Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Management Accounting > Semester 1 > Flashcards

Semester 1 Flashcards

(58 cards)

Start Studying
1
Q

What is the purpose of information systems?

A
  1. Process data
  2. Store data/info
  3. Communicate info
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What do information systems produce output for?

A

-Planning
-Recording + processing transactions
-Monitoring + measuring performance
-Controlling
-Decision making

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Types of information systems

A

TPS (Transaction processing system)
MIS (Management info system)
EIS (Executive info system)
ERP (Enterprise resource planning)
CRMS (Customer relationship management software)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Information levels

A
  1. Strategic: LT Decisions, Uncertain, external sources
  2. Tactical: Activity summary, medium term planning, internal
  3. Operational: V detailed, lots data, ST Decisions, internal
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is big data?

A

Large volumes of raw data, analysed to reveal patterns

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is a cost object?

A

Any activity that requires a separate measurement of costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Name the manufacturing costs

A
  • Direct materials
  • Direct labour
  • Manufacturing overheads
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Name the non-manufacturing costs

A
  • Administrative overheads
  • Marketing overheads
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is equation for prime cost?

A

Direct material + Direct labour

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is equation for conversion cost?

A

Direct labour + manufacturing overheads

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Is a supervisor salary an indirect or direct cost?

A

It depends on cost object

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is a product cost?

A

A manufacturing cost
An asset (inventory) in BS when unsold
An expense in IS when sold
Included in inventory valuation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is a period cost?

A

It’s a non-manufacturing cost
It’s an expense in IS
Not included in inventory valuation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Do total variable costs increase or decrease over time?

A

Increase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Do variable costs per unit increase or decrease over time?

A

They remain the same

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Do total fixed costs increase or decrease over time?

A

They remain the same

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Do fixed costs per unit increase or decrease over time?

A

Decrease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a semi-variable cost?

A

Part fixed part variable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is a step fixed cost?

A

Remains fixed until a certain point

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is FIFO?

A

Oldest stock sold first, so inventory valued @ newest price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is LIFO?

A

Newest stock sold first, so inventory’s valued at oldest price
Not allowed by IAS 2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is WAC?

A

No order pattern for items sold, so inventory’s valued at same price (average price)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is capital expenditure?

A

Big 1 off asset purchase
Used to generate revenue over long term
E.g property, machinery

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is revenue expenditure?

Study These Flashcards
A

Daily, ongoing costs to allow business to operate
E.g rent, wages, admin fees

25
High low method
Variable costs = difference in cost/ difference in output
26
High low method
Variable costs = difference in cost/ difference in output
27
What is Job order costing?
Method used to calculate costs of individual products/batches E.g mattress company who have lots of different products
28
What is process order costing?
Method used to calculate costs for mass production of 1 product E.g paper company just making paper
29
What is process order costing?
Method used to calculate costs for mass production of 1 product E.g paper company just making paper
30
OAR Plant Wide Rate method + features
Simple but inaccurate Applies overheads direct to production department (allocation bases are labour + machine hours) Only valid for businesses with a few products
31
OAR 2 Stage allocation process
Complex but more accurate Applies to traditional and ABC systems
32
Contribution sales ratio
Contribution / selling price x 100
33
Contribution per unit
Selling price - variable cost
34
Break even point definition
Number of units needed to be sold to cover fixed costs TR=TC
35
BEP (in units)
Fixed costs/CPU
36
Margin of safety (revenue)
Total revenue- BEP revenue
37
Margin of safety (%)
Actual units - BEP units ——————————— Actual units
38
BEP revenue
Fixed cost/ CS ratio
39
Does change in total sales volume change the BEP?
No
40
Target profit units needed
Fixed costs + target profit ———————————- CPU
41
Marginal costing aspects
Cost of producing 1 extra unit Used for ST decision making Total variable costs to produce 1 extra unit Not acceptable under IAS2
42
Absorption costing aspects
All costs of manufacturing 1 product Used to calculate inventory valuation and profit Acceptable under IAS2
43
If there’s a limiting factor what do you prioritise? And if there’s not ?
Yes- prioritise CPU of limiting factor No- prioritise CS ratio
44
Draw a break even chart
Check internet
45
Assumptions of limiting factor theory
CPU is consistent for each product Production process is linear + resources used at constant rate Resources availability is limited + must be allocated efficiently
46
Functions of a budget
Planning Coordinating Communicating Motivating Evaluating performance
47
Functions of a budget
Planning Coordinating Communicating Motivating Evaluating performance
48
Different types of budget
Participatory (managers involved at all levels) Zero based budget (start with blank sheet) Incremental budget (start with last years budget) Rolling budget (constantly adjusting same budget)
49
Different types of budget
Participatory (managers involved at all levels) Zero based budget (start with blank sheet) Incremental budget (start with last years budget) Rolling budget (constantly adjusting same budget)
50
Order of budgets
Sales budget Production units , Labour utilisation Materials usage Materials purchase Cash budget
51
Write out the steps in each of 4 budgets
Production units: Sales - opening inv + closing inv ——————- Production units Materials usage: Production units Usage in kg or m ———————— Cost of usage Labour utilisation: Production units Labour hours ———————— Cost of hours Materials purchase: Production units -opening inv + closing inv ———————- Cost of purchase
52
Flexed budget
Budgeted costs with actual units
53
Sales margin volume variance
(Actual units-budgeted units) x budgeted cpu Or different in profit between flexed and normal budget
54
Sales margin price variance
(Actual selling price - standard selling price) x actual units
55
Labour efficiency variance
( Flexed hours - actual hours ) x standard rate
56
Labour rate variance
( Standard rate - actual rate ) x actual total hours
57
Material usage variance
( Flexed total quantity - actual total quantity ) x standard price per m
58
Material price variance
(Standard cost per m - actual cost per m) x actual total quantity

Management Accounting (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions