MA Flashcards
1
Q
prime cost
A
direct materials+direct labor costs
2
Q
conversion costs
A
direct labor costs + overhead costs
3
Q
GOGM
A
direct materials+direct labor costs+overhead+ be. bal. WIP- end. bal. WIP
4
Q
GOGS
A
GOCM+ be. bal. finished goods- end. bal. finished goods
5
Q
operating income
A
revenues- COGS - operating expenses
6
Q
role of management accountant
A
- PLANNING: achieve a particular end
- CONTROLLING: monitoring, feedbacks
- CONTINOUS IMPROVEMENT: pursuit of improvement
- DECISION MAKING: choosing between alternatives
7
Q
contribution margin
A
sales revenues- total variable costs
8
Q
current operating income
A
contribution margin- fixed costs
9
Q
operating leverage
A
contribution margin/ operating income
10
Q
ROI
A
operating income/average operating assets
11
Q
margin ratio
A
operating income/ sales
12
Q
turnover ratio
A
sales/ average operating assets
13
Q
idle capacity
A
MIN price= variable costs- avoidable selling costs
14
Q
full manufactoring costs
A
MIN price+ fixedd costs
15
Q
value added cost
A
SQ*SP
- SQ = value added output
- SP = standard price
