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Study sets matching "managerial accounting cost volume"

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Study sets matching "managerial accounting cost volume"

17 terms
Managerial Accounting: Cost-Volume-Profit Relationships
Purpose of CVP Analysis
Contribution Margin
Break-Even Point
CVP Relationships in Equation Form
Estimate how profits are affected by: Selling prices, Sales V…
The amount remaining from sales revenue after variable expens…
The level of sales at which profit is zero
Profit = (Sales-Variable Expenses) - Fixed Expenses... Profit =…
Purpose of CVP Analysis
Estimate how profits are affected by: Selling prices, Sales V…
Contribution Margin
The amount remaining from sales revenue after variable expens…
20 terms
12 - Managerial accounting and cost-volume-profit relationships
+ Management planning and control cycle
+ Production standards
+ Cost classification
+ Cost behaviour
- Planning ... - Managing } Decision making... - Controlling
The expected or allowed times and costs to make a product or…
1. Cost behaviour... 2. Cost assignment... 3. Product costing... 4. Ti…
- Variable cost... - Fixed cost... - Mixed cost
+ Management planning and control cycle
- Planning ... - Managing } Decision making... - Controlling
+ Production standards
The expected or allowed times and costs to make a product or…
14 terms
Managerial Cost and Cost - Volume
Cost Behavior
Variable Cost
Fixed Cost
Relevant Range
Refers to the way a cost changes in relation to a change in b…
Costs that vary in direct proportion to an activity level, su…
Are cost that remain constant even if an activity level chang…
Cost behavior is valid only within a level of activity
Cost Behavior
Refers to the way a cost changes in relation to a change in b…
Variable Cost
Costs that vary in direct proportion to an activity level, su…
22 terms
Managerial Accounting Chapter 4 (Cost Volume Profit Analysis)
Cost Value Analysis
Break Even Point
Contribution Margin income statement
Contribution Margin
Estimates how changes in costs , sales volume , and price aff…
The Point where total revenue equals total cost. ... Total fixed…
The income statement format that is based on the separation o…
The difference between sales and variable expense. ... sales - t…
Cost Value Analysis
Estimates how changes in costs , sales volume , and price aff…
Break Even Point
The Point where total revenue equals total cost. ... Total fixed…
10 terms
Managerial Accounting Ch 5:Cost-Volume-Profit Relationships
Break-Even Point
Contribution margin ration (CM ratio)
Cost-Volume-Profit (CVP) graph
Degree of Operating Leverage
The level of sales at which profit is zero
A ratio computed by dividing contribution margin by dollar sa…
A graphical representation of the relationships between an or…
A measure, at a given level of sales, of how a percentage cha…
Break-Even Point
The level of sales at which profit is zero
Contribution margin ration (CM ratio)
A ratio computed by dividing contribution margin by dollar sa…
10 terms
Cost-Volume-Profit-Relationship Managerial Accounting Chapter 5
Contributional Margin
Cost-Volume-Profit Relationship in Equ…
Contribution Margin Ratio
Change in Contribution Margin
is a product's price minus all associated variable costs, res…
Profit= (Sales-Variable Expenses) - Fixed Expenses... Broken Dow…
CM Ratio = Contribution Margin/Sales
Change in Contribution Margin = CM Ratio * Change in Sales
Contributional Margin
is a product's price minus all associated variable costs, res…
Cost-Volume-Profit Relationship in Equ…
Profit= (Sales-Variable Expenses) - Fixed Expenses... Broken Dow…
10 terms
Managerial Accounting 2020 Chapter 7 Cost-Volume-Profit Analysis
Contribution margin less fixed costs y…
All else being equal, a company with a…
The contribution margin ratio explains…
LaComedia Dinner Theater sells tickets…
c) operating income
a) relatively high variable costs.
c) contributes towards fixed costs and generating a profit.
c) 35%
Contribution margin less fixed costs y…
c) operating income
All else being equal, a company with a…
a) relatively high variable costs.
