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Managerial Accounting > EVERY MANAGERIAL ACCOUNTING CHAPTER > Flashcards

EVERY MANAGERIAL ACCOUNTING CHAPTER Flashcards

[Note: Stopped at page 25 in the book ] (79 cards)

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1
Q

What is an Activity Base?

A

A measure of what causes a variable cost

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2
Q

What are Administrative Costs?

A

Costs associated with the general management of an organization

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3
Q

What are committed fixed costs?

A

Investments in facilities, equipment, and structure that can’t be reduced w/o significant change

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4
Q

What is a Common Cost?

A

costs that cannot be traced to a individual cost object

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5
Q

What is the Contribution approach?

A

An income statement format organizing costs by behavior.

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6
Q

What is a Contribution Margin?

A

How much remains from sales revenue after all variable expenses are deducted

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7
Q

What is the Conversion Cost Formula?

A

Direct labor + Manufacturing Overhead

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8
Q

What is cost behavior?

A

How costs react to changes in activity levels

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9
Q

What is a cost object?

A

Anything for which cost data is desired.

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10
Q

What are cost structures?

A

The proportion of fixed, variable and mixed costs in an organization

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11
Q

What is a differential cost?

A

costs that differ between two alternatives

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12
Q

What is differential revenue?

A

revenue that differs between alternative goods

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13
Q

What are direct costs?

A

costs that can be traced back to a specific cost object

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14
Q

What is direct labor?

A

factory labor costs related to a specific products creation

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15
Q

What are direct materials?

A

materials that become a part of a finished product; can be traced

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16
Q

Discretionary fixed costs are..

A

costs that come from advertising and research decisions

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17
Q

What is Financial Accounting?

A

Accounting that reports financial history to stockholders, creditors, and regulators.

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18
Q

What are finished goods?

A

products that have not been sold

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19
Q

What is a fixed cost?

A

constant costs that do not change with the level of activity

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20
Q

What is a Incremental cost?

A

a increase in cost between two alternative goods

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21
Q

What is a Indirect cost?

A

a cost that is difficult to trace back to a cost object

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22
Q

What is indirect labor?

A

the labor cost of janitors, supervisors, material handler, and other factory workers

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23
Q

What are indirect materials?

A

materials such as glue and nails that cannot be easily traced

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24
Q

What is managerial accounting?

A

accounting that provides information to managers

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25
What is manufacturing overhead?
manufacturing costs outside of direct materials and labor
26
What is a mixed cost?
costs with both variable and fixed cost elements
27
What is an opportunity cost?
benefits given up for something else
28
What is a period cost?
cost taken directly to the income statement as expenses
29
What is the prime cost formula?
direct materials + direct labor
30
What are product costs?
costs involved in making a good
31
What are raw materials?
materials that go into making a good
32
What is a relevant benefit?
a benefit that should be considered when making a decision
33
What is a relevant cost?
cost that should be considered when making a decision
34
What is a relevant range?
the range of activity within which assumptions about variable and fixed cost behavior are valid
35
What are selling costs?
cost incurred to secure orders and send out a good
36
What is a sunk cost?
cost that cannot be changed by any decision
37
What is a variable cost?
a constant per unit cost, that changes in proportion to activity levels
38
What is a work in process?
partially complete units of product
39
What is absorption costing?
a costing method that includes all manufacturing costs in unit product costs
40
What is a bill of materials?
a document detailing how much material is needed to manufacture a product
41
What is a cost driver?
factors that cause overhead costs
42
What is an example of a cost driver?
machine-hours, flight-hours, and computer time
43
What is cost-plus pricing?
a pricing method where a predetermined price markup is applied to a cost base in order to determine the target selling price
44
What is a job cost sheet?
a document recording the direct materials, direct labor, and manufacturing overhead
45
What is Job-order costing?
a system used when several different goods are produced each period
46
What is the multiple predetermined overhead rate?
a system with multiple overhead cost pools that have a different overhead rate each
47
What is a normal cost system?
a system that applies overhead cost to jobs by multiplying a predetermined overhead rate by actual amount of allocation base
48
What is overhead application?
assigning overhead to a job
49
What is a plantwide overhead rate?
a single overhead rate used through a plant
50
What is the predetermined overhead rate?
a rate used to charge overhead to a job in advance
51
What is a time ticket?
a document recording how much time a employee spends on a task
52
What is a schedule of cost of goods manufactured?
A schedule summarizing the portion of product cost remaining in WIP and sent out to finished goods
53
What is a schedule cost of goods sold?
A schedule summarizing the portions of costs remaining in ending finished goods and transferred out to cost of goods sold
54
What is under-applied overhead?
occurs when overhead applied to WIP is less than the overhead actually incurred
55
What are equivalent units?
the number of complete units that could be obtained from the materials and labor in partially completed units
56
What are equivalent units of production?
units transferred to the next department (or finished goods) during the period + equivalent units in the department's ending WIP inventory
57
What is the FIFO method?
A process costing method that calculates unit costs based solely on the costs and outputs from the current period
58
What is operation costing?
a hybrid costing system used when products have some common and some individual characteristics
59
What is process costing?
a costing method used when homogeneous products are produced on a continuous basis
60
What is the processing department?
where work is performed on a product
61
What is the weighted-average method?
a process costing method that calculates unit costs by combining costs and outputs from past a present periods
62
What is the Break-even point?
the level of sales where profit is zero
63
What is a contribution approach?
An income statement separating costs int variable and fixed categories
64
What is the contribution margin ratio?
contribution margin / sales
65
What is the cost-volume-profit graph?
a graph representing the relationships between an organization's revenues, costs, profits, and its sales volume.
66
What is the degree of operating leverage?
a measure of how a percent change in sales volume affects profits
67
What is incremental analysis?
analysis focusing changes in cost and revenues caused by a decision
68
What is the margin of safety?
excess sales over the break-even dollar sales
69
What is operating leverage?
A measure of how sensitive net operating income with a percentage change in unit sales
70
What is the sales mix?
the proportion in which a company's products are sold
71
What is target profit analysis?
an estimate of the level of sales needed to achieve a desired target profit
72
What is the variable expense ration formula?
variable expenses / sales
73
How are costs classified?
Either as direct or indirect
74
Examples of manufacturing overhead includes..
equipment depreciation, utility costs, property taxes, and insurance premiums
75
What are other names for manufacturing overhead?
indirect manufacturing cost, factory overhead, factory burden
76
What are other names for selling costs?
ordergetting, or order-filling costs
77
Examples of selling costs
Advertising, shipping, sales travel, commissions, sales salaries, and warehouses
78
Examples of administrative costs?
general accounting, legal counsel, public relations, and secretarial costs
79

Managerial Accounting (5 decks)

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