BEC 3: Operations Management - Costing Accounting & Performance Management Flashcards
strategic goals and tactics, related measures associated with strategic and tactical goals, and classifications of critical success factors for the organization’s performance describes what?
a typical balanced scorecard
which of the two would provide a performance report on revenue, profit center or cost center?
profit center because it generates revenues and incur costs. cost centers do not generate revenue.
what would make an accounting reporting system successful?
proper delegation of responsibility and authority
when does overapplied overhead occur?
when the amount of overhead applied is more than the actual amount of overhead incurred
what type of diagram describes a process, contributions to the process, and potential problems that could occur at each phase of a process and provides a framework for managers to analyze the problems that contribute to the occurrence of defects?
fishbone diagram - represented by a single horizontal line while the contributions to the process are represented by a diagonal lines that create the image of a fishbone.
which ratio should be used to compare the profitability of two similar companies in the same industry, but different in size?
return on assets because its a profitability ratio and makes it easy to compare different sized companies
operating profit adds back in what?
interest expense and taxes
what is the operating profit formula?
operating profit / revenue
what is “a casual factor (the cause) that increases the cost (the effect) of a cost objective”?
cost driver
activities that cause costs to increase as the activity increases
cost drivers
what are product costs?
all costs related to the manufacture of the product
1. direct materials
2. direct labor
3. manufacturing overhead
what are period costs?
expensed in the period when they are incurred and not inventoriable (selling, general, & admin)
costs of selling the product and administering and managing the operations of the firm is what type of costs?
period costs
what consists of conversion costs?
direct labor and manufacturing overhead
what consists of prime costs?
direct material and direct labor
