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22 Cards in this Set
- Front
- Back
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Accrual Accounting |
revenues when earned expenses when incurred (depreciation and payables included) |
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cash basis accounting |
revenues when received in cash expenses when paid |
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depreciation calculation |
cost - salvage --------------------- estimated life |
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management strategies |
customer intimacy operational excellence product leadership |
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Value Chain |
research->product design->manufacturing ->marketing->distribution->customer service |
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theory of constraints |
we cant achieve all goals due to operational constraints that we must work to find and solve |
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six sigma |
process improvement method that relies on customer feedback and data analysis to drive improvement |
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DMAIC |
Define, Measure, Analyze, Improve, and Control |
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Sarbanes-Oxley Act of 2002 |
response to financial scandals of the 1990s. >CEO certifies statements are fair >Public companies accounting oversight board (PCAOB) >Audit committees of the board are established >Restrictions on nonaudit work by audit firms are imposed >Internal control reports required |
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Corporate Social Responsibility |
stakeholders interests are considered. this includes customers, employees, suppliers, and communities |
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Product Costs |
Costs related to the direct materials and any manufacturing of the finished goods
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Period Costs |
Selling expenses and administrative expenses that are recognized as expenses on the balance sheet |
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manufacturing costs |
DM + DL+ OH |
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Cost of goods manufactured |
Beggining w/p inventory +DM used +Direct labor +manufacturing OH -ending w/p inventory |
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cost of goods sold |
beggining f/g inventory +cost of goods manufactured -ending f/g inventory |
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Inventories shown on BS |
direct materials work in process finished goods |
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net operating income |
sales - cost of goods sold =(gross margin) -operating expenses |
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variable costs |
increase as activity level increases, stays constant per unit |
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fixed costs |
stay constant, decrease per unit with increased activity |
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direct/indirect costs |
whether or not the cost is easily traced to a cost object |
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relevant vs irrelevant |
incremental, differential vs sunk, future |
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prime cost vs conversion cost |
prime = DM + DL conversion = DL + OH |
