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62 Cards in this Set

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Enterprise Resource Planning (ERP) System
Software that provides a comprehensive, centralized, integrated source of information used to manage all major business processes.
Indirect Labor
Work of factory employees that has no physical association with the finished product, or for which it is impractical to trace the costs to the goods produced.
Indirect Materials
Raw materials that do not physically become part of the finished product or cannot be traced because their physical association with the finished product is too small.
Just-in-Time (JIT) Inventory
Inventory system in which goods are manufactured or purchased just in time for use.
Line Positions
Jobs that are directly involved in a company’s primary revenue-generating operating activities.
Activity-Based Costing
A method of allocating overhead based on each product’s use of activities in making the product.
Balanced Scorecard
A performance-measurement approach that uses both financial and non-financial measures, tied to company objectives, to evaluate a company’s operations in an integrated fashion.
Managerial Accounting
A field of accounting that provides economic and financial information for managers and other internal users.
Board of Directors
The group of officials elected by the stockholders of a corporation to formulate operating policies, select officers, and otherwise manage the company.
Chief Executive Officer (CEO)
Corporate officer who has overall responsibility for managing the business and delegates that responsibility to other corporate officers.
Manufacturing Overhead
Manufacturing costs that are indirectly associated with the manufacture of the finished product.
Chief Financial Officer (CFO)
Corporate officer who is responsible for all of the accounting and finance issues of the company.
Controller
Financial officer responsible for a company’s accounting records, system of internal control, and preparation of financial statements, tax returns, and internal reports.
Direct Materials
Raw materials that can be physically and directly associated with manufacturing the finished product.
Period Costs
Costs that are matched with the revenue of a specific time period and charged to expense as incurred.
Total cost of work in process - cost of the ending work in process inventory
Cost of Goods Manufactured
None
Direct Labor
The work of factory employees that can be physically and directly associated with converting raw materials into finished goods.
Product Costs
Costs that are necessary and integral part of producing the finished product.
Staff Positions
Jobs that support the efforts of line employees.
Theory of Constraints
A specific approach used to identify and manage constraints in order to achieve the company’s goals.
Cost of the beginning work in process + total manufacturing costs
Total Cost of Work in Process
None
Direct materials + direct labor + overhead
Total Manufacturing Costs
None
Total Quality Management (TQM)
Systems implemented to reduce defects in finished products with the goal of achieving zero defects.
Treasurer
Financial officer responsible for custody of a company’s funds and for maintaining its cash position.
Value Chain
All activities associated with providing a product or service
Beginning Work in Process + Direct Materials + Direct Labor + Manufactured Overhead - Ending Work in Process
Cost of Goods Sold (Formula)
None
Product: Manufacturing Costs
Direct Materials
Direct Labor
Overhead (Indirect Materials, Indirect Labor, other indirect costs)

Period Costs:
Nonmanufacturing Costs
Expenses
Product Costs vs. Period Costs
None
Raw Materials Inventory (Debit)
Accounts Payable (Credit)
Raw Materials Costs Journal Entry
None
Factory Labor (Debit)
Factory Wages Payable (Credit)
Factory Labor Costs (Journal Entry)
None
Overhead (Debit)
Overhead Costs (Credit)
Overhead Journal Entry
None
Work in Process Inventory (Debit)
Overhead (Debit)
Raw Materials Inventory (Credit)
Raw Materials Costs (Assigning to Overhead) (Journal Entry)
None
Factory Labor (Debit)
Factory Wages Payable (Credit)
Factory Labor Costs (Assigning to Overhead) Journal Entry
None
Work in Process Inventory (Debit)
Overhead (Credit)
Overhead Costs (paying) Journal Entry
None
Finished Goods inventory (Debit)
Work in Process Inventory (Credit)
Assigning Costs to Finished Goods Journal Entry
None
(1) Accounts Receivable (Debit)
Sales (Credit)
(2) Cost of Goods Sold (Debit)
Finished Goods Inventory (Credit)
Assigning Costs to Cost of Goods Sold (journal entry)
None
Overhead (Debit)
Cost of Goods Sold (Credit)
Year-End Balance Journal Entry
None
Overhead Costs > Work in Process Machining Department > Work in Process Assemble Department > Finished Goods Inventory > Cost of Goods Sold
Process Cost System
None
Units Completed and Transferred Out
+Equivalent Units of Ending Work in Process (WIP End x 100% (Materials) or % for Conversion Costs)
= Equivalent Units of Production
Equivalent Units of Production
None
Estimated overhead per Activity ∻ Expected Use of Cost Drivers per Activity
Activity-Based Overhead Rate (Formula)
None
Change in Total Costs ∻ High minus Low Activity Level
Variable Cost per Unit (formula)
None
Unit Selling Price - Unit variable Costs
Contribution Margin per Unit (formula)
None
Contribution Margin per Unit ∻ Unit Selling Price
Contribution Margin Ratio (formula)
None
Variable Costs + Fixed Costs + Net Income
Sales (Formula)
None
Fixed Costs ∻ Contribution Margin per Unit
Break-Even Point in Units (formula)
None
Fixed Costs ∻ Contribution Margin Ratio
Break-Even Point in Dollars (formula)
None
Sales - Break-Even Sales
Margin of Safety (formula)
None
Fixed Costs ∻ Contribution Margin per Unit
Break-Even Sales (formula)
None
Make and Buy:
Direct Materials
Direct Labor
Variable Overhead
Fixed Overhead Purchase Price (Units x buy unit price)
Total Annual Costs
Make - Buy = NI (negative-decline)
Make or Buy
None
Revenues (Units x Price)
-Cost of Goods Sold
-Expenses
=Net Income

Negative-Reject

Cost of Goods Sold (Expenses): VC (%) x CGS = Cost per Unit (Expenses)

CGS (Expenses) = Unit x Price
Order at a Special Price
None
Direct Materials
Direct Labor
Variable Overhead
=Total Variable Costing
Product Cost using Variable Costing
None
Direct Materials
Direct Labor
Variable Overhead
Fixed Overhead
=Total Absorption Costing
Product Cost using Absorption Costing
None
Market Price - Desired Profit
Target Cost (formula)
None
Cost + (Markup Percentage x Cost)
Target Selling Price (formula)
None
Desired ROI per Unit ∻ Total Unit Cost
Markup Percentage (formula)
None
Net Income ∻ Invested Assets
Return on Investment (ROI) (formula)
None
Present Value - Investment
Net Present Value (formula)
None
Future Value x Present Value %
Present Value (formula)
None
Present Value ∻ Investment
Profitability Index (formula)
None
Investment ∻ Net Cash Flow
Payback Period
None
Investment ∻ Net Cash Flow = IRR Factor Find Closest on Table
Internal Rate of Return (IRR) (formula)
None
Net Income ∻ Average Investment
Annual Rate of Return (ARR) (formula)
None
(Investment + Salvage Value) ∻ 2
Average Investment (formula)
None