16 terms
Managerial Accounting Chapter 6: Cost-Volume-Profit Analysis
Cost-Volume-Profit (CVP) Analysis
Assumptions Made Under CVP
Gross Profit
Contribution Margin Per Unit
A tool that focuses on the relationships among a company's pr…
1. Selling price is constant throughout the entire "relevant…
Sales - Cost of Goods Sold (COGS)
The sales price per unit of product, less all variable costs…
Cost-Volume-Profit (CVP) Analysis
A tool that focuses on the relationships among a company's pr…
Assumptions Made Under CVP
1. Selling price is constant throughout the entire "relevant…
12 terms
Managerial Accounting Chapter 7: Cost-Volume-Profit Analysis
Cost-Volume-Profit (CVP) Analysis
Sales Mix
Contribution Margin Income Statement
Contribution Margin
Expresses the relationships among costs, volume, and profit o…
The combination of products that make up total sales.
Income Statement that organizes costs by behavior (variable c…
Sales Revenue minus variable expenses.
Cost-Volume-Profit (CVP) Analysis
Expresses the relationships among costs, volume, and profit o…
Sales Mix
The combination of products that make up total sales.
15 terms
Managerial Accounting Chapter 4: Cost-Volume-Profit Analysis
Cost-Volume-Profit Analysis
Break-Even Point
Contribution Margin Income Statement
Contribution Margin
Estimates how changes in costs, sales volume, and price affec…
The point where total revenue equals total cost.
The income statement format that is based on the separation o…
The difference between sales and variable expense.
Cost-Volume-Profit Analysis
Estimates how changes in costs, sales volume, and price affec…
Break-Even Point
The point where total revenue equals total cost.
24 terms
Chapter 12- Managerial Accounting and Cost Volume- Profit Relationships
Managerial Accounting
Financial Accounting
Service perspective of Managerial Acco…
Service perspective of Financial Accou…
managerial accounting supports the internal planning (future-…
has more of a scorekeeping, historical orientation that provi…
Internal to managers
External to investors and creditors
Managerial Accounting
managerial accounting supports the internal planning (future-…
Financial Accounting
has more of a scorekeeping, historical orientation that provi…
10 terms
Managerial Cost Volume Profit
CM =
CMr =
Contribution Margin Definition
Break Even Analysis Definition
= SP - VC
= CM/SP
What you have left after you sell your product & contribute a…
The point to where you cover your losses with no profit
CM =
= SP - VC
CMr =
= CM/SP
51 terms
Managerial Accounting & Cost Concepts
3 categories of manufacturing costs
Direct Materials
Cost Object
2 categories of cost object
-direct materials... -direct labor... -manufacturing overhead
easily traceable and become an essential part of the finished…
anything for which cost data are desired
-direct costs... -indirect costs
3 categories of manufacturing costs
-direct materials... -direct labor... -manufacturing overhead
Direct Materials
easily traceable and become an essential part of the finished…
28 terms
Managerial Accounting: Cost Concepts
Cost Object
Direct Cost
Indirect Cost
Common Cost
Anything for which cost data are desired
A cost that can be easily and conveniently traced to a specif…
A cost that cannot be easily and conveniently traced to a spe…
A cost that is incurred to support a number of cost objects b…
Cost Object
Anything for which cost data are desired
Direct Cost
A cost that can be easily and conveniently traced to a specif…
36 terms
Managerial Accounting and Cost Concepts
Administrative Cost
Capitalized Cost
Contribution Margin
Conversion Costs
required to manage the org and provide staff support for org…
first recorded as an asset and then subsequently becomes an e…
difference between revenues and variable costs
DL+OH
Administrative Cost
required to manage the org and provide staff support for org…
Capitalized Cost
first recorded as an asset and then subsequently becomes an e…
25 terms
Managerial Accounting Cost Concepts
Direct costs
Indirect costs
Common costs
Manufacturing overhead
Costs that can be easily and conveniently traced to a unit of…
Costs that cannot be easily and conveniently traced to a unit…
Indirect costs incurred to support a number of cost objects.…
Manufacturing costs that cannot be easily traced directly to…
