Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
20 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
Accounting System |
A formal mechanism for gathering, organizing and communicating information about organization’s activities. |
Mechanism |
|
|
Activity Based Accounting |
A system that first accumulates overhead cost for each of the activities of an organization and then assigns the cost of activities to the products, services or other cost objects that caused that activity, this is often called transaction based costing. |
First Accumulates Overhead |
|
|
Attention Directing |
Reporting and interpreting of information that helps managers to focus on operating problems, imperfections, inefficiencies and opportunities |
Helps managers to focus |
|
|
Avoidable costs |
Costs that will not continue if an ongoing operation is changed or deleted |
Will not continue if |
|
|
Break even analysis |
The study of cost volume profit relationships |
Volume |
|
|
Budget |
A quantitative expression of a plan of action as an aid to coordinating and implementing the plan |
Quantitative expression |
|
|
Cost center |
A responsibility center for which the objective is to manage (minimize) cost efficiency |
Objective to minimize |
|
|
Cost pool |
A group of individual costs that is allocated to cost objectives using a single cost driver |
Using a single cost driver |
|
|
Contribution margin |
The sale price minus all variable expenses |
Minus variable expenses |
|
|
Conversion costs |
Direct labour costs plus overhead costs |
plus overhead costs |
|
|
Decision model |
Any method for making a choice, sometimes requiring elaborate quantitative procedures |
Any method for making |
|
|
Factory overhead |
All costs other than direct material or direct labour that are associated with the manufacturing process |
Other than direct or indirect labour |
|
|
Financial Accounting |
The field of accounting that serves external decision makers such as shareholders, suppliers, banks and government regulatory agencies |
Serves external decision makers |
|
|
Problem solving |
Aspect of accounting that quantifies the likely results of possible courses of action and often recommends the best course of action to follow |
|
|
|
Relevant costs |
The predicted future costs and revenues that will differ among alternative course of action |
Predicted future costs |
|
|
Responsibility accounting |
Identifying what parts of the organization have primary responsibility for each objective, developing measures of achievement of the objectives, and creating reports of these measures by organization subunit or responsibility center |
Identifying |
|
|
Responsibility center |
A set of activities assigned to a manager, a group of managers or group of employees in order to create “Ownership of management ” decisions. |
Set of activities |
|
|
Scorekeeping |
Accumulation and classification of data |
|
|
|
Staff Authority |
Authority to advise but not to command. It may be exerted downward, laterally or upward |
|
|
|
Value added costs |
The necessary cost of an activity that can not be eliminated without affecting a product’s value to the customer |
|
