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Introduction to Business > Basic Elements of Managerial Accounting > Flashcards

Basic Elements of Managerial Accounting Flashcards

1
Q

It refers to the value of an asset at a balance date (or point in time)

A

Stock

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2
Q

It refers to the total value of transactions (sales or purchases, incomes or expenditures) during an accounting period

A

Flow

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3
Q

What is the basic accounting equation?

A

Company Equity = fixed assets + current assets - debts (creditors)

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4
Q

What is the basic equation for assets?

A

Assets = Liabilities + Stockholder’s Equity

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5
Q

This refers to the economic resources owned by a business.

A

Assets

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6
Q

This refers to the financial obligation or debts of a business

A

Liabilities

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7
Q

This refers to the owner’s claims of the assets of a business

A

Stockholder’s Equity

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8
Q

It is a point in time once a year

A

Stock

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9
Q

It is during an accounting period during the year

A

Flow

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10
Q

What are the components in a flow sheet?

A

Income (sales)
Expenditures (Purchases/Costs)
Profit/Loss After Tax

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11
Q

It is a measure of the products produced, the services provided and expressed in kind

A

Yield

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12
Q

What are the three classification of the products?

A

main, twin, by-products

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13
Q

Prices can be _____, _______, or _______

A

open market, protective, cost-originated

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14
Q

What are the three classification of protective prices?

A

official, bottom-up, top-protected

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15
Q

Give an example of a product main, twin and by-products.

A

Milk (main)
Calf (twin)
Animal Manures (by-products)

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16
Q

It is a price for all customers.

A

Fixed prices

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17
Q

Where can you price obtained by bargaining?

A

Open Market

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18
Q

What are the two characteristics of a fixed prices?

A

a) price fixed by international agreement or by a governmental price-fixing agency
b) price established by a contract and not subject to subsequent change

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19
Q

It is the price at which national intervention agencies in the EU are obliged to purchase any amount of a commodity offered to them regardless of the level of marketing prices

A

Intervention Price

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20
Q

It is the floor for market prices

A

Intervention Price

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21
Q

______ purchases have constituted one of the principal policy mechanisms regulating EU markets in sugar, cereal grains, butter and skimmed milk powder and beef

A

Intervention

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22
Q

It is a government regulation within a period of time

A

Maximum Consumer Price

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23
Q

In this modified price approach, businesses have the chance to sell less than the maximum price

A

Maximum Consumer Price

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24
Q

True or False

If you have a fixed maximum retail price, you can sell a product more than the maximum retail price

25
What is the formula for the calculation of a production value or revenue?
Production Value (PV) Revenue (R) = Yield x Price / Unit + Other
26
It is the monetary value of the goods and services produced (usually for one year)
Yield/Service Value
27
The amount of money received for the main service or product sold
Sales Revenue
28
What are possible other factors in the elements of production or service value?
direct subsidy and other revenues
29
What are the three elements of production or service value?
a) yield or service value b) sales revenue c) other factors
30
It is the revenue from the sale of main, twin and by-products
Sales Revenue
31
In the presence of the sector (such as arable land or livestock, the producer (tenant) receives
Direct Subsidy
32
What are some examples of other revenues?
Income from insurance reimbursement | Revenues received after partner or affiliated companies
33
What are the four elements of a production or service value of a business?
Sales Revenue Direct Subsidy Other Revenues Products or Services Produced but not sold
34
How can you increase the production value?
a) increase yields b) achieving higher prices c) use other revenues
35
How can you increase yield?
a) the quality and quantity of input materials b) the technological level of production service c) optimal level of expenses d) improve the work organization e) human factors such as knowledge or experience f) reduce other expenses
36
How can you achieve higher prices?
a) demand supply b) nature of product c) quality d) uniformity e) time of sale f) sales volume g) palce of sale
37
How can you use other revenues to increase production value?
a) support or subsidy b) insurance compensation c) revenue from associates
38
What is the production cost formula?
Production Cost = (Expenditure x Unit Price) + Other
39
It is the amount of resources used for production and services, expressed in natural units
Expenditure
40
It is the monetary value of the expenditures used for production and services
Production Cost
41
What comprises expenditure?
a) used materials b) workforce used c) services used d) depreciation used e) other
42
What are examples of content cost without expenditures?
various taxes, insurance fees, membership fees, interest rates, rent
43
What are the two response to output terms?
variable and fixed
44
It does not respond to the output
Fixed Cost
45
It responds to the output
Variable Cost
46
True or False | All companies have fixed cost
True
47
What are some examples of fixed cost?
a) cost without expenditures b) depreciation cost c) overheads depreciation cost d) proportion of repairs and maintenance e) administrative cost, other general f) personnel cost for permanent staff
48
What are some examples of variable costs?
a) material cost b) personnel cost (non-permanent) c) outside service cost d) other direct (variable) cost
49
It is only constant up to a maximum capacity.
Fixed Cost
50
The fixed cost increases by a step so it is customary to call it a __________ variable cost
step-by-step
51
Fixed cost is also termed as ______
step-by-step variable cost
52
They are related to the quantity of a product produced.
Variable Cost
53
They change as they change in relation to the quantity of goods traded
Variable Cost
54
They do not occur when production is suspended
Variable Cost
55
In this case, the cost varies above the percentage of the increase in output
Progressive Variable Cost
56
True or False | The fixed cost does not become variable
False
57
True or False | Total costs decrease as capacity is utilized
True
58
What is one grouping of production cost discussed in the lesson?
Grouping according to the relationship of volume of production or service
59
True or False | The variable cost will be constant or fixed
True

Introduction to Business (3 decks)

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