Study sets matching "managerial accounting"

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Study sets matching "managerial accounting"

11 terms
managerial accounting
Organizations achieve control by:
Behavioral implications1
Behavioral implications2
Four standars of ethical conduct for m…
Evaluating managers - rewarded or punished... Evaluating operati…
ㅇ people react when they're being measured... ㅇ focus on measure…
ㅇ management accountants must understand reactions of individ…
ㅇ Competence... ㅇ Confidentiality ... ㅇ Integrity... ㅇ Objectivity
Organizations achieve control by:
Evaluating managers - rewarded or punished... Evaluating operati…
Behavioral implications1
ㅇ people react when they're being measured... ㅇ focus on measure…
49 terms
(Managerial) Accounting
Data
Information
Knowledge
Data becomes __________________, which…
Reports such as financial statements, customer lists, and inv…
Data that have been organized, processed, and summarized.
Information that is shared and exploited so that it adds valu…
Data becomes information, which becomes knowledge.
Data
Reports such as financial statements, customer lists, and inv…
Information
Data that have been organized, processed, and summarized.
Managerial Accounting
Ethical Standards
Cost
Sunk cost
Opportunity Cost
Competence- certification ... Confidentiality ... Integrity... Objecti…
Sacrifice made to obtain something
Costs from the past, unrecoverable
Benefict foregone by choosing something else
Ethical Standards
Competence- certification ... Confidentiality ... Integrity... Objecti…
Cost
Sacrifice made to obtain something
Managerial Accounting
Cost Center
Revenue Center
Profit Center
Investment Center
segment has control over the incurrence of costs... ex: the pai…
segment is responsible for the revenue of a unit... ex: the res…
segment has control over both costs and revenues... ex: company…
segment has control over profits and investment of capital... e…
Cost Center
segment has control over the incurrence of costs... ex: the pai…
Revenue Center
segment is responsible for the revenue of a unit... ex: the res…
Managerial Accounting
Current Ratio
Quick Ratio
Inventory Turnover
Average Collection Period
Current asset... /Current laibility
Cash&Marketable Sec. + Acct. receivables... /current liabilities
Sales... /Avg. inventory
1: Sales... /360days... 2: Ending Accounts Receivables ... /Average d…
Current Ratio
Current asset... /Current laibility
Quick Ratio
Cash&Marketable Sec. + Acct. receivables... /current liabilities
85 terms
Managerial Accounting
Accounting
Financial Accounting
Managerial Accounting
SIT
the process of keeping financial score for the entity
External users of financial statements... Follow GAAP
Internal Users... NO GAAP
seasonality, industry, trend
Accounting
the process of keeping financial score for the entity
Financial Accounting
External users of financial statements... Follow GAAP
23 terms
Managerial Accounting
AIS- Accounting Information systems
Example of AIS
Traditional Financial Accounting infor…
Nonfinancial Information ... other quant…
A transaction-processing system that capture financial data r…
document a transaction to purchase materials by recording a j…
Asset,liabilities,revenues, gross margin, operating expenses.
percentage of defects ... number of customer complaints ... warrant…
AIS- Accounting Information systems
A transaction-processing system that capture financial data r…
Example of AIS
document a transaction to purchase materials by recording a j…
20 terms
managerial accounting
operating
operating
operating
operating
cash received from sale of service of merchandise`
cash received from interest income
cash received from dividend income
cash paid to purchase inventory
operating
cash received from sale of service of merchandise`
operating
cash received from interest income
9 terms
Managerial Accounting
Unit Sales to break even
Dollar sales to break even
Unit sales to attain the target profit
Dollar sales to attain a target profit
Fixed Expenses/ Unit CM
Fixed Expenses/ CM ratio
Target profit+Fixed Expenses/ Unit CM
Target profit+Fixed expenses/ CM Ratio
Unit Sales to break even
Fixed Expenses/ Unit CM
Dollar sales to break even
Fixed Expenses/ CM ratio
10 terms
Managerial Accounting
Material Price Variance
Material Quantity Variance
Labor Rate Variance
Labor Efficient Variance
AQ (AP - SP)
SP (AQ - SQ)
AH (AR - SR)
SR (AH - SH)
Material Price Variance
AQ (AP - SP)
Material Quantity Variance
SP (AQ - SQ)
9 terms
Managerial Accounting
Product Cost
Period Cost
Conversion Cost
Prime Cost
direct materials + direct labor + manufacturing overhead
selling expenses + administrative expenses
direct labor + manufacturing overhead
direct materials + direct labor
Product Cost
