feedback in the form o…
the ability to make intelligent, data driven decisions. 3 qs,…
Planning
Identify alternatives. Select alternative that does the bet j…
Directing and Motivating
managing day-to-day activities to keep the organization runni…
18 terms
Management Accounting
Kosten
Kaskosten
Uitgaven
Trapfunctie
Enkel doelmatig offer om tot prestatie te komen (staat los va…
Gekoppeld aan betaling
Geen doelmatig offer; vereffening schuld
Of stapfunctie; stijgen of dalen van vaste kosten
Kosten
Enkel doelmatig offer om tot prestatie te komen (staat los va…
Kaskosten
Gekoppeld aan betaling
114 terms
Management Accounting
Management accounting
Activities carried out by managers
Planning
Directing and motivating
Management accounting is concerned with providing information…
Managers everywhere carry out four major activities. Planning…
Involves selecting a course of action and specifying how the…
Involves mobilizing people to carry out plans and run routine…
Management accounting
Management accounting is concerned with providing information…
Activities carried out by managers
Managers everywhere carry out four major activities. Planning…
60 terms
Management Accounting
role of accounting
external decision makers (decisions, i…
Internal Decision Makers (decisions, i…
Process of Management
help decision makers measure the costs and benefits of decisi…
- investors and crediors. ... - decide on whether to invest in f…
- decide whether to run promotion, what to purchase, who to h…
- strategy formulation... - planning... - control... - decision making…
role of accounting
help decision makers measure the costs and benefits of decisi…
external decision makers (decisions, i…
- investors and crediors. ... - decide on whether to invest in f…
11 terms
Management Accounting
material price variance (MPV)
material usage variance (MQV)
labour rate variance (LRV)
labour efficiency variance (LEV)
actual price - standard price x actual quantity
actual quantity - standard quantity x standard price
actual rate - standard rate x actual hours
actual hours - standard hours x standard rate per hour
material price variance (MPV)
actual price - standard price x actual quantity
material usage variance (MQV)
actual quantity - standard quantity x standard price
Management accounting
Direct cost
Indirect cost
Cost centre
Cost unit
Specific costs that can be identified with a product/service
Labour/material/expense costs which cannot be identified with…
A location/person/item of equipment for which costs may be ac…
A unit of output
Direct cost
Specific costs that can be identified with a product/service
Indirect cost
Labour/material/expense costs which cannot be identified with…
The Manager and Management Accounting
Budget
CFO
Control
Controller
quantitative expression of a proposed plan by mgmt ... aid to co…
finance director... oversees financial operations
taking actions that implement the planning decisions, decidin…
CAO... primarily responsible for mgmt acct and financial account…
Budget
quantitative expression of a proposed plan by mgmt ... aid to co…
CFO
finance director... oversees financial operations
118 terms
Management accounting
Enterprise risk management
Finished goods
Just in time (JIT)
Lean thinking model
A process used by a company to help identify the risks that i…
Units of product that have been completed but have not yet be…
A production and inventory control system in which materials…
A five-step management approach that organizes resources arou…
Enterprise risk management
A process used by a company to help identify the risks that i…
Finished goods
Units of product that have been completed but have not yet be…
Management Accounting
Direct Cost
Indirect Cost
Materials
Labour
Cost that you can trace to a specific product
Cost that you can't easily trace to a specific product
Physical things you need to make products
Work needed to make products
Direct Cost
Cost that you can trace to a specific product
Indirect Cost
Cost that you can't easily trace to a specific product
22 terms
Management Accounting
ABC analysis
Bill of material
Bin card
EOQ
A technique of selective control of materials and classificat…
A comprehensive list of materials with exact description and…
A card fixed at the bin showing the position of the inventory…
It is defined as the size of the order at which the ordering…
ABC analysis
A technique of selective control of materials and classificat…
Bill of material
A comprehensive list of materials with exact description and…
70 terms
Management Accounting
Management Accounting
Financial Accounting vs Management Acc…
Variable Costs
Fixed Costs
The provision of financial and non-financial information to i…
Reports on past events, highly regulated, detailed annual fin…
Vary directly with the number of units produced... *cost of mate…
Costs that remain the same whatever the level of output ... *ren…
Management Accounting
The provision of financial and non-financial information to i…
Financial Accounting vs Management Acc…
Reports on past events, highly regulated, detailed annual fin…
83 terms
Management Accounting
Traditional Costing
ABC Costing
Predetermined Overhead Rate
What are issues with traditional costi…
1) Only allocate manufacturing overheads... 2) Allocate all manu…
1) Allocate manufacturing and non manufacturing... 2) Exclude so…
Budgeted overhead costs/Budgeted level of activity
- If you automated some of your processes, allocating labor h…
Traditional Costing
1) Only allocate manufacturing overheads... 2) Allocate all manu…
ABC Costing
1) Allocate manufacturing and non manufacturing... 2) Exclude so…
13 terms
Management accounting
Prime cost
Conversion cost
Period costs
Total cost
The direct materials and labour
Direct labour plus manufacturing overhead (costs included in…
Costs not part of manufacturing, usually selling/distribution…
Materials labour and overhead
Prime cost
The direct materials and labour
Conversion cost
Direct labour plus manufacturing overhead (costs included in…
12 terms
Management Accounting
Break even point
Contribution per unit
Margin of Safety (as a percentage)
Plant-wide overhead absorption rate
Total fixed costs/Contribution per unit
Sales - all variable costs
Expected sales - Breakeven sales/Expected sales x 100
Total overhead/Total labour hours
Break even point
Total fixed costs/Contribution per unit
Contribution per unit
Sales - all variable costs
49 terms
Management Accounting
Cost of Production Report
Cost per Equivalent Unit
Equivalent Units of Production
Process Costing System
A report prepared periodically by a processing department, su…
The rate used to allocate costs between completed and partial…
The portion of whole units that are complete with respect to…
A type of cost accounting system that provides product costs…
Cost of Production Report
A report prepared periodically by a processing department, su…
Cost per Equivalent Unit
The rate used to allocate costs between completed and partial…
11 terms
Management Accounting
What are expired costs called?
