Managerial Accounting Flashcards

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1
Q

Managerial accounting?

A

Creates confidential information for internal use for managers in decision making and running the business

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2
Q

Managers use accounting info internally TO… (3)

A
  • to work out pricing strategies
  • to determine the price of products and services
  • to plan and control the business
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3
Q

Consolidate?

A

Bring together, unite, combine

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4
Q

Iterative?

A

Repetitive

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5
Q

Master budget?

A

Budgeted income statement, cash budget and budgeted statement of financial position. Basis for benchmarking.

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6
Q

Zero-based budgeting?

A

Start budgeting from scratch, without considering previous years budgets

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7
Q

Incremental budgeting?

A

Taking previous years budget and adjusting it.

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8
Q

Manufacturing overhead?

A

Any other manufacturing cost not included under direct materials and direct labour.

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9
Q

Incremental costs?

Opportunity costs?

A
  • they arise from the given decision

- revenue lost from alternative options

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10
Q

Prime costs?

Cost driver?

A
  • direct costs incurred

- the primary factor that causes costs

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11
Q

Variable costs?

Fixed costs?

A
  • change in total in direct proportion to change in volume of activity
  • to not change in total as volume changes.
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12
Q

Conversion costs?

A

Costs of converting direct material to finished products.

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