Chapter 1 Flashcards
lected by the stockholders, the owners of Smart Touch Learning, and is responsible for developing the strategic goals of the corporation
Board of Directors
is ultimately responsible for developing a plan to meet the company’s short- and long-term strategies as well as overseeing the implementation of the plans
CEO
staff that are directly involved in providing goods or services to customers.
Line positions
support the line positions. Vice president—chief financial officer (CFO), controller, treasurer, and payroll processing manager are examples.
Staff Positions
means choosing goals and deciding how to achieve them. requires managers to look to the future and establish goals for the business.
Planning
this type of planning involves developing long-term strategies to achieve a company’s 3-10 year goals
Strategic
This type of planning focuses on short-term actions dealing with a company’s day-to-day operations. are most often one year in length, but may also span only a week, a month, or a quarter.
Operational
involves running the day-to-day operations of a business.
Directing
the process of monitoring day-to-day operations and keeping the company on track.
Controlling
accountant certification that have demonstrated specialized knowledge in budgeting and forecasting, planning and analysis, risk management and internal controls, and performance management.
Certified Managerial Accountants (CMA’s)
Accountant certification which distinguishes accountants as professionals with advanced knowledge in finance, operations, strategy, and management.
Chartered Global Management Accountant
Type of company that sells time, skills, knolwedge
Service
This type of company sells products they purchse from distributors
Merchandising
These companies use labor, supplies, facilities and equipment to convert raw materials to goods
manufacturing
These cost can easily and cost effectively be traced back to cost objects
Direct
Costs theat cannot be easily or cost effectively tied back to a cost object
Inderect
Three types of inventory used by manufacturing companies to track cost
Raw Materials inventory
Work in process Inventory
Finisthed good inventory
Three types of manufacuting cost
Direct materials
Direct labor
manufactuing overhead
are the manufacturer overhead cost of raw materials that are difficult or not cost-effective to trace directly to the product.
Indirect materials
is the manufacturer overhead cost that includes the cost of wages and salaries in the factory for persons not directly producing the product.
Indirect labor
cost that combine the direct costs: direct materials and direct labor.
prime
cost that combine direct labor with manufacturing overhead. These are the costs to convert the direct materials into the finished product.
conversion
cost that include the costs of purchasing or making a product. This cost is considered an asset on the balance sheet until sold, when it is expensed as cost of goods sold.
product cost
costs are selling and administrative expenses and other expenses such as taxes and interest.
Period cost
3 steps to calculate cost of goods manufactured
- Calculate direct materials used
- Calculate total manufacturing cost (direct materials and labor, and OH manufacturing)
- Calculate cost of goods manufactured by adding the total manufacturing cost to the beginning work in process costs, then subtract the ending work in process inventory.
How to calculate cost of goods sold in a manufacturing operation
It is the cost of finished goods inventory that has been sold. Cost of goods sold = (Beginning inventory plus cost of goods manufactured) - ending inventory
Costs of the goods the finished the production process in a given accounting period
Cost of goods manufactured
how to calculate unit product cost
cost of goods manufactured/total units produced
Software that can help companies integrate all of it’s companies functions, departments, and data into one system.
Enterprise resource planning (ERP) system
is a philosophy of continuous improvement of products and processes. Continuous improvement leads to fewer defects and higher customer satisfaction.
Total Quality Management
refers to profits, people, and the planet—the economic, social, and environmental impact of doing business.
triple bottom line
how to calculate unit cost per service provided
Total operating cost/total number of services provided
