Acg2071-Exam 1

Front 1

Know the three inventory accounts used by a manufacturer.

Back 1

raw materials
work in process
finished goods

Front 2

Review the differences between Financial and Managerial accounting.

Back 2

Managerial accting is concerned with providing info to managers- people inside op with control in its operations. Financial acct provides info to stockholders, credits, others outside of organization.

Front 3

Know and be able to define the three major activities of a manager.

Back 3

planning
directing and motivating
controlling

Front 4

administrative cost

Back 4

all executive, organizational and clerical costs associated with the general management of an organization rather than with manufacturing or selling

Front 5

budget

Back 5

a detailed plan for the future, usually expressed in formal quantitative terms

Front 6

common cost

Back 6

a cost that is incurred to support a number of cost objects but that cannot be traced to them individually

Front 7

control

Back 7

the process of instituting procedures and then obtaining feedback to ensure that all parts of the organization are functioning effectively and moving toward overall company goals

Front 8

controller

Back 8

the member of the top management team who is responsible for providing relevant and timely data to managers and for preparing financial statements for external users. The controller reports to the CFO

Front 9

controlling

Back 9

actions taken to help ensure that the plan is being followed and is appropriately modified as circumstances change

Front 10

conversion cost

Back 10

direct labor cost plus manufacturing overhead cost

Front 11

cost behavior

Back 11

the way in which a cost reacts to changes in the levle of activity

Front 12

cost object (and examples)

Back 12

anything for which cost data are desired (products, customers, jobs, departments, divisions)

Front 13

cost of goods manufactured

Back 13

the manufacturing costs associated with the goods that were finished during the period

Front 14

differential cost

Back 14

a difference in cost between two alternatives (same as incremental cost)

Front 15

differential revenue

Back 15

tthe difference in revenue between two alternatives

Front 16

direct cost

Back 16

a cost that can be easily and conveniently traced to a specified cost object

Front 17

directing and motivating

Back 17

mobilizing people to carry out plans and run routine operations

Front 18

direct labor

Back 18

factory labor costs that can be easily traved to individual units of product (same as touch labor)

Front 19

direct materials

Back 19

materials that become an integral part of a finished product and whose cost can be conveniently traced to it

Front 20

feedback

Back 20

accounting and other reports that help managers monitor performance and focus on problems and/or opportunities that might otherwise go unnoticed

Front 21

financial accounting

Back 21

the phase of accounting concerned with providing information to stockholders, creditors, and others outside of the organization

Front 22

finished goods

Back 22

units of product that have been completed but not yet sold to custonmers

Front 23

fixed cost

Back 23

a cost that remains contant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity

Front 24

incremental cost

Back 24

an increase in cost between to alternatives (same as differential cost)

Front 25

indirect cost

Back 25

a cost that cannot be easily and conveniently traved to a specified cost object

Front 26

indirect labor

Back 26

the labor costs of janitors, material handlers, and other factory workers that cannot be conveniently traced to particular products

Front 27

indirect materials

Back 27

small items of material such as glue and nails that may be an integral part of a finished product, but whose costs cannot be easily of conveniently traced to it

Front 28

inventoriable costs

Back 28

same as product cost

Front 29

managerial accounting

Back 29

the phase of accounting concerned with providing information to managers for use within the organization

Front 30

manufacturing overhead

Back 30

all manufacturing costs except direct materials and direct labor

Front 31

opportunity cost

Back 31

the potential benefit that is given up when one alternative is selected over another

Front 32

performance report

Back 32

a detailed report comparing budgeted data to actual data

Front 33

period costs

Back 33

costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued

Front 34

planning

Back 34

selecting a course of action and specifying how the action will be implemented

Front 35

planning and control cycle

Back 35

the flow of management activities through planning, directing and motivating, and controlling, and then back to planning again

Front 36

prime cost

Back 36

direct materials cost plus direct labor cost

Front 37

product costs

Back 37

all costs that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead (same as inventoriable costs)

Front 38

raw materials

Back 38

any materials that go into the final product

Front 39

relevant range

Back 39

the range of activity within which assumptions about variable and fixed cost behavior are valid

Front 40

schedule of cost of goods manufactured

Back 40

a schedule showing the direct materials, direct labor, and manufacturing overhead costs incurred during a period and porrtion of those costs are assigned to Work in Process an Finished Goods

Front 41

segment (examples)

Back 41

any part of an organization that can be evaluated independently of other parts and about which the manager seeks financial data. (product line, sales territory, division, department)

Front 42

selling costs

Back 42

all costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer

Front 43

sunk cost

Back 43

a cost that has already been incurred and that cannot be changed by any decision made not or in the future

Front 44

variable cost

Back 44

a cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is constant per unit

Front 45

work in process

Back 45

units of product that are only partially complete

Front 46

A position that is directly related to achieving the basic objectives of an organization is called a __________ position.

Back 46

line

Front 47

A diagram that shows how responsibility is divided among mgrs and shows formal lines of reporting and communication is called an __________

Back 47

organization chart

Front 48

A __________ position provides service or assistance to other parts of the organization and doesn't directly achieve basic obj. of the org.

Back 48

staff

Front 49

The mgr in charge of accounting department is usually the __________

Back 49

controller

Front 50

The __________ is the member on top mgmt team who is responsible for providing timely relevent data to support planning/control activities and for preparing fin statements for external users

Back 50

CFO