Planning, Control, & Analysis (M47) Flashcards Preview

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Flashcards in Planning, Control, & Analysis (M47) Deck (73)
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1

At the breakeven point, the contribution margin equals total...

Fixed Costs

2

The most likely strategy to reduce the breakeven point, would be to...

Decrease the Fixed Costs (Numerator) & Increase the Contribution Margin (Denominator)

3

This is a budgeting approach that focuses on the cost of activities required to produce and sell products. It is an extension of activity-based costing

Activity based budgeting

4

These are costs that will not continue to be incurred if the department or product is terminated

Avoidable costs

5

This requires the products, services, and I activities be continually measured against the best levels of performance either inside or outside the organization

benchmarking

6

This is a quantification of the plan for operations

Budget

7

This is a budget that is adjusted for changes in volume

A flexible budget

8

These are reports that are comparing budgeted an actual performance

Performance reports

9

This is the practice of underestimating revenues and overestimating expenses to make budget targets more easily achievable

Budgetary slack

10

These costs arise from a company's basic commitment to open its doors and engage in business

Committed costs

11

This equals revenue less all variable costs

Contribution margin

12

This can be affected by manager during the current period.

Controllable costs

13

These costs cannot be affected by the individual in question

Uncontrollable costs

14

This refers to the approaches and activities used by management to make planning and control decisions for the firm

Cost management

15

This is a planning tool used to analyze the effects of changes in volume, sales mix, selling price, variable expense, fixed expense, and profit

Cost volume profit analysis

16

This is the difference in cost between two alternatives

Differential or incremental cost

17

These are fixed costs who's level is set by current management decisions

Discretionary costs

18

This supports the financial planning process by making it easier to construct projected financial scenarios. These models incorporate the interrelationships among operating activities, financial activities, and other factors that affect the business, and range from simple models to those that incorporate hundreds of equations

Financial planning models

19

The cash budget, the capital budget, the budgeted balance sheet, and the budgeted statement of cash flow's are all examples of this

Financial budgets

20

These costs are not very with the level of activity within the relevant range for a given period of time

Fixed costs

21

This involves developing budgets that require only justification for increases in the funding over the prior period

Incremental budgeting

22

This involves estimating the revenues and costs attributable to each product from initial research and development to its final customer and support

Lifecycle budgeting

23

This focuses attention on material deviations from plans while allowing areas operating as expected to continue to operate without interference

Management by exception

24

This is a comprehensive expression of managements operating in financial plans for a future period that is summarized as budgeted financial statements. It consists of the operating and financial budgets

Master budget

25

These costs have a fix component and a variable component. They are separated by using the scattergraph, high-low, or linear regression methods

Mixed or semi-variable costs

26

This model estimates the relationship between independent variable and two or more independent variables. It may be used to develop sales forecasts

Multiple regression

27

This is the budgeted income statement and related schedules

Operating budget

28

This is the maximum income or savings benefit for gone by rejecting an alternative

Opportunity cost

29

This is the cash disbursement associated with a specific project

Outlay or out-of-pocket costs

30

This involves selecting goals and choosing methods to attain those goals

Planning