direct materials + direct labor + manufacturing overhead
Period Cost
selling expenses + administrative expenses
18 terms
Managerial Accounting
Profit Margin
Asset Turnover
Return on Asset
Return on Stockholder's Equity
NI / NS
NS / Average Total Assets
NI / Average Total Assets
NI (- preferred dividends) / Avg. Stockholder Equity
Profit Margin
NI / NS
Asset Turnover
NS / Average Total Assets
18 terms
Managerial Accounting
Cost Behavior
Cost Structure
Variable Cost
Activity Base
refers to how a cost reacts to changes in the level of activi…
Th relative proportion to each cost in an organization
varies, in total, in direct proportion to changes in the leve…
Measure of whatever causes the incurrence of a variable cost.…
Cost Behavior
refers to how a cost reacts to changes in the level of activi…
Cost Structure
Th relative proportion to each cost in an organization
76 terms
Managerial Accounting
managerial
Assets
are all assets shown on the balance sh…
Liability
internal users; no GAAP
something of future economic value
no, can't be objectively quantified
something owed
managerial
internal users; no GAAP
Assets
something of future economic value
69 terms
Managerial Accounting
Managerial Accounting
Financial Accounting
Cost object
Direct costs
Focuses on activities inside the organization ( Corporate Fin…
Focuses on reporting to people outside the organization
Any item for which the manager wishes to measure cost
Cost that relate directly to the object
Managerial Accounting
Focuses on activities inside the organization ( Corporate Fin…
Financial Accounting
Focuses on reporting to people outside the organization
21 terms
managerial accounting
Total Product Cost
Prime cost
Price
Indirect Cost
Includes direct materials, direct labor and overhead (DM+DL+MO)
Sum of direct materials cost and direct labor cost
Revenue per unit
cost that cannot be easily and accurately traced to a cost ob…
Total Product Cost
Includes direct materials, direct labor and overhead (DM+DL+MO)
Prime cost
Sum of direct materials cost and direct labor cost
Managerial Accounting
Job Cost
FIFO Equivalent Units
FIFO Average Costs
Weighted Average Costs
Direct Materials + Direct Labor + Manufacturing Overhead
Adjusted Beg. WIP +... Started and Completed +... Adjusted End. WIP
Period Costs
Beg. WIP costs+ Period costs
Job Cost
Direct Materials + Direct Labor + Manufacturing Overhead
FIFO Equivalent Units
Adjusted Beg. WIP +... Started and Completed +... Adjusted End. WIP
Managerial accounting
Financial accounting
Managerial accounting
Historical data
estimated data
1.external use and company management ... 2. prepared according…
1. for internal use... 2. prepared as needed... 3. focused can be a…
provides an objective measure of the PAST
provides an objective measure of the FUTURE
Financial accounting
1.external use and company management ... 2. prepared according…
Managerial accounting
1. for internal use... 2. prepared as needed... 3. focused can be a…
33 terms
managerial accounting
cost objects
direct vs indirect cost
manufacturing costs
non-manufacturing costs
whatever you want to determine the cost of (products, service…
direct: traceable to cost object. indirect: not traceable to…
direct materials, direct labor, manufacturing overhead, produ…
marketing, administrative, period costs
cost objects
whatever you want to determine the cost of (products, service…
direct vs indirect cost
direct: traceable to cost object. indirect: not traceable to…
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
21 terms
Managerial Accounting
budget
budgetary slack
capital expenditures budget
cash budget
Financial plan that managers users coordinate a business's ac…
Occurrence managers intentionally understate expected revenue…
The budgetary presents the company's plan for purchasing prop…
Budget that details hoe the business expects to go from begin…
budget
Financial plan that managers users coordinate a business's ac…
budgetary slack
Occurrence managers intentionally understate expected revenue…
31 terms
Managerial Accounting
Budget Control
Static budget
Flexible budget
Responsibility accounting
use of budgets to control operations
one level of activity
various levels of activity
involves accumulating and reporting revenues and costs on the…
Budget Control
use of budgets to control operations
Static budget
one level of activity
Managerial Accounting Chapter 3
Process Costing
Process Costing
Process Costing
Examples of Process Costing
focuses on accumulating costs for each production process.
Generally, we see ________ used when a firm produces homogene…
Mass production ... Similar Items ... Totals costs avg. by all un…
Paint manufacturers... Oil refineries... Cereal manufacturers
Process Costing
focuses on accumulating costs for each production process.
Process Costing
Generally, we see ________ used when a firm produces homogene…
53 terms
Managerial Accounting
Balance Sheet
Common Stock
Conversion Cost
Cost allocation
statement of financial precision: short term... assets = liabili…
a security that represents ownership in a corporation
direct labor + manufacturing overhead... cannot easily be traced…
assigning of a common cost to several cost objects... ex) alloca…
Balance Sheet
statement of financial precision: short term... assets = liabili…
Common Stock
a security that represents ownership in a corporation
Managerial Accounting
Total manufacture cost
Cost of Goods Sold
OH - Applied
ABC : Unit Level
DM + DL + OH + Work in process beg - Work in process end
Finished goods beg - finished goods end
Estimated OH Costs/Estimated Cost Driver
occur every time a service is performed or a product is made.…
Total manufacture cost
DM + DL + OH + Work in process beg - Work in process end
Cost of Goods Sold
Finished goods beg - finished goods end
Managerial Accounting
cost object
direct cost
indirect cost
direct materials
anything for which cost data are desired... Ex: products, custo…
a cost that can be easily and conveniently traced to a specif…
a cost that cannot be easily traced to a specific cost object…
materials that are an integral part of the finished product a…
cost object
anything for which cost data are desired... Ex: products, custo…
direct cost
a cost that can be easily and conveniently traced to a specif…
25 terms
Managerial Accounting
Indirect Labor
Indirect Materials
Job Cost Sheet
Materials Requisition Slip
the work of employees that has no physical association to the…
raw materials that do not physically become part of the finis…
A form used to record the costs chargeable to a specific job…
a document authorizing the issuance of raw materials from the…
Indirect Labor
the work of employees that has no physical association to the…
Indirect Materials
raw materials that do not physically become part of the finis…
19 terms
Managerial Accounting
Direct Materials
Direct labor
Indirect materials
Indirect Labor
the materials that are directly involved in the making of a p…
Also known as "hands on" labor because the people typically t…
insignificant materials such as glue which aren't worth track…
labor costs that cannot be traced to particular products
Direct Materials
the materials that are directly involved in the making of a p…
Direct labor
Also known as "hands on" labor because the people typically t…
Managerial Accounting
cost behavior
relevant range
variable costs
total variable costs
classify cost based on how they respond to a change in activity
reasonable assumptions (can't assume everything)
change in total in proportion to changes in activities. Respo…
changes in total changes but per unit it stays the same.
cost behavior
classify cost based on how they respond to a change in activity
relevant range
reasonable assumptions (can't assume everything)
52 terms
Managerial Accounting
A mixed cost has a minimum cost of hav…
When mixed costs are represented by a…
_____ costs remain constant in total w…
A regional sales manager's salary woul…
True
True
Fixed
True
A mixed cost has a minimum cost of hav…
True
When mixed costs are represented by a…
True
32 terms
Managerial Accounting
the level of sale at which profit is z…
a ratio computed by dividing CM by dol…
a graphical representation of the rela…
a measure of how a percentage change i…
break even point
Contribution margin ratio
cost-volume-profit graph
degree of operating leverage
the level of sale at which profit is z…
break even point
a ratio computed by dividing CM by dol…
Contribution margin ratio
Managerial Accounting
5 classifications of cost
2 cost behavior classifications
Fixed cost
Variable cost
1. Behavior... 2. Traceability... 3. Controlability... 4. Relevance... 5.…
Fixed and variable
It does not change with changes in the volume of activity
Changes in proportion to changes in the volume of activity
5 classifications of cost
1. Behavior... 2. Traceability... 3. Controlability... 4. Relevance... 5.…
2 cost behavior classifications
Fixed and variable
46 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…
40 terms
Managerial accounting
Taxes influence many types of business…
Taxes influence business decisions suc…
Tax policy rarely plays an important p…
Margaret recently received a parking t…
False
True
False
False
Taxes influence many types of business…
False
Taxes influence business decisions suc…
True
39 terms
Managerial Accounting
typically do not have an inventory acc…
Honda Motors converts _into finished p…
An insurance​ company, a health care​…
buy products in bulk from​ producers,…
service companies
raw materials inventory
service companies
wholesalers
typically do not have an inventory acc…
service companies
Honda Motors converts _into finished p…
raw materials inventory
managerial accounting
comparing
directing
planning
managerial acc
Comparing and evaluating actual results with planned results…
Overseeing the day to day operations using information relate…
Setting goals & objectives and determining how to achieve them.
internally focused, focused on the future, no mandatary rules…
comparing
Comparing and evaluating actual results with planned results…
directing
Overseeing the day to day operations using information relate…
Managerial Accounting
Relevant Cost
Sunk Cost
Opportunity Cost
Sarbanes Oxley
Costs which differ among alternatives; ex: a flight that offe…
Costs already occured: ex: in july january costs already paid…
Benefits forgone by choosing an alternative over another. Ch…
Law that makes management responsible for financial reporting…
Relevant Cost
Costs which differ among alternatives; ex: a flight that offe…
Sunk Cost
Costs already occured: ex: in july january costs already paid…
8 terms
Managerial Accounting
Variable costs
Fixed costs
Cost classifications
Relevant range
Remains the same per unit at every level. Costs that may chan…
Higher with one unit, lower with many units.