Direct costs
Costs that can be easily and conveniently traced to a unit of…
Indirect costs
Costs that cannot be easily and conveniently traced to a unit…
47 terms
Managerial Accounting and Cost Concepts
Cost Object
Direct Cost
Indirect Cost
Common Cost
Anything for which cost data are desired - including products…
A cost that can be easily and conveniently traced to a specif…
A cost that cannot be easily and conveniently traced to a spe…
A cost that is incurred to support a number of cost objects b…
Cost Object
Anything for which cost data are desired - including products…
Direct Cost
A cost that can be easily and conveniently traced to a specif…
19 terms
Managerial Accounting & Cost Concepts
Direct Labor
Direct Materials
Raw materials
Indirect Materials
Labor that can be easily traced and physically touch
Materials that can be traced and are extremely important in t…
Materials that go into the finished product
Materials that cants be traced and are insignificant to the f…
Direct Labor
Labor that can be easily traced and physically touch
Direct Materials
Materials that can be traced and are extremely important in t…
37 terms
Advanced Managerial/Cost Accounting
Absorption costing
Administrative costs
Average cost
Common costs
an inventory costing method that includes all manufacturing c…
All executive, organizational, and clerical costs associated…
Total cost divided by the units of activity or number of unit…
a cost that is common or shared by two or more users but cann…
Absorption costing
an inventory costing method that includes all manufacturing c…
Administrative costs
All executive, organizational, and clerical costs associated…
24 terms
Chapter 1 Managerial Cost Accounting
Activity-based costing (ABC)
Benchmarking
Budget
Cost Accounting
Costing method that first assigns costs to activities and the…
Continual process of measuring a company's own products, serv…
Financial plan of the revenues and resources needed to carry…
Field of accounting that measures, records, and reports infor…
Activity-based costing (ABC)
Costing method that first assigns costs to activities and the…
Benchmarking
Continual process of measuring a company's own products, serv…
38 terms
Role of Cost in Managerial Accounting
Product Costs
Product Cost Equation
Product Cost Flow
Period Costs
Costs that are attached to the product as it is produced and…
Direct Materials + Direct Labor + Manufacturing Overhead
Manufacturing Costs ... Balance Sheet: Work in Process Inventory…
Costs that are expensed in the period they are incurred.
Product Costs
Costs that are attached to the product as it is produced and…
Product Cost Equation
Direct Materials + Direct Labor + Manufacturing Overhead
11 terms
Managerial & Cost Accounting Terminology
Cost
Assets are....
Cost Object
Direct Costs
Cost is the economic sacrifice incurred or economic resources…
bundles of future economic value and will be used to GENERATE…
Accountants always measure the cost of "something". That some…
The terms direct and indirect have meaning only with referenc…
Cost
Cost is the economic sacrifice incurred or economic resources…
Assets are....
bundles of future economic value and will be used to GENERATE…
26 terms
Managerial and Cost Accounting
Raw Materials
Total Manufacturing Costs
COGM
Unadjusted COGS
Beg RM + Purhcases - End RM
DM + DL + MOH Applied to WIP
Total Manf Cost + Begin WIP - End WIP
COGM + Beg FGI - End FGI
Raw Materials
Beg RM + Purhcases - End RM
Total Manufacturing Costs
DM + DL + MOH Applied to WIP
43 terms
Managerial Accounting and Cost Concepts
Cost object
Direct cost
Indirect cost
Common cost (a type of indirect cost)
is anything for which cost data are desired - including produ…
a cost that can be easily and conveniently traced to a specif…
a cost that cannot be easily and conveniently traced to a spe…
a cost that is incurred to support a number of cost objects b…
Cost object
is anything for which cost data are desired - including produ…
Direct cost
a cost that can be easily and conveniently traced to a specif…
40 terms
Managerial Accounting and Cost Concepts
Account analysis
Activity base
Administrative Cost
Committed fixed cost
a method for analyzing cost behavior in which an account is c…
A measure of whatever causes the insurance of a variable cost.
