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Study sets matching "managerial accounting"

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Study sets matching "managerial accounting"

16 terms
Managerial Accounting
Managerial accounting
Managers' activities and responsibilit…
Managerial accounting
Planning
...
Planning.... Directing.... Controlling.
Field of accounting that provides economic and financial info…
requires managers to look ahead and to establish objectives
Managerial accounting
...
Managers' activities and responsibilit…
Planning.... Directing.... Controlling.
10 terms
Managerial Accounting
process-costing accounting system
Job-Order Accounting
Unit Costs Measuring Equation
actual cost system
firms producing similar products or services can use (P&G, Kr…
Company's products/ Services are unique
Unit Costs=Process Costs / Output
only actual costs of: direct materials, labor, and overhead u…
process-costing accounting system
firms producing similar products or services can use (P&G, Kr…
Job-Order Accounting
Company's products/ Services are unique
Accounting Managerial
Variable cost per unit
Total Cost
relevant range
Gross Margin
change in cost/ change in units
Total variable + total fixed
variable will stay the same... fixed will flucuate
Sales- ( variable and fixed cogs)
Variable cost per unit
change in cost/ change in units
Total Cost
Total variable + total fixed
27 terms
Managerial Accounting
Managers 3 primary responsibilities
planning
directing
controlling
planning, directing, controlling
looking forward( setting goals)
here and now( overseeing day to day operations)
looking back(evaluating results of operations against plans a…
Managers 3 primary responsibilities
planning, directing, controlling
planning
looking forward( setting goals)
15 terms
managerial accounting
relevant cost
avoidable cost
unavoidable cost
costs that are never relevant
a cost that differs between alternatives.
a cost that can be eliminated/avoided.
a cost that cannot be eliminated/avoided.
sunk costs, depreciation, and allocated expenses.
relevant cost
a cost that differs between alternatives.
avoidable cost
a cost that can be eliminated/avoided.
14 terms
Managerial Accounting
What is the statement of cash flows?
The purpose of statement of cash flows:
sources of cash
use of cash
shows us why we have the cash that we have
it shows where cash is coming from and where cash is going
cash that is coming in
cash that is coming out
What is the statement of cash flows?
shows us why we have the cash that we have
The purpose of statement of cash flows:
it shows where cash is coming from and where cash is going
65 terms
Managerial Accounting
direct cost
indirect cost
materials
labor
cost that you can trace to a specific product
cost that you can't easily trace to a specific product
physical things you need to make products
work needed to make products
direct cost
cost that you can trace to a specific product
indirect cost
cost that you can't easily trace to a specific product
29 terms
Managerial Accounting
a manufacturing business
cost
direct materials cost
direct labor cost
converts materials into finished products through the use of…
a payment of cash or its equivalent or the commitment to pay…
the cost of any material that is an integral part of the fini…
the cost of employee wages that is an integral part of the fi…
a manufacturing business
converts materials into finished products through the use of…
cost
a payment of cash or its equivalent or the commitment to pay…
13 terms
managerial accounting
types of cost classifications
common costs
Type of manufacturing costs
Period Costs
financial reporting, predicting cost behavior, assigning cost…
indirect costs that are incurred
direct materials, direct labor, manufacturing overhead (indir…
selling/admin costs (advertising, depreciation, office rent)…
types of cost classifications
financial reporting, predicting cost behavior, assigning cost…
common costs
indirect costs that are incurred
29 terms
Managerial Accounting
Financial Accounting Vs. Managerial Ac…
Gross Margin
Operating Profit
Variable Cost Vs. Fixed Cost graph
Users of Information - External , Internal ... Time Period - Pas…
Revenue - Costs
Revenue - Costs - SG&A
Total Variable Cost vs. Production Level ... Total Fixed Cost vs…
