chapter 1

Question 1

4 accounting objectives

Answer 1

control, planning, documentation, monitoring

Question 2

3 accounting system things

Answer 2

financial, capital budgeting, management accounting

Question 3

what is capital budgeting

Answer 3

long term decisions, process of investment planning

Question 4

financial accounting includes

Answer 4

balance sheet, financial statements, cash flow statement

Question 5

management accounting and cost accounting

Answer 5

cost accounting gives information managers need

Question 6

are there rules for management accounting

Answer 6

not really

Question 7

accounting object for management accounting and financial accounting

Answer 7

management: disaggregated accounts for smaller parts of the company, vs aggregated accounts for segments and whole company

Question 8

time span and frequency of management accounting

Answer 8

more often, daily, weekly monthly reports

Question 9

focus (time wise)management vs financial ?

Answer 9

management past and future

financial past oriented

Question 10

cost accounting vs. capital budgeting forecast

Answer 10

cost accounting up to one year for operational decisions, capital long term effects of decisions, time value of money important

Question 11

cost
revenues
valuated and what?

Answer 11

monetary valuated consumption of resources,(not buying but using) valuated production of goods

Question 12

cash outflows not affecting shareholders equity ( 2 things)

Answer 12

repayment of a loan divident payment

Question 13

expenses cash/equity

Answer 13

cash outlfow affecting equity wealth

Question 14

imputed costs (2)

Answer 14

opportunity costs imputered interest cost

Question 15

cash outlows affecting shareholders equity can be called

Answer 15

expenses

Question 16

can cash outlows affecting shareholders equity be called expenses?

Answer 16

yes

Question 17

Expenses not related to
business objectives
• Expenses related to
other periods
• Extraordinary expenses
are what?

Answer 17

non-operating expenses, and cash outlfow affecting shareholders equity

Question 18

are operating expenses = basic costs (material, salary)?

Answer 18

yes

Question 19

are imputed costs expenses?

Answer 19

no, they are costs that are not operating expenses

Question 20

destruction of a plant , expense, cost , cash outflow?

Answer 20

non-operating expense, cash outflow affecting shareholders equity

Question 21

sale of equipment below book value ? expense, cost , cash outflow?

Answer 21

non-operating expense, cash outflow affecting shareholders equity

Question 22

divident payment expense, cost , cash outflow?

Answer 22

cash outflow not influecning shareholders equity

Question 23

what decreases shareholders equity

Answer 23

decrease of assets

Question 24

average unit costs — (more/less)with total output quantity

Answer 24

decreases (economies of scale)

Question 25

inventoriable costs

Answer 25

costs assigned to a product unit (steel for car)

Question 26

period costs

Answer 26

costs that cant be capitalized (cant be an asset in balance sheet, general admin costs salary)

Period costs are all costs not included in product costs. … Therefore, period costs are listed as an expense in the accounting period in which they occurred. Other examples of period costs include marketing expenses, rent (not directly tied to a production facility), office depreciation, and indirect labor.

Question 27

sunk costs

Answer 27

costs caused by past cant be changed

Question 28

levelized product cost

Answer 28

how expensive a product is over a lifetime

Question 29

cost type accounting question

Answer 29

labor material, depreciation -> how much? (which costs?)

Question 30

cost center accounting question

Answer 30

where is company, departemnt country, where have costs been incurred

Question 31

product and service costing

Answer 31

what type/series/what was sold ?

Question 32

absorption costing explain 5 steps of cost type, cost center, prodcut and service and profit and loss

Answer 32

1. indirect and direct in cost type
2. indirect in cost center
3. indirect and direct in product and service
4. profit and loss
5. reveneue into profit and loss

Question 33

variable costin explain 4 steps

Answer 33

1. cost type accounting fixed indirect, variable indirect, direct cost
2. cost center fixed indirect, variable indirect,
3. product service, variable indirect, direct costs
4. profit and loss take revenues minus variable costs (which is from product and service costing variable indirect and direct costs ), to get CM 1 , then minus fixed indirect from cost center accounting, to get profit or loss

Question 34

what is meants by stuff not influencing shareholders equity

Answer 34

so when there is not a decrease in assets or an increase in liability

Question 35

how is repaying a loan not relevant to shareholders equity

Answer 35

you minus cash from asssetts but then you also decrease the liabilities so in the end your total worth does not change,

Question 36

how does paying dividents not relevant to shareholders equity

Answer 36

you take some cash from assets and you pay dividends in liabilities so again both are proportional so nothing changes

Question 37

what is salary of a manager where the plant only produces one product (fixed/varibale direct/indirect)

Answer 37

fixed direct

direct bc you only make one thing so can directly apply, if you would make many things you couldn’t directly apply

Question 38

when are expenses costs?

Answer 38

when expenses are operationaly relevant

Question 39

is cash needed for opertation?

Answer 39

yes

Question 40

are finished production needed for operation?

Answer 40

yes

Question 41

are accounts receivable needed for operation?

Answer 41

yes