Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

ACCT 2121 > Final Exam > Flashcards

Final Exam Flashcards

(62 cards)

Start Studying
1
Q

Contribution Margin

A

Revenue - Variable Costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Contribution Margin Ratio

A

Revenue- Variable Costs/ Revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Variable Costs

A

-Rise as you make more
-Cost that changes in total as activity level flunctuates but remains constant on a per unit basis
-Raw materials
-Hourly wages
-Shipping charges
-Advertising
-No operating leverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Fixed Costs

A

-Stays the same
-Cost that remains constant in total as the activity level flunctuates but changes on a per unit basis
-Must be paid no matter how much you sale
-Rent
-Insurance
-Weekly pay
-Equipment
-Operating leverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Break Even Point

A

Fixed Cost/ Contribution Margin per Unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Desired Profit

A

Fixed Cost+Profit/Contribution Margin Per Unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Break Even Point Definition

A

Break even point allows managers to determine the sales volume required to earn a desired profit (loss zero profit)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Target Net Income (Managerial)

A

Rev - Variable cost = CM - fixed cost = NI

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Target Net Income (Financial)

A

Rev - COGS = GM - SG&A Expense = NI

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

SG&A Expense (period cost)

A

Selling, general, administrative
-non production expenses incurred
-rent
-utilities
-legal fees
-insurance
-advertising
-marketing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

COGS

A

Product cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Margin of Safety

A

Budgeted Sales - Break Even Sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Margin of safety ratio

A

budgeted sales - break even sales / budgeted sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Margin of Safety Definition

A

Measures the cushion between budgeted sales and the break even point. Quantifies the amount by which actual sales can fall short of expectations before the company will begin to incur losses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Cost of goods sold (Merchandiser)

A

Beg Inv + Cost of goods purchased - Ending Inv

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Cost of goods sold (Manufacturer)

A

Beg finished goods inv + Cost of goods manufactured - ending finished goods inv

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Cost of Goods Manufactured

A

Beg WIP Inv + Total manufacturing costs - Ending WIP inv

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Total cost of WIP

A

Beg WIP inv + Total manufacturing costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Total Manufacturing Costs

A

DM + DL + MOH

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Manufacturers Inventory

A

Raw materials + WIP + Finished Goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Managerial Accounting Basis

A

Provides economic and financial info for managers and other internal users

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Managerial & Financial Similarities

A

-Deal with economic events of a business aka business transactions
-Economic events quantified and communicated to interested parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Financial

A

-External : stockholders, creditors and regulators
-Financial reporting: quarterly & annually
-General purpose
-Pertains to business as a whole, highly aggregated (condensed), limited to accrual acct and cost data, GAAP, audited by CPA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Managerial

A

-Internal : officers & managers
-Internal reports: as frequently as needed
-Special purpose for specific decisions
-Pertains to subunits of a business, very detailed, extends beyond accrual acct to any relevant data
-Evaluated based on relevance to decisions
-No independent audits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Just in Time (JIT) inventory
-system in which goods are manufactured or purchased just in time for sale -companies receive the exact amount of inventory they need, right when they need it -goal is for companies to retain little to no excess inventory at any given time.
26
Time Quality Management (TQM)
Reduce defects in finished products with goal of zero defects
27
Theory of Constraints ("bottlenecks")
-Constraints limit companies potential profitability -Allows management to identify & eliminate constraints in order to achieve company goals
28
Enterprise Resource Planning (ERP)
Software programs designed to manage all major business processes
29
Activity Based Costing (ABC)
-Allocates overhead based on use of activities -Results in more accurate product costing & scrutiny of all activities in value chain
30
Balance Scoreboard
-Evaluates operations in an integrated fashion -Uses both financial & non financial measures, often expressed as "key performance indicators" KPI's -Links performance to overall company objectives
31
Depreciable basis
HC - SV
32
Annual Depreciation Expense
Depreciable basis/ useful life
33
Product Costs
-costs that are an integral part of producing a product -recorded in inventory account -not an expense (COGS) until goods are sold -components: DM, DL, MOH
34
Period Costs
-charged to expense as incurred -non manufacturing costs -includes all selling, general, & administrative expenses (SG&A) -unrelated to making products
35
MOH
-indirect materials -indirect labor -other indirect costs
36
Periodic Inventory system
-under the periodic inventory system the income statements of a merchandiser & a manufacturer differ in the cost of goods sold section
37
Environmental
-renewable fuels -greenhouse gas emissions -energy efficiency -climate risk -water management -recycling processes -emergency prepardness
38
Social
-health & safety -working conditions -employee benefits -diversity & inclusion -human rights -impact on local communities
39
Goverance
-ethical standards -board diversity & governance -stakeholder engagement -shareholder rights -pay for performance
40
Total variable costs
solve for x
41
Total fixed costs
stays the same its a fixed cost
42
Variable costs per unit
stays the same
43
Fixed costs per unit
solve for x
44
Rental cost per unit
rent expense/ # of units produced
45
Utilities cost per unit
utilities expense/ # of units produced
46
4 primary financial statements and order prepared
-Income statement -Statement of RE; shareholders equity -Balance sheet -Statement of cashflows
47
Net income
revenue - expenses
48
Statement of RE
beg re + NI - dividends
49
Operating
-income statement items -revenues -expenses -current asset; cash -current liability
50
Investing
-long term asset -investments; land & buildings
51
Financing
-long term liability -shareholders equity; loans \/ -common stock & retained earnings\/ -revenues & expenses -dividends
52
Accounting Equation
Assets + liabilities + stockholders equity
53
On account
-accts payable or accts receivable
54
accounts payable
-represents money that your business owes to suppliers -current liability
55
accounts receivable
-represents money owed to your business by customers -current asset
56
Big 4
-KPMG -PricewaterhouseCoopers -Deloitte -Ernst & Young
57
Enron scandal
-Fraudulent accounting practices (revenue recognition, mark-to-market accounting, special purpose entities) -Ken Lay; founder and CEO -Jeff Skilling; CEO during scandal -collapsed in 2001
58
Sarbanes-Oxley (SOX) Act of 2002
-“Corporate responsibility” -made it harder for corporations to commit unethical behavior, publicly-traded companies have been subject to the “integrated audit” since 2002. -Senator; paul sarbanes -rep; mike oxley
59
Accounting rules (US)
-Generally Accepted Accounting Principles (GAAP) -Financial Accounting Standards Board (FASB) continually monitors and updates US GAAP -Securities and Exchange Commission (SEC) is the entity to which publicly- traded companies submit their quarterly and annual financial statements on the Forms 10-Q and 10-K, respectively
60
Accounting rules (international)
-International Financial Reporting Standards (IFRS) -International Accounting Standards Board (IASB) continually monitors and updates IFRS
61
SOX compliance required for
-Publicly-traded companies in the U.S. and their subsidiaries -Foreign companies that are publicly traded and do business in the U.S. -Private companies planning their Initial Public Offering (IPO) to become a publicly traded company -Accounting firms performing audits of the above SOX-regulated companies
62

ACCT 2121 (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions