Cost Exam 1 (Ch 1-4) Flashcards
Who is the audience in managerial accounting?
Internal management
What are the 3 purposes of managerial accounting?
Planning
Controlling
Decision Making
The control process of managerial accounting involves gathering, evaluating, and responding to ______.
feedback
What are 3 uses for managerial accounting reports?
planning for the future
making progress toward goals
making strategic decisions
Strategic management involves coming up with a _____ ______ ______ (a plan for satisfying customers)
customer value proposition
What are the 3 types of customer value propositions?
Customer intimacy
Operational excellence
Product leadership
What are the two goals of risk management?
Identify risks
Develop responses
Adding products that add value and removing products that don’t is known as ____ _______.
Process management
When products are produced in response to customer orders, this is known as Just-in-Time production, or ______ production.
Lean
The weakest link, or “constraint” is also known as the ______.
Bottleneck
6 traits of a good leader:
Technically competent Person of integrity Effective in implementing organizational change Strong communicator Capable of motivating Effective manager
What are the 4 principles in the Statement of Ethical Professional Practice?
Honesty
Fairness
Objectivity
Responsibility
What are the 4 standards in the Statement of Ethical Professional Practice?
Competence
Confidentiality
Integrity
Credibility
Corporate social responsibility considers the needs of all ________.
Stakeholders
The way the company is directed and controlled is known as _____ _______.
Corporate governance
Internal controls can be either _____ or ______.
preventative
detective
What is the difference between indirect materials and direct materials?
Direct materials can be traced to the product. Indirect materials are not cost effective to trace.
What is the difference between indirect labor and direct labor?
Direct labor is provided by the people who actually touch the product.
What are the 3 components of manufacturing overhead?
Indirect labor
Indirect materials
Other overhead
What are the two types of non manufacturing costs?
Selling costs
Administrative costs
What is another term for non manufacturing costs?
Period costs
What does Prime Cost consist of?
Direct materials and direct labor
What does Conversion Cost consist of?
Direct labor and overhead
The way a cost reacts to a change in activity level is known as ____ _____.
Cost behavior