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BUS 102 > FINAL > Flashcards

FINAL Flashcards

1
Q

information collected by managerial accountants

A

historical and estimated data

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2
Q

what is historical data

A

provide objective measures of post operations

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3
Q

what is estimated data

A

provide subjective estimates about future decisions

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4
Q

what are the 5 elements of the management process?

A

planning, directing, controlling, improving and decision making

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5
Q

what is planning?

A

used in developing the company goals and translating goals into courses of action

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6
Q

what is directing?

A

a process by which managers run the day to day operations

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7
Q

what is controlling?

A

monitoring operating results with the expected results

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8
Q

what is improving?

A

continuous process improvement

management by exception

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9
Q

what is decision making?

A

inherent in each of the preceding management processes

when managing a company management must continually decide among alternative actions

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10
Q

strategic planning

A

long term strategies

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11
Q

operational planning

A

short term strategies

day to day

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12
Q

continuous process improvement

A

philosophy of continually improving employees, business processes, products, etc
to eliminate the source of problems in a process

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13
Q

management by exception

A

philosophy of controlling by comparing actual and expected results

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14
Q

direct costs

A

identified with and traced to a cost object

ex: cost of wood to make a guitar

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15
Q

indirect costs

A

are not identified with or traced to a cost object

ex: cost of salaries of supervisors in guitar making

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16
Q

period costs

A

-Selling and administrative expenses incurred in marketing the product, delivering the product, or managing the company and not directly related to manufacturing the product.
-used in generating rev during the current period
not involved in the manufacturing process
recorded as expenses of the current period

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17
Q

prime costs

A

The combination of direct materials and direct labor costs.

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18
Q

product costs

A

The three components of manufacturing cost: direct materials, direct labor, and factory overhead costs.

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19
Q

underapplied foh

A

the amount applied (using POHR) is LESS THAN the actual amount
factory oh will have debit balance

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20
Q

overapplied foh

A

the amount applied (using POHR) is GREATER THAN the actual amount
FOH will have credit balance

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21
Q

product costing allocating methods

A

single plantwide FOH rate method

multiple productions dept FOH rate method

activity based costing method

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22
Q

single plantwide method

A

costs are allocated to products using only one rate total
budgeted FOH/total budgeted plantwide allocation base
simple and inexpensive

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23
Q

Multiple production dept FOH rate method

A

uses diff rates for each dept to allocate FOH costs to products

budgeted dept FOH/budgeted dept allocation base

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24
Q

ABC method

A

provides an alternative approach for allocating FOH that uses multiple FOH rates based on diff activities

costs are initially budgeted for activities

budgeted activity costs/total activity base usage used for each activity

25
Q

variable costs

A

Vary in proportion to changes in activity base
Total: -Increases and decreases proportionately w/ activity level
per unit: Remains the same regardless of activity level

26
Q

fixed costs

A

Remain the same in total dollar amount as the activity base changes
total:Remains the same regardless of activity level
per unit: Increases and decreases inversely with activity level

27
Q

order of budgets for preparation

A

Operating

  • Sales
  • Production
  • Direct material purchases
  • Direct labor cost
  • FOH
  • COGs
  • Selling & admin expenses (uses sales budget as the starting point)
  • Budgeted income statement (sales, cogs, selling and admin)
28
Q

direct materials and direct labor costs are normally classified as

A

variable costs

29
Q

high low method

A
  • Cost estimation methods
  • Find the highest point in units produced and subtract the lowest amount (units produced and total cost)
  • Variable cost per unit: difference in total cost/difference in units produced
30
Q

mixed costs

A

have characteristics of both a variable and a fixed cost
For purposes of analysis, mixed costs are usually separated into their fixed and variable components by using the high-low method

31
Q

contribution margin ratio

A
  • indicates the percentage of each sales dollar available to cover fixed costs and to provide operating income
  • contribution margin/sales
32
Q

types of budgets

A 
static
flexible
zero based
continuous
operating
financial
33
Q

static budget

A

shows the expected results of a responsibility center for only one activity level Once the budget has been determined, it is not changed, even if the activity changes.

34
Q

flexible budget

A

show the expected results of a responsibility center for several activity levels, series of static budgets.

35
Q

zero based

A

requires managers to estimate sales, production, and other operating data as though operations are being started for the first time

36
Q

continuous

A

maintains a 12-month projection into the future. The 12-month budget is continually revised by replacing the data for the month just ended with the budget data for the same month in the next year,

37
Q

operating budget

A

sales, COGS budget, production, dm purchased, dl cost, FOH, sell + admin,can be used to prepare a budgeted income statement

38
Q

financial budget

A

cash, cash expenditure,provide info for a budgeted balance sheet

39
Q

standard cost includes

A

direct materials
foh
direct labor

40
Q

ideal standards

A

only achieved with perfect conditions

41
Q

normal standards

A

attained with reasonable effort
allow for normal production difficulties and mistakes
employees focus more on cost and are more likely to put forth best efforts

42
Q

what 2 components can the standards for direct materials, labor, and foh be separated into?

A

cost an quantity

43
Q

when is a variance unfavorable?

A

actual>standard

44
Q

when is a variance favorable?

A

standard>actual

45
Q

what is cost variances?

A

difference between actual and standard costs

46
Q

what is a total manufacturing cost variance?

A

difference between total standard costs and total actual costs

47
Q

total direct material variance is separated into what

A

a price and quantity variance

48
Q

total direct labor variance is separated into what

A

a rate and time variance

49
Q

direct materials price variance

A

(actual price - standard price) * actual quantity

50
Q

direct materials quantity variance

A

(actual quantity- standard quantity) * standard price

51
Q

direct labor variance formula

A

(actual rate per/h - standard rate per/h) * actual hours

52
Q

direct labor time variance formula

A

(actual direct labor hours - standard direct labor hours) * standard rate per/h

53
Q

conversion costs

A

direct labor and foh

54
Q

COGS manufactures

A

work in process inventory beg of month (cr)
cost of dm used in production + dl + foh (de) = Total manufacturing costs incurred (cr) + work in process inventory beg = total man costs - work in process inventory end of month = cogs man

55
Q

break even in sales units

A

fixed costs/ unit contribution margin

56
Q

unit contribution margin

A

sales price per unit-var cost per unit

57
Q

prepare a flexible budget

A

total sales across top
Variable cost
add all variable costs together for each sale amount
total var cost
Fixed costs
add all fixed costs together for each sale amount (amounts remain the same)
total fixed costs
add total var and fixed costs for total _____

58
Q

activity rate formula

A

budgeted activity cost/total activity base usage

BUS 102 (7 decks)

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