Financial Accounting Vs. Managerial Ac…
Users of Information - External , Internal ... Time Period - Pas…
Gross Margin
Revenue - Costs
13 terms
Managerial Accounting
Cost
Cost Object
Direct cost
Indirect cost
Payment of cash or commitment to pay in the future to generat…
a segment of operations; product, customer, department, proje…
one that is traceable to a specific cost object
cost that benefits several cost objects but cannot be traced…
Cost
Payment of cash or commitment to pay in the future to generat…
Cost Object
a segment of operations; product, customer, department, proje…
36 terms
managerial accounting
Activity Based Budgetting
Budget
master budget
sales budget
a budget system based on expected activities
the process of planning future business actions and expressin…
is a formal comprehensive plan for the companys future it con…
shows the planed sales nits and the expected dollars from the…
Activity Based Budgetting
a budget system based on expected activities
Budget
the process of planning future business actions and expressin…
19 terms
Managerial Accounting
Strategic positioning
Controller
Cost object
Indirect cost
1. Cost leadership... 2. Superior products through differentiation
supervises all accounting functions and reports directly to G…
any item such as a product, project, etc. for which costs are…
can not be easily and accurately traced to a cost object
Strategic positioning
1. Cost leadership... 2. Superior products through differentiation
Controller
supervises all accounting functions and reports directly to G…
73 terms
Managerial Accounting
Management Accounting
Financial Accounting
Strategy
Plan-Do-Check-Act Cycle
The process of supplying managers and employees with financia…
The process of producing financial statements for external co…
Describes how a company will gain competitive advantage by be…
A method of budget setting that uses a joint decision making…
Management Accounting
The process of supplying managers and employees with financia…
Financial Accounting
The process of producing financial statements for external co…
25 terms
managerial accounting
period cost
product cost
fixed cost
variable cost
all costs incurred during the period to support the revenue g…
all costs to make the products sold (dm, dl, moh)
unaffected by changes in volume of production
increases as volume of production increases
period cost
all costs incurred during the period to support the revenue g…
product cost
all costs to make the products sold (dm, dl, moh)
19 terms
Managerial Accounting
Process Costing
Process Costing Difference
Examples of process costing
Equivalent Units
-Applies costs to similar products that are mass produced in…
A. Each mfg department has it's own WIP (Work In Process) acc…
-Soft Drinks (assign costs by making the liquid, bottling it,…
-because processing costing keeps up with total costs per pro…
Process Costing
-Applies costs to similar products that are mass produced in…
Process Costing Difference
A. Each mfg department has it's own WIP (Work In Process) acc…
20 terms
Managerial Accounting
Product costs
Period costs
Conversion costs
Prime costs
Direct Materials + Direct Labor + Manufacturing Overhead
Selling expenses + administrative expenses
Direct labor + manufacturing overhead
Direct materials + direct labor
Product costs
Direct Materials + Direct Labor + Manufacturing Overhead
Period costs
Selling expenses + administrative expenses
32 terms
Managerial Accounting
service companies
merchandising companies
manufacturing companies
raw materials inventory
sell intangible services (healthcare, insurance, banking, etc)
resell tangible products purchased from suppliers
labor, plant, and equipment to convert raw materials into new…
includes all of the raw materials (steel, glass, tires, uphol…
service companies
sell intangible services (healthcare, insurance, banking, etc)
merchandising companies
resell tangible products purchased from suppliers
37 terms
Managerial Accounting
Administrative Costs
Committed Fixed Costs
Common Cost
Contribution Approach
All executive, organizational and clericals costs associated…
Investments in facilities, equipment, and basic organizationa…
A cost that is incurred to support a number of cost objects t…
An income statement format that organizes costs.
