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Study sets matching "managerial accounting budgeting"

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Study sets matching "managerial accounting budgeting"

24 terms
Managerial Accounting- Budgeting
Budgeting
Planning
Directing
Controlling
outlines the financial plans of an organization
goals to motivate personnel to perform
and coordinate operations in order to achieve goals
comparing actual to budget giving feedback to adjust activities
Budgeting
outlines the financial plans of an organization
Planning
goals to motivate personnel to perform
19 terms
Managerial Accounting: Master Budgeting
Budget
Planning
Control
Advantages of Budgeting
Detailed plan for the future that is usually expressed in for…
Involves developing goals and preparing various budgets to ac…
Involves gathering feedback to ensure that the plan is being…
Communicate management's plans throughout the organization. F…
Budget
Detailed plan for the future that is usually expressed in for…
Planning
Involves developing goals and preparing various budgets to ac…
16 terms
Managerial Accounting = Budgeting
The budget is the key element of both…
Zero-Based Budgeting
Documents that are part of the Master…
The Sales Budget
Planning : involves developing objectives and preparing vario…
an alternate approach to budgeting.... Particularly used in gov…
Sales Budget... Production Budget... Direct Material Budget... Direct…
Budgeted Sales (Units)... Selling Price Per Unit... Total Sales
The budget is the key element of both…
Planning : involves developing objectives and preparing vario…
Zero-Based Budgeting
an alternate approach to budgeting.... Particularly used in gov…
10 terms
Budgeting Managerial Accounting
Sale Budget
Production Budget
Purchases Budget
Selling and general administrative exp…
forecasted unit sales ... _* price per unit_... Total gross sales b…
Budget unit sales ... _+budgeted ending inventory_... =total units…
Budgeted production... _* standard price per unit_... =production n…
~all non-production associated costs~... ie depreciation, sales…
Sale Budget
forecasted unit sales ... _* price per unit_... Total gross sales b…
Production Budget
Budget unit sales ... _+budgeted ending inventory_... =total units…
27 terms
Managerial Accounting - Budgeting Formulas
(23) direct materials cost variance
(23) direct materials efficiency varia…
(23) direct labor cost variance
(23) direct labor efficiency variance
(actual cost - standard cost) X actual quantity
(actual quantity - standard quantity) X standard cost
(actual cost - standard cost) X actual quantity
(actual quantity - standard quantity) X standard cost
(23) direct materials cost variance
(actual cost - standard cost) X actual quantity
(23) direct materials efficiency varia…
(actual quantity - standard quantity) X standard cost
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-Chapter 21 Budgeting
Objectives of budgeting
Planning
Directing
Controlling
Planning... Directing... Controlling
set up goals and get people involved in the process
directs and coordinates activities so that the plans are carr…
compare actual against planned goals
Objectives of budgeting
Planning... Directing... Controlling
Planning
set up goals and get people involved in the process
27 terms
Managerial Accounting Chapter 8: Budgets
Budget
Surplus
Deficit
1. Sales Budget Definition
How much money you receive, how money you spend, and how much…
When you receive more money than you spend
When you spend more money than you have
An educated guess of how much ice cream we are going to sel…
Budget
How much money you receive, how money you spend, and how much…
Surplus
When you receive more money than you spend
17 terms
Master Budgeting Chapter 8 Managerial Accounting
Planning
Control
Budgets _________management's plans th…
Budget forces _________ to think about…
developing future objectives and preparing various detailed b…
involves the steps taken by management to attain the objectiv…
communicate
managers
Planning
developing future objectives and preparing various detailed b…
Control
involves the steps taken by management to attain the objectiv…
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…
17 terms
Managerial Accounting Final (3.1 Budgeting)
Budget
Advantages of Budgets (6)
Two ways a manager can create Budget S…
Sales Budget
a quantitative plan for acquiring and using resources over a…
Communicate plans to employees... Discipline mangers to plan for…
understatement of capabilities ... overstatement of necessary re…
number of unites management believes it will sell
Budget
a quantitative plan for acquiring and using resources over a…
Advantages of Budgets (6)
Communicate plans to employees... Discipline mangers to plan for…
17 terms
Managerial Accounting: Chapt 22: Master Budgets
Budget
Budgetary Slack
Strategic Budget
Operational Budget
a financial plan that managers use to coordinate a business's…
occurs when managers intentionally understate/overstate expec…
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 managers use to coordinate a business's…
Budgetary Slack
occurs when managers intentionally understate/overstate expec…
