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26 Cards in this Set

  • Front
  • Back
Managerial Vs Finacial
*produc objective & verifiable info
*focual on overall performance w. aggregate veiwpoint
*Sce & Fasb

* internal
finacial and non finacial
provide measure and internal reports to eveluate proformance and to provide viewpoint, Broad
*future and historial
*mangers pick info they want as long justified on cost-beenfit basis
value chain
the set of activities required to design, develop, produce, market, and deliver product and services to customers
certified management accountant
a certified management accoutnant has passed a rigorous qualifying examination, met an experience requirement, and participates in continuing education
prime cost
the sum of direct materials cost and direct labor cost
conversion cost
the sum of direct labor cost and overhaed cost
work in process
the cost of the partically completed goods that are still being worked on at the end of a time period
gross margin
the difference between sales revenue and cost of goods sold
committed fixed costs
a fixed cost that cannot be easily changed
discretionary fixed costs
fixed costs the can be changed relatively easily at management discretion
variable cost ratio
variable costs divided be sales revenue. it is the proportion of each sales dollar needed to cover variable costs
operating leverage
the use of fixed coststp extract igher percentage changes in profits as sales activity changes. leverage is achieved by increasing fixed costs while lowering variable costs
common fixed expenses
fixed expenses that cannot be directly traced to individual segments and that are unaffected by the elimination of any one segment
direct fixed expenses
fixed costs that are directly traceble to a given segment and conseuently, disappear if the segment is eliminated
job-order cost sheet
a subsidiary account to the work-in-process account on which the total costs of materials, labor, and overhead for a single job are accumulated
materials requistions form
a source document that records the type, quantity, and unit price of the direct materials issued to each job
equivalent units of output
complete units that could have been produced given the total amount of manufacturing effort expended during the period
parallel processing
a processing pattern in which two or more sequential processes are required to produce a finished good
sequential (or step) method
a method that allocates service costs to user departments in a sequential manner. it giver partial consideration to interactions among support departments
physical flow scheledule
a scheledule that reconciles units to account for with unit accounted for. physical units are not adjusted for percent of completion
transferred-in costs
costs transferred from one division to another
product diversity
the situation present when products consume overhead in different proportions
consumption ratio
the proportion of an overhead activity consumed by a product
activity dictionary
a list of activities described by specific attributes such as name, definition, classification as primary or secondary, and activity driver
activity based costing
a cost assignment approach that first uses direct and driver tracing to assigncosts to activities and then uses drivers to assign costs to cost objects
value-added activities
activites that are necessary for a business to achieve coporate objectives and remain in business
non-value-added activities
all activities other than those that are absolutely essential to remain in business