All executive, organizational, and clerical cost associated w…
Investments in facilites, equipment, and basic organizational…
Account analysis
a method for analyzing cost behavior in which an account is c…
Activity base
A measure of whatever causes the insurance of a variable cost.
8 terms
Managerial Accounting: Process Costing
Process Costing
Processing Departments
Work in Process for Process Costing
Equivalent Units
Used most commonly in industries that convert raw materials i…
An organizational unit where work is performed on a product a…
WIP-Department A... Raw Materials... WIP-Department B... Raw Materia…
The number of partially completed units x percentage completion
Process Costing
Used most commonly in industries that convert raw materials i…
Processing Departments
An organizational unit where work is performed on a product a…
18 terms
Chapter 10 Managerial Cost Accounting
Activity-based cost management
Process reengineering
Lean manufacturing
Lean accounting
Approach that uses activity based costing data to evaluate th…
Changing operational processes to improve performance, often…
Approach to production that looks to significantly reduce pro…
Cost accounting system designed around the value chains of ma…
Activity-based cost management
Approach that uses activity based costing data to evaluate th…
Process reengineering
Changing operational processes to improve performance, often…
11 terms
Chapter 17 Managerial Cost Accounting
Purchase price variance
Industry volume variance
Market share variance
Sales mix revenue
Price variance based on the quantity of material purchased
Portion of the sales activity variance due to changes in indu…
Portion of the activity variance due to changes in the compan…
Variance arising from the relative proportion of different pr…
Purchase price variance
Price variance based on the quantity of material purchased
Industry volume variance
Portion of the sales activity variance due to changes in indu…
26 terms
Chapter 12 Managerial Cost Accounting
Decentralization
Principal-agent relationship
Centralized
Decentralized
Delegation of decision-making authority to a subordinate
Relationship between a superior, referred to as the principal…
Description of those organizations in which decisions are mad…
Description of those organizations in which decisions are spr…
Decentralization
Delegation of decision-making authority to a subordinate
Principal-agent relationship
Relationship between a superior, referred to as the principal…
Managerial Accounting: Process Costing
Process Costing
Process Costing tracks both
Direct Costs
Indirect Costs
Repetitive Procedure ... Homogeneous Products ... High Product Flex…
Direct And Indirect Costs
Goes To Cost Object
Does Not Go To The Cost Object
Process Costing
Repetitive Procedure ... Homogeneous Products ... High Product Flex…
Process Costing tracks both
Direct And Indirect Costs
20 terms
Chapter 16 Managerial Cost Accounting
Operating budgets
Financial budgets
Variance
Favorable variance
Budgeted income statement, production budget, budgeted cost o…
Budgets of financial resources, for example, the cash budget…
Different between planned result and actual outcome
Variance that, taken along, results in an addition to operati…
Operating budgets
Budgeted income statement, production budget, budgeted cost o…
Financial budgets
Budgets of financial resources, for example, the cash budget…
6 terms
Chapter 9 Managerial Cost Accounting
Death Spiral
Plantwide Allocation Method
Department Allocation Method
Activity Based Costing (ABC)
Process that begins by attempting to increase price to meet,…
Allocation method that uses one cost pool for the entire plan…
Allocation method that has a separate cost pool for each depa…
Costing method that first assigns costs to activities and the…
Death Spiral
Process that begins by attempting to increase price to meet,…
Plantwide Allocation Method
Allocation method that uses one cost pool for the entire plan…
11 terms
Chapter 7 Managerial Cost Accounting
Job
Job Shop
Job Cost Sheet
Subsidiary Ledger Account
Unit of a product that is easily distinguishable from other u…
Firm that produces jobs
Record of the cost of the job kept in the accounting system
Account that records financial transactions for a specific cu…
Job
Unit of a product that is easily distinguishable from other u…
Job Shop
Firm that produces jobs
9 terms
Chapter 6 Managerial Cost Accounting
Cost Management System
Predetermined Overhead Rate
Two Stage Cost Allocation
Job
System to provide information about the costs of process, pro…
Cost per unit of the allocation base used to charge overhead…