Managerial Accounting Ch 6 Cash Budgets
Beginning Cash balance + Cash collecti…
Total cash available - Total cash paym…
Cash payments deducted from total cash…
Excess(deficiency) + borrowing-repayme…
Total Cash available
Excess or deficiency
Material, Labor, Manufacturing OH, Selling & Admin., Dividend…
Ending Cash Balance
Beginning Cash balance + Cash collecti…
Total Cash available
Total cash available - Total cash paym…
Excess or deficiency
15 terms
Managerial Accounting - Budget Variances & Capital Investments
Volume Variance
Flexible Budget Variance
Sales Price Variance
Fixed Cost SPENDING Variance
The difference between the static budget and the flexible bud…
The difference between the actual results and the flexible bu…
The difference between expected sales at an expected price an…
The difference between the actual fixed cost and the budgeted…
Volume Variance
The difference between the static budget and the flexible bud…
Flexible Budget Variance
The difference between the actual results and the flexible bu…
35 terms
Managerial Accounting Chpt. 9 (Master Budget)
Budgeting
Strategic Planning
Rollin Budget
Participative Budgeting
-A plan for a specific period of time ... -Helps management dete…
Involves setting long term goals that may extend 5 to 10 year…
a budget that is continuously updated so that the next 12 mon…
Involves many levels of management.
Budgeting
-A plan for a specific period of time ... -Helps management dete…
Strategic Planning
Involves setting long term goals that may extend 5 to 10 year…
5 terms
Managerial Accounting. Chapter 9: Flexible Budgets and Performance Analysis
Activity Variance
Flexible Budget
Planning budget
Revenue Variance
The difference between a revenue or cost item in the flexible…
A report showing estimates of what revenues and costs should…
A budget created at the beginning of the budgeting period tha…
The difference between the actual revenue for the period and…
Activity Variance
The difference between a revenue or cost item in the flexible…
Flexible Budget
A report showing estimates of what revenues and costs should…
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
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…
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…
20 terms
Unit 9: Intro To Managerial Accounting and Master Budget Process
Cost Object
Direct Cost
Indirect Cost
Product Costs (manufacturing costs)
an object that we want to assign a cost to. This is size depe…
This is used in one ( and only one) cost object. It is easily…
This shared by more than one cost object. It is given to cost…
DM + DL + OVHD
Cost Object
an object that we want to assign a cost to. This is size depe…
Direct Cost
This is used in one ( and only one) cost object. It is easily…
53 terms
Managerial Accounting Chapter 9 & 10: The Master Budget & Performance Evaluation
Strategic Planning
Rolling Budget
Participative budgeting
Slack
Setting long-term goals that may extend 5 to 10 years into th…
A budget that is continuously updated so that the next 12 mon…
Budgeting that involves the participation of many levels of m…
Intentionally overstating budgeted expenses or understating b…
Strategic Planning
Setting long-term goals that may extend 5 to 10 years into th…
Rolling Budget
A budget that is continuously updated so that the next 12 mon…
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
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…
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
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
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
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
36 terms
Managerial Chapter 7 - Budgeting
What is a budget?
Reasons for Budgeting
Planning
Coordiation
- a plan for using limited resources
1. Planning... 2. Coordination... 3. Control (Performance evaluatio…
-resource consumption (ex: cash)
-de-centralizatoin of decision rights... -ex: marketing talking…
What is a budget?
- a plan for using limited resources
Reasons for Budgeting
1. Planning... 2. Coordination... 3. Control (Performance evaluatio…
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
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
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…
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
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
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…
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
59 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
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…
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
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…
managerial accounting
capital budgeting
capital asset
hurdle rate
present value
the process of evaluating an investment in long term assets
a long term asset
the minimum rate of return that an organization requires
the value today of dollars to be received or paid in the future
capital budgeting
the process of evaluating an investment in long term assets
capital asset
a long term asset
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