...
The range that a company expects to operate during a year.
Variable costs
Remains the same per unit at every level. Costs that may chan…
Fixed costs
Higher with one unit, lower with many units.
Managerial Accounting
ROI
Margin
Turnover
Residual Income
NOI/AOA= Margin x Turnover
NOI/Sales
Sales/AOA
NOI-(AOA x Min required Rate of Return)
ROI
NOI/AOA= Margin x Turnover
Margin
NOI/Sales
22 terms
Managerial Accounting
Accounting
Cash Base Accounting
Accrual Base Accounting
GAAP
process of recording financial transactions, summarizing them…
Recorded when cash is earned or expenses generated
Recorded when revenues are generated and expenses are paid
Generally Accepted Accounting Principals
Accounting
process of recording financial transactions, summarizing them…
Cash Base Accounting
Recorded when cash is earned or expenses generated
11 terms
Managerial Accounting
Managerial Accounting
Manufacturing Costs
Manufacturing Overhead
Non manufacturing Cost
Providing information to managers for use within the organiza…
Direct material, direct labor, manufacturing overhead
Indirect materials, labor, Maintenance, Property Taxes, Depre…
Selling Cost and Administrative Cost
Managerial Accounting
Providing information to managers for use within the organiza…
Manufacturing Costs
Direct material, direct labor, manufacturing overhead
61 terms
Managerial Accounting
Financial Accounting
Managerial Accounting
3 main managerial accounting functions
Planning
mainly for external users. ... Work on financial statements and…
Internal users ... Internal reports as needed ... Pertains to subun…
Planning, directing, and controlling.
Maximize short-term profit and market share... Add value to busi…
Financial Accounting
mainly for external users. ... Work on financial statements and…
Managerial Accounting
Internal users ... Internal reports as needed ... Pertains to subun…
Managerial Accounting
Inventory turnover rate target
solvency ratio target
Accounts payable peroid target
quick ratio target
>10
<80%
14 days
>1.1 and <2.0
Inventory turnover rate target
>10
solvency ratio target
<80%
12 terms
Managerial Accounting
financial accounting
managerial accounting
direct material cost
direct labor cost
...
...
major material inputs that can be directly and easily traced…
cost of labor that can be directly and easily traced to the p…
financial accounting
...
managerial accounting
...
Managerial Accounting
prevention
prevention
prevention
appraisal
quality engineering
statistical process control
systems development
inspection
prevention
quality engineering
prevention
statistical process control
Managerial Accounting
Direct material Cost Variance=
DM Price Variance=
DM Quantity Variance=
Direct Labor Cost Variance=
Price Variance- Quantity Variance
(AP-SP) x AQ
(AQ-SQ) x SP
Rate Variance-Efficiency Variance
Direct material Cost Variance=
Price Variance- Quantity Variance
DM Price Variance=
(AP-SP) x AQ
Managerial Accounting
Three Objectives of Managerial Account…
Planning (setting objectives or budget)
Controlling (actual performance vs. ex…
Decision Making
Planning, Controlling, Decision Making
detailed formation of action to achieve a particular end
monitoring a plans implementation and taking corrective action
choosing among competing alternatives
Three Objectives of Managerial Account…
Planning, Controlling, Decision Making
Planning (setting objectives or budget)
detailed formation of action to achieve a particular end
54 terms
Managerial Accounting
US companies must follow GAAP or IFRS…
Financial accounting develops reports…
When managers evaluate the​ company's…
are decision makers inside a company.
Financial Accounting
creditors and shareholders
controlling
managers
US companies must follow GAAP or IFRS…
Financial Accounting
Financial accounting develops reports…
creditors and shareholders
Managerial accounting
Contribution Margin
Contribution Margin Ratio
Break even sales (units)
Manufacturing margin
Sales - variable expenses
Contribution margin divided by sales
Fixed costs divided by unit margin contribution
Sales - cost of goods sold
Contribution Margin
Sales - variable expenses
Contribution Margin Ratio
Contribution margin divided by sales
Managerial Accounting
Cost of Goods Sold
Product Costs
Period Costs
Prime Cost
Beginning Inventory + Purchases - Ending Inventory
Direct Materials, Direct Labor, Manufacturing Overhead
Selling and Administrative Expenses
Direct Materials + Direct Labor
Cost of Goods Sold
Beginning Inventory + Purchases - Ending Inventory
Product Costs
Direct Materials, Direct Labor, Manufacturing Overhead
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