Process of first allocating costs to intermediate cost pools…
Unit of a product that is easily distinguishable from other u…
Cost Management System
System to provide information about the costs of process, pro…
Predetermined Overhead Rate
Cost per unit of the allocation base used to charge overhead…
18 terms
Managerial Accounting - Process Costing
Process costing
Similarities between process and job-o…
Difference between process and job-order
Processing department
1. Common in industries that produce homogeneous products ... 2.…
1. Both have same goal - assign costs to products and compute…
1. Process = continuous flow of indistinguishable products, j…
Organizational unit where work is performed, activity is perf…
Process costing
1. Common in industries that produce homogeneous products ... 2.…
Similarities between process and job-o…
1. Both have same goal - assign costs to products and compute…
37 terms
Advanced Managerial/Cost Accounting
Absorption costing
Administrative costs
Average cost
Common costs
an inventory costing method that includes all manufacturing c…
All executive, organizational, and clerical costs associated…
Total cost divided by the units of activity or number of unit…
a cost that is common or shared by two or more users but cann…
Absorption costing
an inventory costing method that includes all manufacturing c…
Administrative costs
All executive, organizational, and clerical costs associated…
40 terms
Managerial and Cost Accounting Formulas
1. Gross Margin
2. Contribution Margin
3. Net income
4. Cost of goods sold
Sales - Cost of Goods Sold
Sales - Variable Costs
Sales - Cost of goods sold - Variable expenses - Fixed expenses
beginning merchandise inventory + purchases - ending merchand…
1. Gross Margin
Sales - Cost of Goods Sold
2. Contribution Margin
Sales - Variable Costs
7 terms
Chapter 8 Managerial Cost Accounting
Equivalent Units
Weighted Average Process Costing
First In, First Out (FIFO) process cos…
Production Cost Reporting
Number of complete physical units to which units in inventori…
Inventory method that for product costing purposes combines c…
Inventory method whereby the first goods received are the fir…
Report that summarizes production and cost results for a peri…
Equivalent Units
Number of complete physical units to which units in inventori…
Weighted Average Process Costing
Inventory method that for product costing purposes combines c…
14 terms
Chapter 11 Managerial Cost Accounting
Service department
User department
Intermediate cost center
Final cost center
Department that provides services to other subunits in the or…
Department that uses the functions of service departments
Cost center whose costs are charged to other departments in t…
Cost center, such as a production or marketing department, wh…
Service department
Department that provides services to other subunits in the or…
User department
Department that uses the functions of service departments
27 terms
Managerial Accounting and Costs Concepts
Planning
Directing and Motivating
Controlling
Planning and Control Cycle
Establishing a basic strategy, selecting a course of action,…
Mobilizing people to carry out plans and run routine operatio…
Ensuring that the plan is actually carried out and is appropr…
The smooth flow of management activities from planning throug…
Planning
Establishing a basic strategy, selecting a course of action,…
Directing and Motivating
Mobilizing people to carry out plans and run routine operatio…
26 terms
Managerial Accounting - Cost Accounting Systems
Cost Accounting System
Four Steps to Determining Costs
Direct vs. Indirect Costs
Cost Pools... Only For Indirect Costs
An accounting system that focuses on measuring and reporting…
The basic steps in the design of a cost system are:... 1. Recog…
Direct costs are directly traced to the cost objects. Indirec…
A grouping of individual cost items, which are then allocated…
Cost Accounting System
An accounting system that focuses on measuring and reporting…
Four Steps to Determining Costs
The basic steps in the design of a cost system are:... 1. Recog…
38 terms
Cost Accounting: A Managerial Emphasis
Actual Cost
Average Cost
Budgeted Cost
Conversion Costs
cost incurred (a historical or past cost), as distinguished f…
another term for unit cost
predicted or forecasted cost (future cost) as distinguished f…
all manufacturing costs other than direct materials costs
Actual Cost
cost incurred (a historical or past cost), as distinguished f…
Average Cost
another term for unit cost
15 terms
Managerial Accounting Process Costing
When is job order costing used?