Administrative Costs
All executive, organizational and clericals costs associated…
Committed Fixed Costs
Investments in facilities, equipment, and basic organizationa…
Managerial Accounting
Break Even Point- Units (one product)
Break Even Point- Units (multiple)
Break Even in Dollars (single)
Break Even in Dollars (multiple)
Fixed Cost/ CM per unit
Fixed Cost/Weighted Avg of CM
Fixed Cost/ CM Ratio
Fixed Cost/ Weighted Avg CM ratio
Break Even Point- Units (one product)
Fixed Cost/ CM per unit
Break Even Point- Units (multiple)
Fixed Cost/Weighted Avg of CM
63 terms
Managerial Accounting
Margin
Turnover
ROI
ROI
NOI/Sales
Sales/Av. Operating Assets
NOI/Average Operating Assets
Margin X Turnover
Margin
NOI/Sales
Turnover
Sales/Av. Operating Assets
33 terms
Managerial Accounting
Absorption Costing
Degree of operating leverage
Operating leverage
Sales mix
Costing approach where all manufacturing costs are charged to…
A measure to which a companies net income reacts to a change…
Extent to which a companies net income reacts to sales. (Fixe…
A percentage to which a company sells its multiple products.…
Absorption Costing
Costing approach where all manufacturing costs are charged to…
Degree of operating leverage
A measure to which a companies net income reacts to a change…
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
38 terms
Managerial Accounting
Direct Labor Budget
Production Budget
MFG Overhead Budget
Budget
A projection of the quantity and cost direct labor necessary…
A projection of the units that must be produced to meet antic…
An estimate of expected manufacturing overhead cost for the b…
A formal written statement of management's plans for a specif…
Direct Labor Budget
A projection of the quantity and cost direct labor necessary…
Production Budget
A projection of the units that must be produced to meet antic…
38 terms
Managerial Accounting
Sales revenue minus variable expenses is
Fixed Costs..
Mixed costs are also commonly known as
Manufacturing overhead costs include:
contribution margin
-generally include rent and supervisor salaries... -remain const…
semi-variable costs
indirect materials, factory supervisors' salaries, and factor…
Sales revenue minus variable expenses is
contribution margin
Fixed Costs..
-generally include rent and supervisor salaries... -remain const…
28 terms
Managerial Accounting
DOES NOT apply to managerial reports
Management functions include
Inventory Accounts for Manufacturing C…
Product Costs
Pertains to the business as a whole and is highly aggregated.
-Planning... -Directing... -Controlling
-Finished Goods Inventory... -Raw Materials Inventory ... -Work in…
-Direct Materials ... -Direct Labor... -Manufacturing OH... -Indirect…
DOES NOT apply to managerial reports
Pertains to the business as a whole and is highly aggregated.
Management functions include
-Planning... -Directing... -Controlling
Managerial Accounting
Actual cost system
Job-order cost system
normal cost system
process-costing system
an approach that assigns actual costs of direct materials, di…
a costing system in which costs are collected and assigned to…
an approach that assigns the actual costs of direct materials…
a costing system that accumulates production costs by process…
Actual cost system
an approach that assigns actual costs of direct materials, di…
Job-order cost system
a costing system in which costs are collected and assigned to…
16 terms
Managerial Accounting
Asset
Liability
Equity
Income Statement
Anything we can use for value. Ex: Cash, Accounts Receivable,…
"payable"
Out of our own pocket ex: Common stock
Revenue - expenses
Asset
Anything we can use for value. Ex: Cash, Accounts Receivable,…
Liability
"payable"
managerial accounting
Statement of cash flows: purpose, main…
Statement of cash flows: purpose, main…
Statement of cash flows: purpose, main…
Statement of cash flows: purpose, main…
By examining relationships between items in the statement of…
a company does not have adequate cash, it cannot pay employee…
. Net income provides information on the success or failure o…
By examining a company's investing and financing transactions…
Statement of cash flows: purpose, main…
By examining relationships between items in the statement of…
Statement of cash flows: purpose, main…
a company does not have adequate cash, it cannot pay employee…
21 terms
Academic Words for Principles of Managerial Accounting
Managerial Accounting
Cost
Decisions making
Direct costs
المحاسبة الادارية
تكلفة/ تكاليف
اتخاذ القرارات
التكاليف المباشرة
Managerial Accounting
المحاسبة الادارية
Cost
تكلفة/ تكاليف
22 terms
Managerial Accounting Chapter 1
Managerial accounting
Managerial accountants
What are the four activities of the ma…
Managerial accounting provides tools a…
is the process of identifying, measuring, analyzing, interpre…
are specialists in using the tools of managerial accounting t…
1. Decision making (make a decision, choosing among the avail…
...
