Chapter 1 Flashcards
What is an attempt to match current expenses with current income in the current accounting period?
Accrual Accounting
What is calculated based upon the total cost divided by the number of units?
Average Cost
What are the resources available to an operation that are possessions of the owner, that is equal to the capital?
Assets
What is wealth in the form of money or assets, taken as a sign of the financial strength of an individual, organization, or nation, and assumed to be available for development or investment?
Capital
What is another name for an account that is payable, an obligation to pay in the future?
Liability
What type of budge is generated along with operating statistics to show such factors as cost per unit for labor, supplies, and productivity values?
Pro forma
What reflects the estimated costs that were planned for the current year?
Budgets
What kind of budget is indicated when cash is expected and matching it when expenses are to be paid?
Cash Budgets
What type of budget reflects the costs that are expected?
Expense Budgets
What type of budget is based upon the number of products that could be sold?
Income Budgets
What is the specific ability of an entity (person or organization) or resource, measured in quantity and level of quality, over an extended period?
Capacity
What type of accounting is done asa cash transactions occur, in which bills are paid on the basis of the amount of cash available?
Cash accounting
What compares the cost of a “market basket” of goods and services to a time in the past?
Consumer Price index
What is the most obvious cycle observed in a business operation that uses resources or inputs that have been purchased, processing them to produce a good or service?
Cycle of Operations
What are costs that directly relate to providing goods and services?
Direct Cost
What types of goods can be placed in inventory and gradually used as demanded by the consumer?
Durable goods
What provides information regarding the degree to which the output goals have been achieved through customer comments, data that is recorded, etc?
Feedback control system
What are expenses that do not vary with increases or decreases in volume?
Fixed costs
What shows the interrelationships of systems and subsystems
General system
Statement including the preplanned budget of income and expenses
Income and expense statements
What costs recognize services to the total effort such as housekeeping, security, training, human resource management, and grounds department that are supporting the overall effort?
Indirect cost
What provides energy or resources that will be acted upon to provide a good or service
Inputs
What reflects the cost of producing just one more meal or one less meal and may be used in decision-making regarding increasing or decreasing capacity in terms of the average cost?
Marginal Cost
The good or service produced from the inputs and process are _____
Outputs
