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62 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Enterprise Resource Planning (ERP) System
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Software that provides a comprehensive, centralized, integrated source of information used to manage all major business processes.
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Indirect Labor
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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.
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Indirect Materials
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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.
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Just-in-Time (JIT) Inventory
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Inventory system in which goods are manufactured or purchased just in time for use.
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Line Positions
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Jobs that are directly involved in a company’s primary revenue-generating operating activities.
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Activity-Based Costing
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A method of allocating overhead based on each product’s use of activities in making the product.
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Balanced Scorecard
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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.
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Managerial Accounting
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A field of accounting that provides economic and financial information for managers and other internal users.
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Board of Directors
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The group of officials elected by the stockholders of a corporation to formulate operating policies, select officers, and otherwise manage the company.
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Chief Executive Officer (CEO)
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Corporate officer who has overall responsibility for managing the business and delegates that responsibility to other corporate officers.
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Manufacturing Overhead
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Manufacturing costs that are indirectly associated with the manufacture of the finished product.
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Chief Financial Officer (CFO)
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Corporate officer who is responsible for all of the accounting and finance issues of the company.
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Controller
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Financial officer responsible for a company’s accounting records, system of internal control, and preparation of financial statements, tax returns, and internal reports.
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Direct Materials
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Raw materials that can be physically and directly associated with manufacturing the finished product.
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Period Costs
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Costs that are matched with the revenue of a specific time period and charged to expense as incurred.
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Total cost of work in process - cost of the ending work in process inventory
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Cost of Goods Manufactured
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None
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Direct Labor
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The work of factory employees that can be physically and directly associated with converting raw materials into finished goods.
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Product Costs
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Costs that are necessary and integral part of producing the finished product.
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Staff Positions
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Jobs that support the efforts of line employees.
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Theory of Constraints
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A specific approach used to identify and manage constraints in order to achieve the company’s goals.
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Cost of the beginning work in process + total manufacturing costs
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Total Cost of Work in Process
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None
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Direct materials + direct labor + overhead
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Total Manufacturing Costs
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None
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Total Quality Management (TQM)
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Systems implemented to reduce defects in finished products with the goal of achieving zero defects.
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Treasurer
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Financial officer responsible for custody of a company’s funds and for maintaining its cash position.
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Value Chain
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All activities associated with providing a product or service
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Beginning Work in Process + Direct Materials + Direct Labor + Manufactured Overhead - Ending Work in Process
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Cost of Goods Sold (Formula)
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None
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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
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None
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Raw Materials Inventory (Debit)
Accounts Payable (Credit) |
Raw Materials Costs Journal Entry
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None
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Factory Labor (Debit)
Factory Wages Payable (Credit) |
Factory Labor Costs (Journal Entry)
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None
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Overhead (Debit)
Overhead Costs (Credit) |
Overhead Journal Entry
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None
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Work in Process Inventory (Debit)
Overhead (Debit) Raw Materials Inventory (Credit) |
Raw Materials Costs (Assigning to Overhead) (Journal Entry)
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None
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Factory Labor (Debit)
Factory Wages Payable (Credit) |
Factory Labor Costs (Assigning to Overhead) Journal Entry
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None
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Work in Process Inventory (Debit)
Overhead (Credit) |
Overhead Costs (paying) Journal Entry
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None
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Finished Goods inventory (Debit)
Work in Process Inventory (Credit) |
Assigning Costs to Finished Goods Journal Entry
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None
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(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)
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None
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Overhead (Debit)
Cost of Goods Sold (Credit) |
Year-End Balance Journal Entry
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None
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Overhead Costs > Work in Process Machining Department > Work in Process Assemble Department > Finished Goods Inventory > Cost of Goods Sold
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Process Cost System
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None
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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
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None
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Estimated overhead per Activity ∻ Expected Use of Cost Drivers per Activity
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Activity-Based Overhead Rate (Formula)
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None
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Change in Total Costs ∻ High minus Low Activity Level
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Variable Cost per Unit (formula)
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None
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Unit Selling Price - Unit variable Costs
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Contribution Margin per Unit (formula)
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None
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Contribution Margin per Unit ∻ Unit Selling Price
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Contribution Margin Ratio (formula)
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None
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Variable Costs + Fixed Costs + Net Income
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Sales (Formula)
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None
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Fixed Costs ∻ Contribution Margin per Unit
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Break-Even Point in Units (formula)
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None
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Fixed Costs ∻ Contribution Margin Ratio
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Break-Even Point in Dollars (formula)
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None
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Sales - Break-Even Sales
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Margin of Safety (formula)
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None
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Fixed Costs ∻ Contribution Margin per Unit
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Break-Even Sales (formula)
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None
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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
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None
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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
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None
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Direct Materials
Direct Labor Variable Overhead =Total Variable Costing |
Product Cost using Variable Costing
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None
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Direct Materials
Direct Labor Variable Overhead Fixed Overhead =Total Absorption Costing |
Product Cost using Absorption Costing
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None
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Market Price - Desired Profit
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Target Cost (formula)
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None
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Cost + (Markup Percentage x Cost)
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Target Selling Price (formula)
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None
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Desired ROI per Unit ∻ Total Unit Cost
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Markup Percentage (formula)
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None
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Net Income ∻ Invested Assets
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Return on Investment (ROI) (formula)
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None
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Present Value - Investment
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Net Present Value (formula)
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None
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Future Value x Present Value %
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Present Value (formula)
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None
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Present Value ∻ Investment
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Profitability Index (formula)
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None
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Investment ∻ Net Cash Flow
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Payback Period
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None
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Investment ∻ Net Cash Flow = IRR Factor Find Closest on Table
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Internal Rate of Return (IRR) (formula)
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None
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Net Income ∻ Average Investment
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Annual Rate of Return (ARR) (formula)
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None
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(Investment + Salvage Value) ∻ 2
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Average Investment (formula)
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None
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