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
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…
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…
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
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…
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
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…
7 terms
Managerial Accounting Master Budget Format
Sales Budget
Inventory Purchases Budget
S&A Expense Budget
Cash Budget
Projected Sales... Cash Sales... Sales on Account... Total Budgeted…
Projected Purchases... Budgeted COGS... + Desired End Inventory…
Projected S&A Expenses... Salary Expense... Sales Commission (% o…
Cash Receipts... Beginning Cash Balance... Add Cash Receipts... Tota…
Sales Budget
Projected Sales... Cash Sales... Sales on Account... Total Budgeted…
Inventory Purchases Budget
Projected Purchases... Budgeted COGS... + Desired End Inventory…
Managerial Accounting - Flexible budgets and ABB
Budget
Budget Functions
ABB
ABC vs ABB
A budget is a detailed plan, expressed in quantative terms, t…
Planning... Facilitating communcation and coordination... Allocatin…
the opposite direction of ABC
ABC: Resource > Activities > Cost objectives... ABB: Forecast o…
Budget
A budget is a detailed plan, expressed in quantative terms, t…
Budget Functions
Planning... Facilitating communcation and coordination... Allocatin…
6 terms
Managerial Accounting FINAL Chapter 9 - Budgeting
budget
bad debt
components of a Master Budget
Operational Budgets
a detailed plan, expressed in quantitative terms, that specif…
an expense item on the income statement
Sales Budget, Operational Budgets, and Budgeted Financial Sta…
manufacturing firms, merchandising firms, and service industr…
budget
a detailed plan, expressed in quantitative terms, that specif…
bad debt
an expense item on the income statement
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…
63 terms
Managerial Accounting Chapter 9: The Master Budget
How and why are budgets used?
The steps in the on going budgeting cy…
Strategic Planning
Rolling Budget
Budgets help to plan for the future and control the revenues…
develop a strategy, plan, act, and control
setting long term goals that may extend 5 to 10 years into th…
budget that is continuously updated so that the next 12 month…
How and why are budgets used?
Budgets help to plan for the future and control the revenues…
The steps in the on going budgeting cy…
develop a strategy, plan, act, and control
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
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…
17 terms
Managerial Accounting 7 - Flexible budgets and activity-based budgeting
A financial planning and analysis (FP&…
A budget is a....
Purposes of budgets
Master budgets
ASSESS the company's FUTURE + know if they're REACHING their…
detailed PLAN, ... expressed in QUANTITATIVE terms, ... specifies h…
1. Planning... 2. Facilitating communication & coordination... 3.…
comprehensive SET of budgets --> ... covers ALL PHASES of org's…
A financial planning and analysis (FP&…
ASSESS the company's FUTURE + know if they're REACHING their…
A budget is a....
detailed PLAN, ... expressed in QUANTITATIVE terms, ... specifies h…
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…
98 terms
Managerial Accounting
Marginal Cost
Unit Cost
Continuous Improvement
Kaizan
Extra cost of producing one additional unit of production.
The average production cost per unit
Ongoing small, incremental improvements in all parts of an or…
short term approach to enhancing efficiency that focuses on i…
Marginal Cost
Extra cost of producing one additional unit of production.
Unit Cost
The average production cost per unit
Managerial Accounting. 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…
Managerial Accounting
Direct Materials
Direct Labor
Manufacturing Overhead
Non manufacturing Costs
Raw materials that become an integral part of the product and…
Those labor costs that can be easily traced to individual uni…
Manufacturing costs that cannot be easily traced directly to…
Selling Costs, administrative costs
Direct Materials
Raw materials that become an integral part of the product and…
Direct Labor
Those labor costs that can be easily traced to individual uni…
98 terms
Managerial Accounting
Marginal Cost
Unit Cost
Continuous Improvement
Kaizan
Extra cost of producing one additional unit of production.
The average production cost per unit
Ongoing small, incremental improvements in all parts of an or…
short term approach to enhancing efficiency that focuses on i…
Marginal Cost
Extra cost of producing one additional unit of production.
Unit Cost
The average production cost per unit
90 terms
Managerial Accounting
Budget
Business process
Controlling
Corporate social responsibility
A detailed plan for the future that is usually expressed in f…
A series of steps that are followed in order to carry out som…
The process of gathering feedback to ensure that a plan is be…
A concept whereby organizations consider the needs of all sta…
Budget
A detailed plan for the future that is usually expressed in f…
Business process
A series of steps that are followed in order to carry out som…
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…
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…
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
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
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
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…
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
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…
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…
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
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…
43 terms
Managerial accounting Final
Managerial accounting
Authority to advise but not command is…
Management by exception means manageme…
A.... involves only the analysis of actual financial data from a…
staff authority.
significant deviations from expected results.
Managerial accounting
A.... involves only the analysis of actual financial data from a…
Authority to advise but not command is…
staff authority.
14 terms
Managerial Accounting Chapter 4
Cost of Production Report
Equivalent Units
First-In, First-Out (FIFO) Cost Method
Hybrid Cost System
A report which presents information about units, costs... charge…
The theoretical number of units that could have been produced…
A process costing method that presumes the beginning inventor…
One type of cost system is used for one phase of the producti…
Cost of Production Report
A report which presents information about units, costs... charge…
Equivalent Units
The theoretical number of units that could have been produced…
64 terms
Managerial Accounting
1. Which of the following is not a maj…
2. A major disadvantage of a corporati…
3. Which of the following statements i…
4. The ability of a corporation to obt…
c. Government regulations.
b. additional taxes.
c. Limited liability of stockholders
a. enhanced because of limited liability and ease of share tr…
1. Which of the following is not a maj…
c. Government regulations.
2. A major disadvantage of a corporati…
b. additional taxes.
22 terms
Managerial Accounting Chapter 12
Activity Analysis
Appraisal Costs
Balanced Scorecard
Benchmarking
Monitoring activities to assess which activities add value to…
Costs of quality that are incurred to monitor and inspect pro…
A tool that integrates financial and nonfinancial performance…
Comparing operations, costs, and productivity with world-clas…
Activity Analysis
Monitoring activities to assess which activities add value to…
Appraisal Costs
Costs of quality that are incurred to monitor and inspect pro…
26 terms
Managerial Accounting Chapter 2
Account Analysis
Break-Even Analysis
Break-Even Chart
Break-Even Point
A method of estimating fixed and variable costs by classifyin…
An approach that examines the interaction of factors that... inf…
A graph showing cost and revenue functions together with a br…
The point where total revenues equal total costs.
Account Analysis
A method of estimating fixed and variable costs by classifyin…
Break-Even Analysis
An approach that examines the interaction of factors that... inf…
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…
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…
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…
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
13 terms
**** managerial accounting
Cost Driver
Relevent range
variable costs
Do fixed costs remain the same regardl…
What triggers a change in an activity
The range where we expect our assumptions of cost behavior to…
they change in total in direct proportion to changes in activ…
YES
Cost Driver
What triggers a change in an activity
Relevent range
The range where we expect our assumptions of cost behavior to…
107 terms
Managerial Accounting
Budget
Chief financial officer (CFO)
Control
Controller
Quantitative expression of a proposed plan of action by manag…
Executive responsible for overseeing the financial operations…
Taking actions that implement the planning decisions, decidin…
The financial executive primarily responsible for management…
Budget
Quantitative expression of a proposed plan of action by manag…
Chief financial officer (CFO)
Executive responsible for overseeing the financial operations…
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