Study sets matching "managerial accounting"

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Study sets matching "managerial accounting"

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…
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…
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
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…
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
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…
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
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.
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
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…
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…
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.
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…
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 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…
43 terms
Managerial Accounting Exam 1
What are the differences between Finan…
CEO:
COO:
CFO:
-hired on by the board of directors... -manages the company on a…
-hired on by the CEO... -manages day to day operations and repor…
-hired on by the CEO... -handles the finical accounting, manager…
What are the differences between Finan…
CEO:
-hired on by the board of directors... -manages the company on a…
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
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…
Managerial accounting
Planning
Controlling
Improving
Product cost
Used by management to develope the company's objectives
Monitoring the operations results of implemented plans and co…
Used by management to develop the company's objectives
Consist of manufacturing costs: direct materials, direct labo…
Planning
Used by management to develope the company's objectives
Controlling
Monitoring the operations results of implemented plans and co…
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…
Managerial Accounting
Cost behavior refers to the methods us…
Cost behavior refers to the manner in…
The variable cost per unit remains con…
Monthly rent on a factory building tha…
false
true
true
true
Cost behavior refers to the methods us…
false
Cost behavior refers to the manner in…
true
49 terms
Managerial Accounting
Relevant Costs
Irrelevant
Variable Costs
Fixed Costs
Differential costs, costs that differ between alternatives
Costs that do not differ b/w alternatives or sunk costs (cost…
Change in total cost in direct proportion to changes in volume
Stay constant in total cost over a wide range of activity lev…
Relevant Costs
Differential costs, costs that differ between alternatives
Irrelevant
Costs that do not differ b/w alternatives or sunk costs (cost…
Managerial Accounting Exam #3
you are trying to decide whether to tr…
jubilee frozen foods purchased new com…
E8-20A fill in the table
which of the following best describes…
a) the trade-in value of the old printer is: RELEVANT... b) pap…
a) book value of old machine: NOT RELEVANT... b) maintenance co…
requirement 2) ... revenue at market price ... LESS: desired profit…
costs that were incurred in the past and cannot be changed
you are trying to decide whether to tr…
a) the trade-in value of the old printer is: RELEVANT... b) pap…
jubilee frozen foods purchased new com…
a) book value of old machine: NOT RELEVANT... b) maintenance co…
28 terms
Managerial Accounting
Direct Materials
Direct Labor
Manufacturing Overhead
Indirect materials
raw materials that become an integral part of the finished pr…
Those labor costs that can be easily traced to individual uni…
Manufacturing costs that cannot be easily traced directly to…
Materials used to support the production process.... Examples:…
Direct Materials
raw materials that become an integral part of the finished pr…
Direct Labor
Those labor costs that can be easily traced to individual uni…
47 terms
Managerial Accounting
Cost (aka managerial) accounting
Fundamental assumption of cost account…
Check and balance
6 Principles of internal control
use of financial and non-financial information to make econom…
-costs are linear over the relevant range... -allows costs to be…
organizing the work so people naturally check on each other
-Assignment of responsibility... -segregation of duties... -documen…
Cost (aka managerial) accounting
use of financial and non-financial information to make econom…
Fundamental assumption of cost account…
-costs are linear over the relevant range... -allows costs to be…
16 terms
Managerial Accounting
Contribution Margin
CM Ratio
Unit Sales to Break Even
Dollar Sales to Break Even
Sales-Variable Expenses
CM / Sales
Fixed Expenses / Unit CM
Fixed Expenses/ CM Ratio
Contribution Margin
Sales-Variable Expenses
CM Ratio
CM / Sales
21 terms
Managerial Accounting
4 Primary Responsibilities of Management
Planning
Directing
Controlling
1. Planning... 2. Directing... 3. Controlling... 4. Decision Making
Setting goals and objectives
Day to day operations
Comparing actual results with plannned goals/objectives
4 Primary Responsibilities of Management
1. Planning... 2. Directing... 3. Controlling... 4. Decision Making
Planning
Setting goals and objectives
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
82 terms
Managerial Accounting
Account analysis
Activity base
Administrative costs
Committed fixed costs
A method for analyzing cost behavior in which an account is c…
A measure of whatever causes the incurrence of a variable cos…
All executive, organizational, and clerical costs associated…
Investments in facilities, equipment, and basic organizationa…
Account analysis
A method for analyzing cost behavior in which an account is c…
Activity base
A measure of whatever causes the incurrence of a variable cos…
44 terms
Managerial Accounting
Administrative costs
Common cost
Conversion costs
Cost behavior
All executive, organizational, and clerical costs associated…
A cost that is incurred to support a number of cost objects b…
Direct labor cost plus manufacturing overhead cost.
