Test 1 (acct) first packet Flashcards
What is managerial accounting
Providing information to managers for use within the organization, giving info to interal users
Financial and managerial accounting, the 7 key differences
- users
- Time focus
- verifiability
4.precision vs timeliness
5.subject
6.Rules - requirements
Work of management, what three jobs does a manager have?
planning, controlling and decision making
What does planning consist of?
Establishing goals, specify how goals will be achieved, and developing budgets
What does planning do?
it can have budgets to predict what will happen in the future, and can budget for utility costs future revenue, etc.
What does controlling consist of?
Function gathers feedback to ensure the plans are being followed
What is an essential part of the control function of work of management?
feedback in the form of performance reports that compare actual results with the budget
What else can the control function do?
It can ensure people work towards a goal.
Observes that people actions/ behaviors follows a plan
What three questions are asked when decision-making?
What should we be selling, who should we be serving, how should we execute?
What is decision making?
involves making a selection among competing alternatives
What is a certified management accountant
a management accountant who has the necessary qualifications and who passes a rigorous professional exams
What is the primary purpose of the ACCT 2 course?
To teach measurement skills that managers use to support, planning, control, and decision-making activities.
What are 3 manufacturing costs
Manufacturing costs, direct labor, and manufacturing overhead
materials that become an integral part of the finished product and can be easily traced to the finished product
Direct materials
Labor cost that can be easily traced to the finished product/ directly work on the making of the product
Direct labor
All manufacturing costs except direct materials and direct labor
Manufacturing overhead
What type of costs are selling costs and administrative costs?
non-manufacturing costs
manufacturing costs are also known as
product costs
non-manufacturing costs are also called
period costs
raw materials, work in process, finished goods are all what type of accounts on the balance sheet
inventory accounts
materials that are used to make a product
raw materials
units of product that are partially complete and will require further work before they are ready for sale to a customer
Work in process (WIP)
units of product that have been completed but have not yet been sold to customers
finished goods
a cost that varies in total in direct proportion to changes in the level of activity.
Variable cost
a variable cost is constant per unit of
activity
a cost that remains constant, in total, regardless of changes in the level of activity
fixed cost
A ______ is a constant in total for changes in activity within the relevant range
fixed cost
a____ is inversely related to activity when expressed on a per unit basis
fixed cost
a difference in costs between two alternatives under consideration
differential costs
the potential benefit that is given up when one alternative is selected over another
opportunity cost
a cost that has already been incurred and that cannot be changed by any decision made now or in the future
sunk cost
All costs of production are treated as product costs, regardless of whether they are variable or fixed
absorption costing
what are the two type of absorption costing systems?
job-order costing and process costing
used where different type of products are produced
job-order costing
used where single,homogeneous product is produced
process costing
only variable production costs are included in product costs
variable costing
