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Managerial Accounting > Managerial Accounting > Flashcards

Managerial Accounting Flashcards

1
Q

Define Administrative Costs

A

All executive, organizational and clerical costs accociated with the general management of an organization rather than with manufacturing, marketing, or selling.

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2
Q

Common Costs

A

Incurred to support a number of cost objects but cannot be traced to them individually. Example: wage of airline pilot

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3
Q

Conversion Cost

A

DL+MOH

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4
Q

Cost Behavior

A

The way in which a cost reacts to changes in the level of activity

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5
Q

Cost object

A

Anything for which cost data are desired

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6
Q

Cost of Goods Manufactured (COGM)

A

Manufacturing costs associated with goods that were finished during the period

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7
Q

Differential Cost

A

A difference in cost between two alternatives

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8
Q

Differential Revenue

A

The difference in revenue between two alternatives

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9
Q

Direct Cost

A

A cost that can be easily and conveniently traced to a specific cost object

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10
Q

Direct Labor

A

Factory labor costs that can be easily traced to individual units of a product. Also called Touch Labor

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11
Q

Direct materials

A

Materials that become an integral part of a finished product and whose costs can be conveniently traced to it

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12
Q

Finished goods

A

units of a product that have been completed but not yet sold to customers

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13
Q

Fixed Cost

A

A cost that remains constant regardless of changes in the level of activity w/in the relevant range

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14
Q

Incremental Costs

A

An increase in cost between two alternatives

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15
Q

Indirect Cost

A

A cost that cannot be easily and conveniently traced to a specified cost object

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16
Q

Indirect Materials

A

Small Items of material such as glue and nails. Their costs cannot be conveniently traced to it

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17
Q

Inventoriable Costs

A

Product Costs

18
Q

Manufacturing Overhead (MOH)

A

All costs associated with manufacturing except direct materials and direct labor

19
Q

Marketing or selling costs

A

All costs necessary to secure customer orders and get the finished product or service into the hands of the customer

20
Q

Period Cost

A

Taken directly to the income statement as expenses in the period in which they are incurred

21
Q

Prime Cost

A

DM + DL

22
Q

Product Costs

A

All costs that are involved in the purchase or manufacture of goods.

23
Q

Raw Materials

A

Any materials that go into the final product

24
Q

Relevant Range

A

The range of activity within which assumptions about variable and fixed cost behavior are valid

25
Q

Schedule of cost of goods manufactured

A

Shows the direct materials, direct labor, and MOH costs incurred for a period and that are assigned to WIP and completed goods

26
Q

Variable Cost

A

A cost that varies in direct proportion to changes in the level of activity. It is constant per unit

27
Q

What is the formula for COGS?

A

COGS=Beg. inventory +Purchases or COGM - ending inventory

28
Q

What costs make up manufacturing overhead?

A

MIIRUSDP

  1. Maintenance
  2. Insurance
  3. Indirect Labor
  4. Rentals
  5. Utilities
  6. . Supplies
  7. Depreciation
  8. Property Taxes
29
Q

What is the formula for schedule of COGM?

A

DM+DL+ MOH + (Beg. WIP -End WIP)

30
Q

What costs would be associated with wood used to build a table?

A

Variable

DM

31
Q

What costs would be associated with labor to assemble a table?

A

Variable

DL

32
Q

What costs would be associated with the salary of a factory supervisor?

A

Fixed

MOH

33
Q

What costs would be associated with cost of electricity to product tables ($2/machine hour)

A

Variable

MOH

34
Q

What costs would be associated with depreciation of machines used to produce tables?

A

Fixed
MOH
Sunk

35
Q

What costs would be associated with the salary of the company president?

A

Fixed

Period (Selling and Admin Costs)

36
Q

What costs would be associated with advertising expenses? ($250k/year)

A

Fixed

Period (Selling and Admin Costs)

37
Q

What costs would be associated with commissions paid to salespersons?

A

Variable

Period (Selling and Admin Costs)

38
Q

What costs would be associated with Rental income forgone on factory space?

A

Opportunity cost

39
Q

what is the formula for direct materials cost on a schedule of COGM?

A

Beg. inventory + purchases or COGS - Ending inventory

40
Q

Advertising, shipping, sales travel, sales commissions, and sales salaries are examples of what type of cost?

A

marketing costs

41
Q

Executive comp, accounting,secretary, and PR are examples of what type of cost?

A

admin costs

42
Q

What is the formula for COGS?

A

finished goods inventory + COGM + goods available - end finished goods inventory

Managerial Accounting (1 decks)

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