Chapter 1: Managerial Accounting Flashcards
(28 cards)
Activity-Based Costing (ABC)
A method of allocating overhead based on each product’s use of activities in making the product.
Balanced Scorecard
A performance-measurement approach that uses both financial and non financial measures, tied to the company objectives, to evaluate a company’s operations in an integrated fashion.
Board of Directors
The group of officials elected by the stockholders of a corporation to formulate operating policies, select officers, and otherwise manage the company.
Chief Executive Officer (CEO)
Corporate officer who has overall responsibility for managing the business and delegates responsibilities to other corporate officers.
Chief Financial Officer (CFO)
Corporate officer who is responsible for all of the accounting and finance issues of the company.
Controller
Responsible for a company’s accounting records, system of internal control, and preparation of financial statements, tax returns, and internal reports.
Corporate Social Responsibility
The efforts of a company to employ sustainable business practices with regard to its employees and the environment.
Cost of Goods Manufactured
Total cost of work in process less the cost of the ending work in process inventory.
Direct Labor
The work of factory EE that can be physically and directly associated with converting raw materials into finished goods.
Direct Materials
Raw materials that can be physically and directly associated with manufacturing the finished product.
Enterprise Resource Planning System (ERP)
Software that provides a comprehensive, centralized, integrated source of info used to manage all major business processes.
Indirect Labor
Work of factory EE that has no physical association with the finished product, or for which it is impractical to trace the costs to the goods produced.
Indirect Materials
Raw Materials that don’t physically become part or the finished product of for which it is impractical to trace to the finished product b/c their physical association with the finished product is too small.
Just-In Time Inventory
Inventory System where good are manufactured or purchased just in time for sale.
Line Positions
Jobs that are directly involved in a company’s primary revenue-generating operating activities.
Managerial Accounting
A field of accounting that provides economic and financial info for managers and other internal users.
Manufacturing Overhead
Manufacturing costs that are indirectly associated with the manufacture of the finished product.
Period Costs
Cost that are matched with the revenue of a specific time period and charges to expense as incurred.
Product Costs
Costs that are a necessary and integral part of producing the finished product.
SOX
Law passed intended to reduce unethical corporate behavior.
Staff Positions
Jobs that support the efforts of line employees.
Theory of Constraints
A specific approach used to identify and manage constraints in order to achieve the company’s goal.
Total Cost of Work in Process
Cost of the beginning work in process plus total manufacturing costs for the current period.
Total Manufacturing Costs
The sum of direct materials, direct labor, and manufacturing overhead incurred in the current period.