What are cost objects?
Examples of Cost Objects
Assigning costs tells the company ____…
Expenses
Items for which costs are measured and assigned
Products, Customers, Departments, and Regions
Why
What are expired costs called?
Expenses
What are cost objects?
Items for which costs are measured and assigned
Management Accounting
Role for Accounting
2 classes of decision makers
Types of external decisions
Information needs for external decisions
Help decision makers measure the costs and benefits of decisi…
outside the firm (External), inside the firm (internal)
whether to invest in firm, lend money, calculate taxes owed
differ across users, not cost effective to produce specific i…
Role for Accounting
Help decision makers measure the costs and benefits of decisi…
2 classes of decision makers
outside the firm (External), inside the firm (internal)
36 terms
Management: Accounting
3 Goals for Financial Management
Define Accounting
define Auditing
define Bookkeeping
1- Increase value ... 2- Communicate financial info ... 3- Aids in…
Process of collect, record, summarize and using financial data
Special area of accounting that deals with Verifying the reco…
Process that documents the flow of resources ($$) into the bu…
3 Goals for Financial Management
1- Increase value ... 2- Communicate financial info ... 3- Aids in…
Define Accounting
Process of collect, record, summarize and using financial data
19 terms
accounting for management
strategic planning
tactical planning
Operational planning
strategic information
-top management... -long term (longer than one year)... -whole orga…
-middle management... -medium-term (within one year)... -specific d…
-operational management... -short term (daily and monthly )... -spe…
is mainly used by senior management in an organization
strategic planning
-top management... -long term (longer than one year)... -whole orga…
tactical planning
-middle management... -medium-term (within one year)... -specific d…
11 terms
Accounting and Management
Accounting
Transaction
Bookeeping
Financial Statements
Is the process of recording, analyzing, and interpurting the…
Any business activity in accounting that involves money is re…
Is the recording of all the business transactions.
Present financial information in a way that helps business ow…
Accounting
Is the process of recording, analyzing, and interpurting the…
Transaction
Any business activity in accounting that involves money is re…
73 terms
Management: Accounting
What is solvency
What is efficiency
What is profitability
What is auditing
Can I continue to pay my bills and remain as I am
How do I manage my resources
The amount of money earned after all expenses are taken care of
A special area of accounting that deals with VERIFYING the re…
What is solvency
Can I continue to pay my bills and remain as I am
What is efficiency
How do I manage my resources
Management Accounting
Budgeted sales for the first quarter f…
The first step in the budgeting proces…
Projected sales for Tony Co. Ltd for n…
Becham Company has the following purch…
b. 202,000
c. Sales forecast
d. 24,000
c. $87,000
Budgeted sales for the first quarter f…
b. 202,000
The first step in the budgeting proces…
c. Sales forecast
54 terms
Management: Accounting
What is auditing
What is bookkeeping
What is an accounting period
Most common accounting period is how l…
A special area of accounting that deals with VERIFYING the re…
The process that documents what is coming in, going out, and…
Period of time over which transactions are recorded and at th…
1 year
What is auditing
A special area of accounting that deals with VERIFYING the re…
What is bookkeeping
The process that documents what is coming in, going out, and…
10 terms
Management Accounting
What do we call the amount of money (o…
In order to calculate a company's prof…
The difference between net profit and…
What is another word used to describe…
Revenue
Expenses
Taxes
Debts
What do we call the amount of money (o…
Revenue
In order to calculate a company's prof…
Expenses
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