Process Costing
What are the similarities between Job-…
What are the differences between Job-O…
Job Order costing is used when many different jobs or product…
Process Costing is used most commonly in industries that conv…
1) Both systems have the same basic purposes - to assign mate…
1) Process costing is used when a company produces a continuo…
When is job order costing used?
Job Order costing is used when many different jobs or product…
Process Costing
Process Costing is used most commonly in industries that conv…
17 terms
Managerial Cost Accounting chapter 3
Job costing
Process costing
Operations costing
Fringe benefits
A costing system that accumulates tracks and assigns costs fo…
Costing system that accumulates and tracks costs for each pro…
A hybrid of job and process costing used by companies that ma…
Payroll costs in addition to the basic hourly wage
Job costing
A costing system that accumulates tracks and assigns costs fo…
Process costing
Costing system that accumulates and tracks costs for each pro…
22 terms
Accounting 230: Chapter 4 Cost-Volume-Profit Analysis: A Managerial Planning Tool
Cost-Volume-Profit (CVP) Analysis
Break-Even Point
Contribution Margin Income
Contribution Margin
Estimates how changes in costs (both variable & fixed), sales…
Point where total revenue equals total cost
Income statement format that is based on the separation of co…
Difference between sales and variable expense, amount of sale…
Cost-Volume-Profit (CVP) Analysis
Estimates how changes in costs (both variable & fixed), sales…
Break-Even Point
Point where total revenue equals total cost
35 terms
Managerial Accounting A focus on ethical decision making Ch 7 - Cost-Volume-Profit Analysis
Profitability Analysis
Selling prices and behavior of activit…
Cost volume profit analysis
Cost Volume Profit
Involves examining the relationships among revenues, costs, a…
What you need to understand to perform profitability analysis
technique to examine the relationships among total volume of…
provides an easily understood framework for discussing planni…
Profitability Analysis
Involves examining the relationships among revenues, costs, a…
Selling prices and behavior of activit…
What you need to understand to perform profitability analysis
22 terms
Managerial Accounting: Job-Order Costing
Job-Order Costing
Bill of Materials
Materials Requisition Form
Job Cost Sheet
Is used in situations where many different products, each wit…
A document that lists the type of quantity of each type of di…
A document that specifies the type and quantity of materials…
Records the materials, labor, and factory overhead costs char…
Job-Order Costing
Is used in situations where many different products, each wit…
Bill of Materials
A document that lists the type of quantity of each type of di…
25 terms
2: Managerial Accounting and Cost Concepts
Differential cost
Differential revenue
Marginal cost
Marginal revenue
Difference in cost between any two alternatives, includes inc…
Difference in revenues between any two alternatives
The cost involved in producing one more unit of product
The revenue that can be obtained from selling one more unit o…
Differential cost
Difference in cost between any two alternatives, includes inc…
Differential revenue
Difference in revenues between any two alternatives
18 terms
cost managerial accounting chapter 3
CVP cost-volume-profit analysis
profit equation
unit contribution margin
total contribution margin
study of the relations among revenue, cost, and volume an the…
operating profit = total revenue less total costs
difference between revenues per unit (price) and variable cos…
difference between revenues and total variable costs
CVP cost-volume-profit analysis
study of the relations among revenue, cost, and volume an the…
profit equation
operating profit = total revenue less total costs
37 terms
1-managerial accounting and cost concepts
why are costs classified differently?
cost object
direct cost
indirect cost
depends on immediate needs of management ... -different costs fo…
anything for which cost data can be desires- products, custom…
-easily and conveniently traced to a specific cost object ... -t…
-cannot be easily and conveniently traced to a specified cost…
why are costs classified differently?
depends on immediate needs of management ... -different costs fo…
cost object
anything for which cost data can be desires- products, custom…
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