The way in which a cost reacts to changes in the level of act…
Administrative costs
All executive, organizational, and clerical costs associated…
Common cost
A cost that is incurred to support a number of cost objects b…
57 terms
Managerial Accounting
Variable Cost
Fixed Cost
Committed FC
Discretionary FC
Varies in proportion w/ production
Doesn't vary w/ production level
Long-term (can't be significantly changed in ST Depreciation…
Changed by decisions (R&D, Advertising, etc.)
Variable Cost
Varies in proportion w/ production
Fixed Cost
Doesn't vary w/ production level
37 terms
Ch 5 Managerial Accounting
Those firms producing similar products…
if a company's products/ services are…
Customized or built-to-order products…
Firms in process industries mass-produ…
process-costing accounting system
job-order accounting system.
Job-Order Environment
process-costing system
Those firms producing similar products…
process-costing accounting system
if a company's products/ services are…
job-order accounting system.
Managerial Accounting test #2
When overhead is allocated to every pr…
with increased competition, managers n…
using departmental overhead rates is g…
cost distortion occurs when some produ…
false
true
false
true
When overhead is allocated to every pr…
false
with increased competition, managers n…
true
40 terms
Managerial Accounting
Prestige Case - Summarize
When making decisions about cutting a…
Direct Costs
Indirect Costs
Daniel Rowe, president of Prestige Telephone Company (PTC), i…
distinguish between DIRECT AND INDIRECT COSTS of the decision…
are pertinent to the subsidiary only, and if the subsidiary w…
irrelevant to the subsidiary, meaning if we sold the subsidia…
Prestige Case - Summarize
Daniel Rowe, president of Prestige Telephone Company (PTC), i…
When making decisions about cutting a…
distinguish between DIRECT AND INDIRECT COSTS of the decision…
15 terms
Managerial Accounting
Flexible Budget
Planning Budget
Labor Efficiency Variance
Labor Rate Efficiency
Is an estimate of what revenues and costs should have been, g…
Is prepared before the period begins and is valid for only th…
Measures the difference between the actual hours taken to com…
Measures the difference between the actual hourly rate and th…
Flexible Budget
Is an estimate of what revenues and costs should have been, g…
Planning Budget
Is prepared before the period begins and is valid for only th…
Managerial Accounting
Standard Cost
Types of Standards
Information used to develop and update…
Computing Standard Costs
A budget for a single unit of product. Benchmark for evaluati…
Ideal (perfection) standards: do not allow for any inefficien…
Past usage of material and labor... Current cost of inputs... Futur…
Compute for:... DM... DL... MOH
Standard Cost
A budget for a single unit of product. Benchmark for evaluati…
Types of Standards
Ideal (perfection) standards: do not allow for any inefficien…
78 terms
Managerial Accounting
Cost Accounting... (AKA managerial accoun…
What is the fundamental assumption of…
Check and balance
6 principles of internal control
Use of financial and non-financial information to make econom…
costs are linear over the relevant range ... allows costs to be…
organizing the work so people naturally check on each other
assignment of responsibility... segregation of duties ... documenta…
Cost Accounting... (AKA managerial accoun…
Use of financial and non-financial information to make econom…
What is the fundamental assumption of…
costs are linear over the relevant range ... allows costs to be…
Managerial Accounting
Which of the following is not a cost c…
In using the high-low method, the fixe…
A company has a unit contribution marg…
Fixed costs are $3,000,000 and the uni…
Multiple
may be determined by subtracting the total variable cost from…
$300
20,000 units
Which of the following is not a cost c…
Multiple
In using the high-low method, the fixe…
may be determined by subtracting the total variable cost from…
32 terms
Managerial Accounting
Managerial Accounting
Comparing Managerial and Financial Acc…
Management Functions
Planning (as a management function)
a field of accounting that provides economic and financial in…
chapter 1, illustration 1-1
planning, directing, controlling
maximize short term profit and market share... commit to environ…
Managerial Accounting
a field of accounting that provides economic and financial in…
Comparing Managerial and Financial Acc…
chapter 1, illustration 1-1
80 terms
Managerial Accounting
What is a successful manager?
What is a management accountant?
Financial Accountants do....
Managerial Accountants do....
- building professional relationships with people ... -motivate…
- technology does the mechanics ... -less standardized reporting…
-provide info to outside users... -report past performance ... -emp…
-managers to make informal decisions ... -emphasis on future ... -r…
What is a successful manager?
- building professional relationships with people ... -motivate…
What is a management accountant?
- technology does the mechanics ... -less standardized reporting…
Managerial Accounting
Historical experience should be used w…
Standards set by engineering studies... a…
The standard cost per unit of output f…
A currently attainable standard is one…
a. they may perpetuate operating inefficiencies
e. all of these
c. standard input price X standard input allowed per unit of…
d. can be achieved under efficient operating conditions
Historical experience should be used w…
a. they may perpetuate operating inefficiencies
Standards set by engineering studies... a…
e. all of these
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
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