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Spring Finals 2015 > Managerial Accounting > Flashcards

Managerial Accounting Flashcards

1
Q

what formula would be used to show that the lower a business’s costs, the greater are its profits?

A

revenue = profit + costs

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2
Q

a process that assigns each employee’s time to different activities performed and then determines the cost spent on each activity as a percentage of each worker’s time and pay

A

activity based costing

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3
Q

using activity based costing to examine expenses

A

activity based management

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4
Q

the total of food cost percentage plus variable cost percentage found in the denominator of the calculation for minimum sales point

A

fixed cost

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5
Q

a cost that increases as sales volume increases and decreases as sales volume decreases

A

variable cot

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6
Q

a cost that contains a mixture of both fixed and variable cost characteristics

A

mixed cost

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7
Q

a cost that increase as a range of activity increases or as a capacity limit is reached

A

step cost

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8
Q

a cost that can be directly attributed to a specific are or profit center within a business

A

direct cost

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9
Q

a cost that is not easily assigned to a specific operating unit or department

A

indirect cost

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10
Q

also referred to as indirect cost

A

overhead cost

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11
Q

a system used by management to assign portions of overhead costs among various profit centers

A

cost allocation

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12
Q

a cost over which a manger has primary control

A

controllable cost

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13
Q

a cost which a manager cannot control in the short-term

A

non-controllable cost

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14
Q

a cost that should be allocated to two (or more) departments or profit centers

A

joint cost

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15
Q

the increased cost of each additional unit

A

incremental cost

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16
Q

the cost that should be incurred given a specific level of volume

A

standard cost

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17
Q

a cost that has already been incurred and whose amount cannot now be altered

A

sunk cost

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18
Q

the cost of foregoing the next best alternative when making a decision

A

opportunity cost

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19
Q

the point that operational expenses are exactly equal to sales revenue

A

breakeven point

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20
Q

the approach that predicts the sales dollars and volume required to achieve a breakeven point or desired profit based on known costs

A

cost/volume/profit (CVP) analysis

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21
Q

an income statement that shows items in terms of sales, variable costs, contribution margin, fixed costs, and profit

A

contribution margin income statement

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22
Q

the dollar amount, after subtracting variable costs from total sales, that contributes to covering fixed costs and providing for a profit

A

contribution margin

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23
Q

the amount that shows how close a projected amount of sales will be to breakeven, and thus, how close an operation will be to incurring a loss

A

margin of safety

24
Q

the dollar sales volume required to justify staying open for a given period of time

A

minimum sales point (MSP)

25
Q

the dollar sales volume required to justify staying open for a given period of time

A

minimum operating cost

26
Q

financial plan

A

budget

27
Q

the highest ranking officer in charge of the overall management of a company

A

Chief Executive Officer (CEO)

28
Q

budget length into the future

A

horizon

29
Q

a budget prepared for a period of up to five years

A

long-range budget

30
Q

a budget prepared yearly

A

annual budget

31
Q

a short-range budget consisting of a month, a week, or a day

A

achievement budget

32
Q

a budget concerned with planning for the revenues, expenses, and profits associated with operating a business

A

operations budget

33
Q

a budget developed to estimate the actual impact on cash balances that will result from a business’s operating activities, investing activities, and financing activities

A

cash budget

34
Q

the expense associated with the purchase of land, property and equipment, and other fixed assets that are recorded on the balance sheet

A

capital expenditure

35
Q

a budget used to plan for capital expenditures

A

capital budget

36
Q

expense

A

line item

37
Q

the non-wage costs associated with, or allocated to, payroll

A

payroll allocations

38
Q

the difference between planned results and actual results

A

variance

39
Q

the difference between planned and actual results that are an improvement on the budget (revenues are higher or expenses are lower)

A

favorable variance

40
Q

the difference between planned and actual results when actual results do not meet budget expectations (revenues are lower or expenses are higher)

A

unfavorable variance

41
Q

a difference in dollars or percentage between budgeted and actual operating results that warrants further investigation

A

significant variance

42
Q

a budget that incorporates the assumptions of the original budget, such as fixed costs and target variable costs per unit or variable cost percentages, and then projects these costs based on varying levels of sales volume

A

flexible budget

43
Q

the general term used by managerial accountants to identify a variety of cash monitoring and management activities

A

cash budgeting

44
Q

the concept of total cash receipts (cash in) and cash disbursements (cash out) which occurs in a business in a specific accounting period

A

cash flow

45
Q

a report used by management to monitor the average length of time money owed to the business has remained uncollected

A

accounts receivable aging report

46
Q

an official declaration that an account receivable is uncollectible

A

write-offs

47
Q

a term used to describe a business that is chronically short of the capital (money) it needs to sustain its operation

A

undercapitalized

48
Q

a budgeting approach that sums the anticipated cash payments during a specific accounting period to forecast cash excesses or cash shortages

A

cash receipts/disbursements approach to cash budgeting

49
Q

the unlawful taking of a business’s property

A

theft

50
Q

the intentional use of dishonest methods to take property

A

fraud

51
Q

employee theft

A

embezzlement

52
Q

theft using force

A

robbery

53
Q

having more money than anticipated in the cashier’s bank

A

over (cash bank)

54
Q

having less money than anticipated in the cashiers bank

A

short (cash bank)

55
Q

the secret cooperation of two or more employees to commit fraud

A

collusion

56
Q

the method by which an employee uses another’s time card to punch that second employee in or out

A

buddy punching

Spring Finals 2015 (1 decks)

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