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50 Cards in this Set
- Front
- Back
Know the three inventory accounts used by a manufacturer.
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raw materials
work in process finished goods |
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Review the differences between Financial and Managerial accounting.
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Managerial accting is concerned with providing info to managers- people inside op with control in its operations. Financial acct provides info to stockholders, credits, others outside of organization.
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Know and be able to define the three major activities of a manager.
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planning
directing and motivating controlling |
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administrative cost
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all executive, organizational and clerical costs associated with the general management of an organization rather than with manufacturing or selling
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budget
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a detailed plan for the future, usually expressed in formal quantitative terms
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common cost
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a cost that is incurred to support a number of cost objects but that cannot be traced to them individually
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control
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the process of instituting procedures and then obtaining feedback to ensure that all parts of the organization are functioning effectively and moving toward overall company goals
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controller
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the member of the top management team who is responsible for providing relevant and timely data to managers and for preparing financial statements for external users. The controller reports to the CFO
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controlling
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actions taken to help ensure that the plan is being followed and is appropriately modified as circumstances change
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conversion cost
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direct labor cost plus manufacturing overhead cost
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cost behavior
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the way in which a cost reacts to changes in the levle of activity
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cost object (and examples)
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anything for which cost data are desired (products, customers, jobs, departments, divisions)
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cost of goods manufactured
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the manufacturing costs associated with the goods that were finished during the period
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differential cost
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a difference in cost between two alternatives (same as incremental cost)
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differential revenue
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tthe difference in revenue between two alternatives
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direct cost
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a cost that can be easily and conveniently traced to a specified cost object
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directing and motivating
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mobilizing people to carry out plans and run routine operations
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direct labor
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factory labor costs that can be easily traved to individual units of product (same as touch labor)
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direct materials
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materials that become an integral part of a finished product and whose cost can be conveniently traced to it
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feedback
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accounting and other reports that help managers monitor performance and focus on problems and/or opportunities that might otherwise go unnoticed
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financial accounting
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the phase of accounting concerned with providing information to stockholders, creditors, and others outside of the organization
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finished goods
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units of product that have been completed but not yet sold to custonmers
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fixed cost
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a cost that remains contant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity
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incremental cost
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an increase in cost between to alternatives (same as differential cost)
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indirect cost
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a cost that cannot be easily and conveniently traved to a specified cost object
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indirect labor
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the labor costs of janitors, material handlers, and other factory workers that cannot be conveniently traced to particular products
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indirect materials
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small items of material such as glue and nails that may be an integral part of a finished product, but whose costs cannot be easily of conveniently traced to it
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inventoriable costs
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same as product cost
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managerial accounting
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the phase of accounting concerned with providing information to managers for use within the organization
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manufacturing overhead
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all manufacturing costs except direct materials and direct labor
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opportunity cost
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the potential benefit that is given up when one alternative is selected over another
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performance report
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a detailed report comparing budgeted data to actual data
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period costs
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costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued
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planning
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selecting a course of action and specifying how the action will be implemented
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planning and control cycle
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the flow of management activities through planning, directing and motivating, and controlling, and then back to planning again
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prime cost
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direct materials cost plus direct labor cost
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product costs
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all costs that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead (same as inventoriable costs)
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raw materials
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any materials that go into the final product
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relevant range
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the range of activity within which assumptions about variable and fixed cost behavior are valid
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schedule of cost of goods manufactured
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a schedule showing the direct materials, direct labor, and manufacturing overhead costs incurred during a period and porrtion of those costs are assigned to Work in Process an Finished Goods
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segment (examples)
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any part of an organization that can be evaluated independently of other parts and about which the manager seeks financial data. (product line, sales territory, division, department)
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selling costs
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all costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer
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sunk cost
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a cost that has already been incurred and that cannot be changed by any decision made not or in the future
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variable cost
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a cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is constant per unit
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work in process
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units of product that are only partially complete
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A position that is directly related to achieving the basic objectives of an organization is called a __________ position.
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line
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A diagram that shows how responsibility is divided among mgrs and shows formal lines of reporting and communication is called an __________
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organization chart
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A __________ position provides service or assistance to other parts of the organization and doesn't directly achieve basic obj. of the org.
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staff
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The mgr in charge of accounting department is usually the __________
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controller
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The __________ is the member on top mgmt team who is responsible for providing timely relevent data to support planning/control activities and for preparing fin statements for external users
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CFO
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