Managerial accounting
is the process of identifying, measuring, analyzing, interpre…
Managerial accountants
are specialists in using the tools of managerial accounting t…
14 terms
Managerial Accounting
What is a process?
JIT Purchasing
Total Quality Management
Activity-based Management
-A set of procedures to accomplish an objective.... -Often suppo…
-Long-term contracts with suppliers. ... -Parts delivered in sma…
-Necessary for JIT inventory. ... -Reduces wait time, rework and…
Focuses on managing activities to reduce costs. ... -Reduces pro…
What is a process?
-A set of procedures to accomplish an objective.... -Often suppo…
JIT Purchasing
-Long-term contracts with suppliers. ... -Parts delivered in sma…
37 terms
Managerial Accounting
Y=a+bx
Y
a
b
High-Low
Total Mixed Cost
Total Fixed Cost
Variable cost/unit activity
Y=a+bx
High-Low
Y
Total Mixed Cost
12 terms
Managerial Accounting
y=vx+f
Increased through debits
Increased through credits
Activity Cost allocation rate
y=total cost.... v=variable cost per unit... x=number of units... f=fi…
Assets (inventory)... Expenses (rent)
Liabilities (wages Payable)... Revenue (sales revenue)... Owners Eq…
total estimated activity pool/total estimated activity base
y=vx+f
y=total cost.... v=variable cost per unit... x=number of units... f=fi…
Increased through debits
Assets (inventory)... Expenses (rent)
47 terms
Managerial Accounting
what are prime costs
what are conversion costs
what is an example of direct materials…
what costs are included in finished go…
direct materials and direct labor
direct labor and factory overhead
cost of interior upholstery
direct labor... factory overhead... direct materials
what are prime costs
direct materials and direct labor
what are conversion costs
direct labor and factory overhead
59 terms
Managerial accounting
A cost system determines the cost of a…
If a business has a low contribution m…
Contribution margin ratio =
A budget can be used to...
Accumulating and then assigning costs
Small changed in variable cost per unit have a big impact on…
...
Motivatex employees, motivate managers, promote coordination…
A cost system determines the cost of a…
Accumulating and then assigning costs
If a business has a low contribution m…
Small changed in variable cost per unit have a big impact on…
23 terms
Managerial Accounting
the price-earning ratio is computed by…
If the assets in which funds are inves…
the acid test is a test of quality of…
When computing the Acid-test ratio, pr…
True
False
False
True
the price-earning ratio is computed by…
True
If the assets in which funds are inves…
False
22 terms
Managerial accounting
Financial vs. managerial accounting
work of management
direct cost
indirect cost
financial: ... -external people who make financial decisions... - h…
-planning... -controlling... - decision making
costs that can be traced to a unit of product... - direct materi…
costs cannot be easily traced to a unit or object... -Manufactur…
Financial vs. managerial accounting
financial: ... -external people who make financial decisions... - h…
work of management
-planning... -controlling... - decision making
32 terms
Managerial Accounting
Expense
Product Cost or Inventoriable Cost
Cost
Period Cost
Cost incurred when an asset is used up or sold for the purpos…
A cost assigned to goods that were either purchased or manufa…
A sacrifice made to achieve a particular purpose
All costs that are not product costs. Identified with the per…
Expense
Cost incurred when an asset is used up or sold for the purpos…
Product Cost or Inventoriable Cost
A cost assigned to goods that were either purchased or manufa…
59 terms
Managerial Accounting
The provision of accounting informatio…
What are some characteristic of manage…
Product (or manufacturing) costs consi…
What is controlling?
managerial accounting
a. There is an internal focus.... b. Subjective information may…
prime costs and manufacturing overhead.
