Exam 1-202 Flashcards
Managers responsibilities
Plan, direct, and control
Line position
People directly involved in achieving the basic objectives of the organization
Line position examples
Board of directors, president, CEO/COO, managers of plants
Staff positions
People who provide assistance to the line positions, but dont have direct authority over line positions
Staff positions examples
CFO, treasurer, accountants, HR, legal
Principals of ethics
Honesty, fairness, objectivity, reaponsibility
Standards of behavior
Competence, confidentiality, integrity, credibility
Strategies for unethical behavior
Talk with supervisor, call IMA/talk to counselor, consult with attorney
Extensible business reporting language (XBRL)
Format used to make statements researchable using data tags
Advantages XBRL
Decreases retrival and conversion time and facilitates comparisons
Triple bottom line
Ecomonic profit, human people, and environmental planet
Value chain
R&D, design, manufacturing, marketing, distribution, customer service
Inventoriable product cost
Raw materials, direct labor, MOH
Period cost
Selling expenses, general ad expenses
DM used
Begining RM+purchases-ending RM
Cost of Goods Manufactures
Begining WP+DM used+DL+MOH-Ending WP
Cost of goods sold
Begining FG+COGM-ending FG
Gross margin
Sales-cost of goods sold
Relevant cost
Differential, marginal, and incremental
Irrelevant cost
Opportunity and sunk cost
Fixed cost
Stay constant over a range of activity levels
Variable cost
Change in proportion to activity level
Total cost
Fixed+ (variable*units)
Average cost
Total/units
Assigning cost to cost objects
Direct and indirect
External financial reportinng
Product and period
Performance evaluation
Controllable and noncontrollable
Decison makkng
Relevant and irrelevant
Planning
Variable and fixed
POHR
Estimated MOH/ Estimated total units
MOH allocated
POHR* actual activity level
Steps to ABC
Create pools, select allocation for pools, calculate allocation rate, allocate MOH to activitest
Eight typical waste
Defects, overproduction, waiting, not using full potential, transportation, inventory, movement, excess processing
Prevention cost
Avoid producing poor quality goods or services
Appraisal cost
Detect poor quality goods or services
Internal failure cost
Cost incurred on defective products before delievery
External failure cost
Incurred after defected product is delievered
Unit level
Activites and cost incurred for every unit
Batch level
Activities and cost incurred for every batch regardless of how many units
Product level
Activites and cost incurred for a particular product regardless of units or batches
Factity level
Activites and cost incurred no matter how many units, batches, or products
