CH14: Managerial Acct Flashcards
(37 cards)
Mangerial accting
provides financial and non financial info to a businessess managers
The purpose of managerial acctg
-determining costs of an orgs products/services
-planning for future activites
-comparing actual results to planned results
planning vs controlling
-process of setting foals and making plans to achieve them
-process of monitoring/evaluating an businesses activities and employees
what is the cost object
product to which costs are assigned
what are direct costs and what does it consist of
costs that can be traced to a cost object (consists of direct mats and labor)
direct materials & labor
-material directly needed for items
-labor and salary of ppl directly involved int he production of the product
indirect costs
costs that cant be traced to a cost object (consiststs of indirect mats, indirect labor, and factory overhead)
what is factory overhead
manufacturing costs that are not traced to a cosr object (anything to do with factory)
what does factory overhead include
-indirect mats
-indirect labor
-other utilities (deprecitation, gas)
indirect materials
materials that are not used for product production ORRR that can be used for smth other than product
-ex screws, needles, ink
indirect labor
labor that cannot be traced
ex: supervisor salary
prime costs
direct material + direct labor
conversion costs
Direct labor + factory overhead
what does product costs consist of
-direct mats
-direct labor
-factory overhead
period costs
-selling expenses
-general expenses
selling expense examples
-advertising
-sales commissions
-etc
manufacturer vs merchandiser
-purchases materials and converts it to products
-buys and sells the goods
what inventories does a manufacturing company report
-raw material
-work in process
-finished goods
what inventories does a merchandising company report
-merchandise inventory
how to find cost of goods sold for a merchaniser
beginning merchandise + merchandise purchased - ending merchandise
how to find cost of goods sold for a manufacturer
beginning finished goods + cost of goods manufactured - ending finished goods
income statement basic
sales
cost of goods sold
-inventory beginning
-cost of goods merch/manufact
-goods available
-ending inventory
cost of goods solds
gross profit
expenses
net income/loss
how to find gross profit
sales- cost of goods sold
general and administrative expenses
expenses for manager salaries, office equipment etc