The managerial activity of monitoring a plan's implementation…
The provision of accounting informatio…
managerial accounting
What are some characteristic of manage…
a. There is an internal focus.... b. Subjective information may…
199 terms
Managerial Accounting
Accounting
Financial Accounting
Managerial Accounting
SEC
The process of keeping the financial score for the entity.
External users of financial statements; follow GAAP
Internal users; no GAAP
Securities and Exchange Commission
Accounting
The process of keeping the financial score for the entity.
Financial Accounting
External users of financial statements; follow GAAP
87 terms
Managerial Accounting
Accounting
Financial Accounting
Managerial Accounting
Entity
the process of keeping the financial score for the entity
external users of financial statements; follow GAAP
internal users; no GAAP, use of financial and non-financial d…
organizational element about which accounting information is…
Accounting
the process of keeping the financial score for the entity
Financial Accounting
external users of financial statements; follow GAAP
11 terms
Managerial Accounting
equivalent units
percent of change
operating leverage
contribution margin ratio
(units transferred out + units in closing work in process) *…
(change in amount / original number) * 100
contribution margin / net income
contribution margin / sales
equivalent units
(units transferred out + units in closing work in process) *…
percent of change
(change in amount / original number) * 100
43 terms
Managerial Accounting
Cost ("Managerial") Accounting
fundamental assumption of cost account…
cost object
check and balance
use of financial and non-financial information to make econom…
-costs are linear over the relevant range... -allows costs to b…
anything about which costs are collected
organizing the work so people naturally check on each other
Cost ("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 b…
45 terms
Managerial accounting
Planning
Budget
Budget
Budget
Choosing goals and deciding how to acheive them
A financial plan that managers use to coordinate a buisness's…
Shows the expected financial impact of decisions such as incr…
Helps identify the resources needed to achieve the goals
Planning
Choosing goals and deciding how to acheive them
Budget
A financial plan that managers use to coordinate a buisness's…
45 terms
Managerial Accounting
Batch-level cost
Controllable cost/benefit
Cost hierarchy
Direct cost/benefit
a cost that varies in proportion to the number of batches of…
a cost or benefit that a decision maker chooses to incur rela…
the classification of costs into unit, batch, product, and fa…
a cost or benefit that is directly related to a decision option
Batch-level cost
a cost that varies in proportion to the number of batches of…
Controllable cost/benefit
a cost or benefit that a decision maker chooses to incur rela…
16 terms
MANAGERIAL ACCOUNTING
Decision Making Process
3 types of Companies
3 Inventory Accounts
cost object
Planning-generate more sales via opening stores... Directing-usi…
services-... merchandisers-... manufacturers-
Raw Materials-... Work in Process-... Finished Goods-
anything for which managers want a separate measurement of co…
Decision Making Process
Planning-generate more sales via opening stores... Directing-usi…
3 types of Companies
services-... merchandisers-... manufacturers-
13 terms
Managerial Accounting
Accounting
Capital Gain and Loss
Tax Expense
Tax Pass Through
the process of keeping the financial score for the entity
Gain: sale of non-operating asset at greater than book value…
- expense to company... - appears on income statement... examples:…
taxes collected on behalf of a governmental entity and passed…
Accounting
the process of keeping the financial score for the entity
Capital Gain and Loss
Gain: sale of non-operating asset at greater than book value…
68 terms
Managerial Accounting
Professors wife cannot drive
Official Class Dink
Glasses on
Glasses off
arkansas missouri mississipi florida alabama
coca-cola
left
middle and right
Professors wife cannot drive
arkansas missouri mississipi florida alabama
Official Class Dink
coca-cola
120 terms
Managerial Accounting
What is financial accounting concerned…
What is managerial accounting concerne…
What do both FA and MA do
Three sections of Managerial accounting
concerned with reporting financial information to external pa…
providing information to managers for use within the organiza…
recording, estimating, organizing, summarizing
planning, controlling, decision making
What is financial accounting concerned…
concerned with reporting financial information to external pa…
What is managerial accounting concerne…
providing information to managers for use within the organiza…
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